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Petrol Price In Jammu

04 April 2020

Date

Petrol Prices

Change

  • 2020-04-04

    ₹ 70.02 /L

  • 2020-04-03

    ₹ 70.02 /L

  • 2020-04-02

    ₹ 70.02 /L

  • 2020-04-01

    ₹ 70.02 /L

  • 2020-03-31

    ₹ 70.02 /L

  • 2020-03-30

    ₹ 70.02 /L

  • 2020-03-29

    ₹ 70.02 /L

  • 2020-03-28

    ₹ 70.02 /L

  • 2020-03-27

    ₹ 70.02 /L

  • 2020-03-26

    ₹ 70.02 /L

  • 2020-03-25

    ₹ 70.02 /L

  • 2020-03-24

    ₹ 70.02 /L

  • 2020-03-23

    ₹ 70.02 /L

  • 2020-03-22

    ₹ 70.02 /L

  • 2020-03-21

    ₹ 70.02 /L

  • 2020-03-20

    ₹ 70.02 /L

  • 2020-03-19

    ₹ 70.02 /L

  • 2020-03-18

    ₹ 70.02 /L

  • 2020-03-17

    ₹ 70.02 /L

  • 2020-03-16

    ₹ 70.02 /L

  • 2020-03-15

    ₹ 70.17 /L

  • 2020-03-14

    ₹ 70.29 /L

  • 2020-03-13

    ₹ 70.42 /L

  • 2020-03-12

    ₹ 70.55 /L

  • 2020-03-11

    ₹ 70.99 /L

Petrol Prices in Jammu

Jammu is a popular hill station in the North of India and the winter capital of the state in J&K. Situated on the banks of the river Tawi, the city is governed by the local Municipal Corporation. A popular tourist spot, people from all over the country as well as the globe flock here to escape the heat, hit the popular tourist stops such as the museum and fort, and shop for local handicraft. It is also a pit stop for pilgrims visiting the famous Vaishno Devi Temple.

Transport infrastructure in Jammu

The Jammu Tawi (JAT) airport is connected with all major Indian cities. The railway which was resumed in 1971 after it broke down during the partition of India in 1947, connects the city to Mumbai, Katra, and other cities of India. The NH1A passes through the city of Jammu as does the NH1B. These two highways connect Jammu to Kashmir, Poonch, Katra, and other neighbouring cities. The JKSRTC (Jammu Kashmir State Road Transport Corporation) runs busses for local transport within the city as well as to neighbouring cities. The mini busses used on the hilly roads are called Matadors. Auto rickshaws also ply the roads as do taxis.

Why are petrol rates so high in Jammu?

Jammu has a flourishing tourist industry. Tourists and pilgrims visiting Vaishno Devi, Kashmir, Shimla, and other hill stations of the north use Jammu as a pit stop to rest and refresh. They also shop for local craft within the city. The city itself has a number of tourist attractions such as the Amar Mahal Palace, the Raghunath Temple, the Dogra Art Museum, and the Mubarak Mandi Palace. Also the cool climate of the city due to its high elevation of more than 1000 feet as well as its scenic beauty bring tourists from the world over to spend a few stress free days here.

As more and more tourists visit each year, the demand for transport – and therefore fuel –grows incrementally. This rising demand coupled with the highly volatile price of crude oil and currency exchange rate make petrol in Jammu a very necessary but expensive commodity.

Pricing mechanism of petrol in India

Prior to decontrol, the Government of India computed petrol prices by the trade parity method. This method computes petrol price as a percentage of export and import parity. This method was continued even after decontrol. Currently the ratio of import parity to export parity stands at 80:20. This means that the petrol price comprises 80% import cost and 20% export benefit.

Import parity is the cost of importing crude oil. It includes ocean freight, ocean losses, custom duty, and dock charges. 80% of this cost is added to the price of petrol to compute the retail sales price (RSP) of petrol.

Export parity is the amount received by the exporters for exporting fuel and other petroleum products. This includes the cost of manufacture as well as the cost of transporting it to the dock and loading it on to the ship. 20% of this cost is included in the price of petrol.

Experts opine that petrol prices after decontrol should be based on cost + profit rather than the trade parity. The reason they give for this is that there are several other forces that drive petrol prices in a capitalist economy.

Components of petrol prices in Jammu

Petrol prices are based on trade parity. The various individual components that make up the import and export parity are as under:

Free on-Board Price (FOB): This is the price of loading the product onto the ship. It includes cost of product plus transportation to dock.

Customs Duty:This is levied by the central government on all imports.

Port Charges: A fee charged by the port authorities for using their services.

Import Parity Price (IPP):It is the charge paid by the importers to receive the crude oil at the docks. It includes custom duty and port charges.

Refinery Transfer Price:This is made up of IPP + cost of transporting oil to refineries.

Inland Freight:Inland freight is the transport cost for transferring petrol from refineries to retail outlets.
Depot Price:
Depots are the store of petrol at the retail outlets. The price that these outlets pay for purchasing petrol is called the depot price.

Freight:The price paid to the shipping company for transporting oil from foreign port to Indian port is called freight.

Import Charges:Import charges comprise of freight, insurance, and ocean losses.

Excise Duty:This is a duty imposed by the Central Government on imports. Currently the Excise charged is Rs. 19.48/Lt.
VAT:
Value-added tax (VAT) is the tax levied by the state Government on petrol. VAT differs across states.

The price of petrol and fuel is the total of the above costs. About 45% of the total petrol price is made up of taxes. Statistics show that taxes – both excise duty and VAT – from petroleum products alone have doubled during the last 4 years.

Petrol price in Jammu as compared to other cities

Petrol prices in Jammu – as in the rest of the country – are high. The price as on 22nd October 2018 in Jammu and adjoining Srinagar are Rs. 80. 62 and Rs. 83. 42 respectively.

The table below shows the petrol prices of petrol in Jammu for the month of October 2018.

₹ 81.42 +00.2309-Oct-18
₹ 81.42 +00.0010-Oct-18
₹ 81.51 +00.0911-Oct-18
₹ 81.63 +00.1212-Oct-18
₹ 81.81 +00.1813-Oct-18
₹ 81.86 +00.0514-Oct-18
₹ 81.86 +00.0015-Oct-18
₹ 81.97 +00.116-Oct-18
₹ 81.77 -00.2018-Oct-18
₹ 81.53 -00.2419-Oct-18
₹ 81.15 -00.3820-Oct-18
₹ 80.62 -00.5322-Oct-18

This shows that there is an overall increase in the price of petrol in Jammu though it competes favourably with other cities.

How frequently are Petrol Prices in Jammu Computed?

OMCs all over the country compute the price of petrol on a daily basis. This method of pricing was recently adopted by the government of India over the fortnightly model. There were several reasons behind the shift –

  1. The price of crude oil fluctuates daily. This is not reflected in the fortnightly model.

  2. Currency rates too fluctuate frequently which are not reflected in the fortnightly petrol pricing model.

  3. Speculation, anticipatory hoarding, and other malpractices were rampant under the earlier pricing model.

  4. The new model has put a stop to speculation by bring complete transparency into petrol prices.

  5. The new model also transmits the effect of change in price of crude oil and currency immediately to the end user.

Benefits of Dynamic fuel pricing

The new dynamic pricing model has been well received. Experts believe that it passes on the impact of fluctuation in the international price of crude oil to the customer or end user without delay. It also curbs speculation – which was rife under the fortnightly model – and other malpractices. The new model has placed India on the globe at par with other advanced countries that have already adopted this model.

GST and petrol prices in Jammu

Petrol and petroleum products have yet to be impacted by GST. Currently excise duty and VAT are applied to the retail price of petrol. However, experts opine that bringing petrol under the ambit of GST will level out the price of the fuel across the country. Even if GST is applied at the highest slab of 28% it will still be lower than the current 40+% component of petrol price.

Diesel prices in Jammu

Diesel prices fluctuate daily similar to those of petrol. This is because the raw material – crude oil – used is the same. Since the price of crude oil is volatile, so are the prices of petrol and diesel. However diesel gets a better government subsidy as compared to petrol. For this reason, the price of diesel remains lower than that of petrol.

Cash backs on fuel cards

Private vehicle owners can get some relief on petrol prices by using fuel cards. These are specialized debit or credit cards that offer either a percentage of the petrol price as cash back or some reward points. Reward points can be redeemed in exchange for gifts or gift vouchers. This is one way to save up on the cost of fuel.

Other ways to save petrol cost

Here are some other ways in which you can save on fuel costs -

Electric cars:Electric cars are an upcoming technology which is potentially seen as a fuel saver. Predictions claim that more than 10000 electric cars will be plying Indian roads by 2025.

Car Pooling: By no means a new concept, car-pooling means sharing your car with neighbours travelling to the same general location as you. If you volunteer to drive on day 1, you can request your passengers to drive on days 2, 3, and 4 by turns thereby distributing the cost of travel among 4 persons. This is not only economical but satisfying too. It is up to the government to encourage such efforts by offering subsidy or incentive for such initiatives.

Cycle to work:Cycling to and from work every day is equivalent to a couple of hours’ workout at the gym. You can also save a pretty penny on fuel cost while you exercise.

Ridesharing:App based cars are becoming increasingly popular. Many of these cars offer shared rides from one point to another within the city. Using these rides saves fuel costs and also saves you the energy required for driving your own vehicle.

Frequently asked questions

(1) What is the Dynamic Pricing Model?

The dynamic pricing model for petrol pricing is a new model adopted by the government of India shunning the older fortnightly model. While the computation mechanism remains largely the same barring some changes, prices are computed daily instead of every 2 weeks.

(2) Where can I check the daily rates of petrol in Jammu?

The daily rate of petrol can be accessed through App, SMS service or on the website of oil companies like Indian Oil. Send RSP followed by dealer code to the appropriate number of the respective OMC to get the current petrol price as a response. Websites and apps provide much more information.

(3) Why are petrol prices in Jammu higher as compared to other cities?

Petrol prices are primarily dependent on the price of crude oil. Since crude oil is an internationally traded commodity, its price is highly volatile. These frequent fluctuations cause the price of petrol to fluctuate as well. Besides, local demand and supply also impact the price of petrol.

(4) What will be the impact of GST on petrol prices?

Petrol prices are as yet unaffected by GST. However it is possible that the situation may change in the near future.

(5) How can I save money on petrol?

There are many ways to save on petrol. You can use your fuel card, use shared rides offered by app based cars, or opt for other alternative travel options such as car-pooling. If you live close to your place of work, you can walk or cycle to work.

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