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Todays Petrol Price

11 August 2020

₹ 87.55

Current Petrol Per Liter

Petrol Prices in Metro Cities

Petrol Price In Jaipur

11 August 2020

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  • 2020-08-11

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  • 2020-08-10

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  • 2020-08-09

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  • 2020-08-08

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  • 2020-08-07

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  • 2020-08-06

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  • 2020-08-03

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  • 2020-08-02

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  • 2020-08-01

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  • 2020-07-31

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  • 2020-07-30

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  • 2020-07-29

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  • 2020-07-28

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  • 2020-07-27

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  • 2020-07-22

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  • 2020-07-21

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  • 2020-07-19

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  • 2020-07-18

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  • 2020-07-17

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Petrol Prices in Jaipur

Jaipur is the capital city of Rajasthan. The largest city in the state is also very culturally rich, artistic and historic. Jaipur is a city of palaces, forts and other monuments, making it one of the most socially rich urban cities in the country. It has a population of about 32 lakhs and an area of 484 square kilometres.

Jaipur has seen its economy grow over the last few decades. Tourism is the main stay of the economy but many large and small scale industries have been set up. It is one of the largest exporters of diamond, gold and precious stone jewellery. It is also emerging as a global outsourcing destination as well with large BPO set ups by Genpact, Infosys amongst many others. The city contributes a whopping $24 billion GDP to the country.

Transport Infrastructure in Jaipur

Transportation facility in the city of Jaipur is still developing. Public transportation is quite understated. With growing traffic conditions, the city has been undergoing further development in the area of transportation.

The Jaipur Metro is the latest addition to the transportation infrastructure. It is the 6thcity in the country have the metro facility. The low floor buses is another mode of public transport that is widely used by the citizens. The comfortable access and wide network of such buses contributes to the excellent infrastructure in the city. Since the city has both urban and historic areas, accessing the narrow routes of the Old city is quite a challenge. Hence, people prefer using the e-rickshaws which are compact an easy to manoeuvre on these old roads. The most preferred and 24x7 available public transport system is the good old autorickshaw. Pocket friendly and quickly available, it is still considered as the most dependable transportation option.

Despite a robust public transportation system, many people prefer using their personal mode of transport like bikes, scooters, cars etc. This adds to the number of wheels on the road and leads to congestion. However, it is easier and faster to reach one’s destination if you don’t have to depend on public transportation. As per the transport department of the Government of Rajasthan, total of 1.59lac vehicles were registered in Jaipur city alone in the year 2017.

The petrol price has been on a rise for quite some time in the city. The city is recording a high price of about Rs. 82/litre in the past of few days. The analysis of petrol pricing in the city of Jaipur can be noted below.

Why are petrol rates so high in Jaipur?

The petrol price in Jaipur has been hovering above Rs. 80 per litre for months now. It is only expected to go upwards due to many factors like geopolitical and economic influences. Petrol prices are affected by many factors in India.

In the recent past, there have been many trade wars and stiff geo-political issues amongst nations. This has had a strong influence on the global trade and created a strong reason for pushing fuel prices upwards.

Petrol prices are dependent on the crude oil prices globally. As a country, we import crude oil to process it further into many other forms for consumption. The supply of crude oil is controlled by the OPEC countries (Organization of Petroleum Exporting Countries). In the recent past, the supply and production of crude oil has been curbed. This has led to a high demand and high prices globally which affects the common man directly in India.

There are high taxes levied by the Central & State Governments in our country. They earn revenue easily through these taxes. This varies across the states and is one of the main reasons for petrol prices to remain high.

The petrol price in Jaipur has increased by more than Rs. 25 per litre since July 2010. At Rs. 47.93 per litre in July 2010 to today, at Rs. 85 per litre, it has only been a journey of highs in this segment.

Pricing Mechanism of Petrol in India

There is an elaborate process of determining of the pricing of petrol prices in India. A number of components constitute the pricing mechanism of petrol, that is, Retail Selling Price of petrol (RSP). The Indian Oil Marketing companies like IOCL, BPCL, and HPCL etc. use a particular method called as Trade Parity Pricing methodology to calculate the RSP. Since 2010, the petrol prices have been linked directly to the international crude oil prices. This method calculated the price of petrol on the basis of the assumption that 80% of the fuel is imported in India and 20% exported. That means, the import parity price is 80% and 20% constitutes the Export parity price.

Export Parity Pricing: This price is the amount realized by the Oil Marketing Companies on the export of petroleum products. FOB and ALB (advance License Benefit) for duty free import of the crude oil is included in this pricing. ALB is currently charged at zero due to the abolishment of the Customs Duty of Crude Oil from 2011 onwards.

Import Parity Price: It includes the FOB charges (Free on Board), Ocean Freight, Custom Duties, Insurance and Port dues. This total price is paid by the importers at the port.

There have been many debates on this pricing method done by the government. Critics of this method say that this is done purely to protect the interests of the OMCs and the PSUs involved in the Petroleum refining business. This method also made sense only when the petrol prices were controlled by the Government. However, in the current scenario, where petrol prices are linked to international prices, it should be made market linked. The pricing needs to be based on the cost borne by the refineries and the margins applicable. It needs to be linked on the crude oil sourcing, capacities of refining, operational efficiencies, marketing expenditure and such. There is also another point of debate that since India exports most of its petroleum products such as petrol and diesel, allocating 20% weight to EPP does not seem right.

Components of petrol prices in India

There are many components that add up to the petrol prices in India.

FOB: The free-on-board price is the purchase price of petrol. The oil marketing companies buy crude oil at this price from the international market.

Customs Duty: There is tax levied by the Government of India on the import of crude oil.

Import Parity Price: This price is to be paid by the OMCs at the port to bring in the crude oil for processing. It includes the import charges, customs duty and the freight cost.

Refinery Transfer price: The oil marketing companies need to pay the refineries the cost of transferring petrol there.

Inland Freight: This is the transportation price paid by the OMCs for moving the fuel from the refinery to the retail outlets.

Depot Price: The owners of the retail outlets pay a certain price to buy the fuel from the OMCs.

Freight: The transportation cost of getting the crude oil from the international markets called as freight. This is added to the FOB charge. The combined price is called as cost and freight charges.

Import charges: Insurance, Port and ocean losses make up the Import charges. The premium paid to the insurance provider is called as the insurance charges. Port dues are charges applicable for making use of the facilities at the port.

Excise Duty: The Central Government charges a duty for importing oil into the country. It is a uniform rate charged at Rs.19.48 per litre.

VAT: The State Government charges Value Added Tax on petrol. It differs from state to state.

The above components make up the petrol price in Jaipur. Almost 40-45% of the petrol cost is made up of all taxes and dealer commissions.

Petrol price in Jaipur as compared to other cities

Petrol price in Jaipur has been above Rs. 80 per litre for quite sometime. It has been in the region of Rs. 82 to Rs. 85 per litre in the last few weeks. This is comparable to other major cities in the country. Delhi has been constantly recording a price above Rs. 80 per litre and Mumbai has almost the touched the sky with Rs. 87 per litre in the last few days. Chennai has been recording a high price for its history around Rs. 84 per litre which is also similar for Kolkata.

How frequently are petrol prices in Jaipur computed?

The dynamic fuel pricing model was brought in by the Government of India in 2017. The prices are now linked directly to the international price of crude oil. The price of petrol is now calculated on a daily basis as is the case with the international price of oil and not on a fortnightly basis. This type of pricing brings about transparency in the computation of the petrol price and less meddling by the political parties. The dynamic fuel pricing method has been followed by all the state-owned oil marketing companies like IOCl, HPCL and BPCL.

The petrol prices are revised at 6am on a daily basis. This is calculated on the basis of previous day’s cost. The revision in the price can be tracked through the following manner:

  1. App: The OMCs have brought out apps that help you track the prices through your phone. Fuel@IOC is the app developed by IOCL. This can be downloaded through the Google Play Store and Apple Store. SmartDrive is managed by BPCL and MYHPCL by HPCL.

  2. SMS: There is an option of sending a text message to dealer for quick updates.

    (Retail Sale Price) RSP DEALER CODE to 9224992249 (For Indian Oil) For Bharat Petroleum, the number is 9223112222. For Hindustan Petroleum, you can send an SMS HPPRICEDEALERCODE to 9222201122. Note: Petrol re-filling stations also display the dealer code of each petrol pump.

  1. OMC website: The websites are also updated on a daily basis and you can view the prices of petrol in each city with the help of the RO locater.

Benefits of Dynamic Fuel Pricing

With the introduction of the dynamic fuel pricing system, the end consumers can enjoy the benefits of international crude oil pricing immediately. Earlier the revision of petrol price used to happen only on a fortnightly basis. But now, with the daily change in the price, the benefit of a lower price can be passed onto the end consumer immediately instead of waiting for 2 weeks.

The dynamic fuel pricing method is at par with the methods followed in advanced countries. It allows for a transparent system to be in place with least or no influence at all from external parties.

The daily revision in the petrol price brings about parity in the domestic pricing of the fuel. Consumers enjoy the benefit of lower prices immediately and OMCs are immediately able to pass on the hike as well.

GST and Petrol Prices in Jaipur

The petrol price does not come under the gamut of GST as of today. The current tax structure is making the fuel price quite costly for the end consumer. There has been a push for making petrol included in the GST structure. However, with a 28% slab and state added VAT, the end price of the petrol could potentially be more expensive for the end consumer. Experts believe that the Government will need to take a call alongwith the State Governments to make petrol more affordable. Due to the high revenues generated out of these fuel taxes, the governments lack the political will to change the existing structure.

Ways to save Petrol Cost

Cashback on Fuel Cards: This is one easy and quick way to save your expenses on fuel. Most banks offer co-branded credit or debit cards with the Oil Marketing Companies and help you save on the surcharge waivers and offer cashback at all fuel stations. Some of these cards are ICICI Bank HPCL credit card, BPCL SBI Credit card and HDFC All Miles credit card.

Electric cars:Currently India is warming up to the idea of introducing electric cars on the road. It is quite easy to drive and maintain than the fuel driven cars. As per experts, the maintenance cost is under one rupee per kilometre on an electric car compared with four to five rupees on a diesel or petrol vehicle.

Car Pooling:For your daily commutes especially to work, car pooling is an effective option. This helps in reducing your petrol expenses as well pollution and congestion on the roads.

Cycle to work:Many companies have been promoting the idea of cycling to work by its employees. It helps in reaching your destination faster and is definitely easier to maintain than a vehicle.

Ridesharing:Ride sharing is another upcoming popular option for daily commuters. Most of the leading cabs in India like the Ola and Uber offers this as an option to the riders who need to go to the same location. This is an on-demand service and can be booked instantly through your mobile phone.

FAQs

  1. What are the ways in which one can reduce fuel expenses?

Changes in lifestyle will be one of the most important ways to reduce fuel expenses. Daily commutes can be shared with other commuters, using cashback offers to save on fuel price and surcharge waivers offered by the banks need to be utilized regularly.

  1. Why is the petrol price so high in Jaipur?

While the central government levies high taxes on the import of crude oil, the state government charges VAT which adds to the increase in the cost of the fuel.

  1. What is the Dynamic Pricing Model?

Under this pricing method, the fuel price is revised on a daily basis and the new prices are put up at 6am.

  1. Is petrol included under the GST scheme?

No, currently petrol is not included under GST.

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