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Petrol price in India is revised every day after adapting to dynamic pricing mechanism. Get today’s latest updated petrol price in Petrol Price In Lucknow
16 June 2021
Current Petrol Per Liter
₹ 93.69 /L
₹ 0.00 /L
₹ 0.28 /L
₹ 93.41 /L
₹ 0.26 /L
₹ 93.15 /L
₹ 92.87 /L
₹ 0.25 /L
₹ 92.62 /L
₹ 0.27 /L
₹ 92.35 /L
₹ 92.09 /L
₹ 0.21 /L
₹ 91.88 /L
₹ 0.20 /L
₹ 91.68 /L
₹ 0.23 /L
₹ 91.45 /L
₹ 91.25 /L
₹ 0.18 /L
₹ 91.07 /L
₹ 90.89 /L
₹ 0.13 /L
₹ 90.76 /L
₹ -2.93 /L
Petrol prices have been a cause of concern across the country. This holds
true to Lucknow as well, which is considered a Nawabi city. Lucknow is fast
growing as the hub for trading and business. While the entire Uttar Pradesh
is in a transformation mode with increased number of individuals opting for
alternate career options and moving away from agriculture which has been
the primary occupation for many generations. Also, with the growth in
opportunities, there has been considerable migration from other cities
nearby. Lucknow is becoming the most preferred city within the realm of
Uttar Pradesh. The population of Lucknow as of 2018 stands at 3.47 Million,
the city covers an area of 2,528 square kilometers (976 sq mi). The
increase in job opportunities, better disposable income has increased the
number of motor vehicles in the city considerable.
The city is well connected by roads and railway tracks. While the public
transport exists within the city and plies across inter-cities within Uttar
Pradesh, people prefer using their private vehicles for transport. Many
parts of Uttar Pradesh are still into agriculture, hence the usage of
tractors, lorries and other such utility vehicles are more in numbers.
While Lucknow is not among the top 10 cities which own cars, it has seen a
substantial rise in number of vehicles. The data pertaining to 2016,
indicates that the number of cars in Lucknow is 250,000 and the total
number of motor vehicles is 1.82 million. This has translated to increase
in fuel consumption. While demand for both petrol and diesel have gone up,
the demand for petrol remains higher considering the number of two
-wheelers plying across the city. Further, many of the cars are petrol
driven especially if they are for personal consumption. Only commercial
vehicles, transport-oriented vehicles use the diesel option which proves to
be slightly more economical.
The pricing mechanism of petrol in India underwent a change in June 2017.
The dynamic fuel pricing mechanism was adopted as against the fortnightly
mechanism of price revision. The dynamic fuel pricing mechanism allows the
oil marketing companies to revise the fuel prices – petrol and diesel
prices daily. This ensure that any cost pressure is passed on to the end
consumer. Thereby ensuring that the company can curtail the losses
significantly. This also essentially means that when the costs fall, the
benefit would be passed on to the end user. This method is followed by all
developing nations, it is a mechanism which reduces the intervention by
Government authorities. Although, this method would lead to better free
trade economy practices in the long term, within the short term it is
creating a lot of hiccups. The petrol prices and diesel prices have been
revised upwards on a daily basis since the onset of January 2018.
The Government has refrained from intervening to reduce the burden on
householders. The fuel consumption budget has been on a stretch for atleast
8 months now. The prices peaked in September 2018. The Government took
temporary measures by bringing down the prices marginally to provide some
relief to the end user. Although, the prices have stayed below the Rs. 80
per litre mark in most cities since the onset of October 2018. The general
assessment among experts indicate that the fuel prices will head northwards
throughout the last quarter of 2018.
The price of petrol in Lucknow as of 21 October 2018 is Rs. 79.48 per
litre. Over the past 3 trading sessions, the price has moderated below the
Rs. 80 per litre mark. However, this relief may be short lived as the
prices are indicating an upward trend over the coming months. To understand
the petrol price behavior pertaining to Lucknow, there is a need to look at
the pricing prior to introduction of dynamic fuel pricing mechanism.
The prices prior to introduction of Dynamic fuel pricing, prices were
revised twice in a month, the month of April 2017 saw a steady state in
petrol prices. The fuel price for the month of April 2017 averaged around
Rs. 69.35 per litre. The May prices were Rs. 70.76 per litre and Rs. 68.61
per litre (2 revisions in the month as per the earlier mechanism). The
prices by the end of May 2017 was down by 3.13% which provided much relief
to the end user. On the opening day of June 2017, the price was Rs. 69.86,
the closing day for the month of June 2017 posted petrol price of Rs. 66.74
per litre because of introduction of dynamic fuel pricing mechanism.
The advent of dynamic fuel pricing in June 2017 saw an intermediate price
reduction, primarily due to the shift in mechanism. After the first 2
weeks, the petrol prices in Lucknow began to rise, on the last day of July
2017, the price had increased to Rs. 68.52 per litre. The petrol prices
increased by 2.9% in July 2017 and by 4.04% in August 2017. September 2017
saw an increase from Rs. 71.53 per litre in August 2017 to Rs. 72.71 per
litre. The prices have been on a constant rise since then. September 2018
saw the prices peak to ~ Rs. 82 per litre.
The petrol prices in Lucknow are affected by both local and global
macro-economic factors. There are many factors which have subtle effect on
the petrol prices, especially the local factors which are basically
differential pricing of labor, transportation, operational costs etc. The
global factors which include cost of raw materials and exchange rates have
a larger impact on the petrol prices of Lucknow.
Crude oil prices
Crude oil is the primary raw material for petrol and other fuels, crude oil
is imported from OPEC nations. The recent hike in crude oil prices is on
the backdrop of production cuts by the OPEC nations. Crude oil remains the
top item imported by India, with the ever-increasing demand, the import has
grown by volumes. Although, there are efforts to promote alternate fuel
systems which are environmentally friendly, conventional fuel continues to
remain inevitable to the Indian householder.
The payment for crude oil is done using US Dollar. The depreciating rupee
has added to the woes of the oil companies which are now paying much higher
per barrel of crude oil imported. This is another primary reason for the
sharp squeeze in gross profit margins for oil distribution companies.
The cost of hiring transport for distribution of oil or fuel, transporting
raw materials to refineries could vary based on the logistics, labor and
other ancillary costs. These costs typically vary from city to city and
hence, can be categorized under local factors which influence the petrol
prices of Lucknow.
R&D, Marketing costs
Many products, which are variants of petrol and diesel, are also being
introduced by OMCs, this is primarily to offer a range of products to the
customers. These innovation in products is brought about by substantial
investments in research and development. The cost of replacement from one
vendor to another is almost nil, hence, the customer loyalty cannot be
established in a concrete manner. The cost to market these innovative
products is increasing, to ensure that there is considerable awareness
about the uniqueness of the product variants and reaches the right
Commission charged by dealers
The petrol and diesel dealers charge a commission of 7% on a litre of
petrol. The commission is standard within the city but could vary across
cities, based on the demand – supply dynamics. The amount of commission is
added to the end pricing of the fuel.
Excise duty by Central Government
The Central Government excise duty is consistent across all states, hence,
does not have any specific impact on individual state or city. The excise
duty is applied at Rs. 19.48 per litre.
Value added tax
Petrol price has a VAT amounting to 32.9% across Uttar Pradesh. The same is
applicable for petrol marketed and distributed in Lucknow. The value added
tax is determined by the State Government, hence, this could create a
disparity in the petrol prices from one State to another.
The costs incurred across the above factors will be computed on a per litre
basis and will be added to the overall cost per litre of petrol or diesel.
Crude oil is the raw material applicable for both petrol and diesel. The
amount of processing that petrol undergoes is far more complex as compared
to that of diesel. Hence, the price parity between petrol and diesel. While
the petrol per litre price in Lucknow is Rs. 79.48 as of 21 October 2018;
for the same period the diesel price is Rs. 73.39 per litre.
1. How has the increase in job opportunities and disposable
income of Lucknow influenced the petrol prices in Lucknow?
The increase in disposable income has increased the number of motor
vehicles and two – wheelers across the city. This has inturn increased the
demand for petrol and diesel substantially. The increase in demand, backed
by short supply of raw materials for petrol and diesel (crude oil) has led
to increase in petrol prices in Lucknow.
2. What are some of the prominent oil marketing companies in
The prominent oil marketing companies in Lucknow are HP, Reliance, Indian
Oil. They operate across Uttar Pradesh and command major market share in
Highest Rate in June
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Over all performance
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