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Todays Petrol Price

06 July 2020

₹ 80.97

Current Petrol Per Liter

Petrol Prices in Metro Cities

Petrol Price In Lucknow

06 July 2020

Date

Petrol Prices

Change

  • 2020-07-06

    ₹ 80.97 /L

    ₹ 0.00 /L

  • 2020-07-05

    ₹ 80.97 /L

    ₹ 0.00 /L

  • 2020-07-03

    ₹ 80.97 /L

    ₹ 0.00 /L

  • 2020-07-02

    ₹ 80.97 /L

    ₹ 0.00 /L

  • 2020-07-01

    ₹ 80.97 /L

    ₹ 0.00 /L

  • 2020-06-30

    ₹ 80.97 /L

    ₹ 0.00 /L

  • 2020-06-29

    ₹ 80.97 /L

    ₹ 0.04 /L

  • 2020-06-28

    ₹ 80.93 /L

    ₹ 0.19 /L

  • 2020-06-27

    ₹ 80.74 /L

    ₹ 0.17 /L

  • 2020-06-26

    ₹ 80.57 /L

    ₹ 8.66 /L

  • 2020-06-25

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-24

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-23

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-22

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-21

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-20

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-19

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-18

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-17

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-16

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-15

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-14

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-13

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-12

    ₹ 71.91 /L

    ₹ 0.00 /L

  • 2020-06-11

    ₹ 71.91 /L

    ₹ -9.06 /L

Petrol Price in Lucknow

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.

Transport infrastructure in Lucknow

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.

Pricing mechanism of petrol in India

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.

Petrol prices in Lucknow

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.

Components that influence petrol prices in Lucknow

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.

Currency depreciation

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.

Operating costs

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 customers.

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.

Why are petrol prices and diesel prices different?

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.

Frequently asked questions about petrol prices in Lucknow

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 Lucknow?

The prominent oil marketing companies in Lucknow are HP, Reliance, Indian Oil. They operate across Uttar Pradesh and command major market share in Lucknow.

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