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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 Mumbai
08 April 2020
₹ 76.29 /L
₹ 75.28 /L
Mumbai is the capital city of Maharashtra and the Commercial capital of
India. It is also one of the largest metro cities in the world. Mumbai
generates more than a quarter of the state’s gross domestic product. Almost
half of the Indian foreign trade transactions happen in this city.
The city area is 604 square kilometres. As per 2011 census, the population
of Mumbai city was 1.84 crores. Mumbai is known as one of the top 10
commercial centres in the world. It is also home to major financial
institutions like the RBI, National Stock Exchange of India and Bombay
Stock Exchange. Film & Entertainment industry has a vast base in the
city. The economy of Mumbai was once dominated by the cotton textile
industry, however, now it is completely diversified. It includes
petrochemicals, automobile manufacturing, metals, electronics and
The maximum city is one of the most populous cities in the world. The
suburban railway network is the lifeline of the metro. During peak time,
the local trains get overloaded. This is the most preferred mode of
transport in the city due its efficiency, speed and cost.
In the past decade or so, the infrastructure has become more developed with
the introduction of the Mumbai metro. The Metro Line -1 has become
operational in 2018 and aims to ease the congestion on the local railway
network. Apart from the railway network, the city has a robust taxi network
and top cab brands like Uber and Ola are also present. However, the taxi
services face a real challenge of road congestion and time taken to travel
from one place to another. The government run buses also ply across all
areas of the city and is a preferred mode of transportation due to cost.
Even though the city has many transportation modes, own vehicle, be it a
two wheeler or four wheeler still remains the preferred option of moving
around. The city has seen many expressways and flyovers including the famed
sea-link road to ease the traffic woes. Despite these additional roads, the
traffic issues continue to surge with the burgeoning population. In the
year 2016-17, the total number of vehicles registered with transport
department of Maharashtra was close to 31 lacs. The vehicle count is up by
56% just in 5 years.
The petrol price has been on a high for the past few months. Mumbai has
been seeing one of the most expensive prices for a litre of petrol. The
price of petrol has been consistently above Rs. 85 per litre in the past
few weeks. Let us analyse the reasons behind the rising petrol price.
Mumbai has been the most expensive state capital as far as petrol prices
are concerned. The city recorded a Rs. 90+ price for the first time in
history a few weeks back. There are many reasons for this steep price hike.
The state of Maharashtra levies one of the highest VAT slabs in the
country. In fact, there are two VAT slabs. Petrol pumps in Mumbai, Thane
and Navi Mumbai have to shell out a VAT of 39.12% which is a percentage
point less than the rest of the state.
Globally, there have been many trade wars and geo-political tensions have
contributed to the price rise in international crude oil.
As a country, we import crude oil to process it further into many petroleum
products. The supply of crude oil is in the hands of OPEC countries.
(Organization of Petroleum Exporting Countries) the supply and production
of crude oil has been on a tight leash leading to an increased demand
globally and therefore, increase in crude oil price. This has a direct
influence on the petrol price in our country.
The Retail Selling Price of petrol (RSP) is determined by many components.
There is an elaborate process to arrive at this price. All the Oil
marketing companies in our country like the IOCl, BPCL and HPCL use the
Trade Parity Pricing method to calculate RSP. The price is calculated on
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
Export Parity Price: The amount realized by the oil marketing companies on
exporting petroleum products is called as the export parity price. This
includes the FOB and ALB as well. (Advance license benefit) It is currently
nil as the Government abolished the Customs Duty of Crude Oil in 2011.
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 critical views on this pricing method. It does seem
that this method has been followed to protect the interests of the OMCs.
This makes sense only when the fuel prices are controlled by the government
and not affected by the international market prices. Experts are of the
opinion that the pricing of fuel needs to be based on the cost borne by the
refineries and their margins. Since most of the petroleum products are
exported, the allocation of 20% towards EPP is not entirely correct.
There are many components that add up to the petrol prices in India.
Customs Duty : It is the tax imposed by the Government of India and
currently hovers around 7.5%
Import Parity Price: It is the combined price of petrol paid by all
oil marketing companies at the port.
Free on-board price : When oil marketing companies purchase crude
oil from international markets, it is called free on-board price
Refinery Transfer price : Price paid by oil marketing companies to
transfer crude oil to refineries
Inland Freight : Transportation cost paid by oil marketing
companies to transfer petrol from refineries to retail outlets
Depot Price : Owners of retail outlets need to pay a fee to buy
petrol or diesel from oil marketing companies
Freight : Transportation cost for purchase of crude oil from
overseas by oil marketing companies
Import charges: There are few charges that make up the Import
charges. Insurance, port dues, ocean loss are some of them
Excise Duty: Duty imposed by the Central Government for importing
The above components make up the petrol price in Mumbai. Almost 40-45% of
the petrol cost is made up of all taxes and dealer commissions.
Mumbai offers the costliest petrol in the country as compared to other
state capitals. It made history a few weeks back when the petrol price
crossed Rs. 90 per litre. Delhi has the lowest price for fuel bordering the
Rs. 80 mark. Patna and Bhopal also have high prices of petrol wherein the
prices hover in the range of Rs. 87 to Rs. 89 per litre. The cheapest
petrol is sold in Port Blair (Rs. 70-74), Panjim (Rs.75 – 78) and Agartala
In the last one year or so, our model of calculating petrol prices have
been revised. The Dynamic Fuel pricing model has been introduced by the
Government of India. Under this model, the petrol price is directly linked
to the international price of oil. It is now revised on a daily basis in
line with the international prices. The fortnightly revision has been done
with. This system brings about transparency in the calculation of petrol
price and reduces the influence of the government and political parties.
The updated petrol price is available at 6am every day. The calculation is
done on the basis of the previous day’s international crude price. The
revision in the price can be tracked through the following manner:
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.
SMS: There is an option of sending a text message to dealer for
(Retail Sale Price) RSP< SPACE >DEALER CODE to 9224992249 (For Indian
For Bharat Petroleum, the number is 9223112222.
For Hindustan Petroleum, you can send an SMS HPPRICEDEALERCODE to
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
One of the most important benefits of the Dynamic Fuel pricing system is
the speed at which the change in international prices is reflected on the
petrol price to the end consumer. This happens within a day now instead of
a fortnight earlier. The benefit of a reduced crude oil price can now be
immediately passed onto the end consumer within a day instead of waiting
for a 2 week period.
This model of pricing is at par with the methods followed in many of the
advanced countries. The transparency at which the rates are determined with
very little influence from the Government makes it very attractive.
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.
There are many taxes, duties and VAT applicable on the fuel price today. It
has not yet been included under the GST scheme. There has been a widespread
push for including the petrol price under the GST. However, the Government
is mulling over a partial inclusion only. This may lead a higher price than
what it is today due to the 28% slab and the state added VAT. There has to
be a conscious decision taken by both Central and State Government to make
fuel more affordable to the common man.
Cashback on Fuel Cards: One can easily save expenses on petrol by using the credit/debit cards that
are co-branded with the Oil Marketing Companies through their cashback
schemes. Surcharge waivers are also a regular feature with these cards.
Some of these cards are ICICI Bank HPCL credit card, BPCL SBI Credit card
and HDFC All Miles credit card.
Electric cars:Electric cars are a good alternative to the motor vehicles using fuels like
petrol and diesel. Though this concept is relatively new in India, there is
a widespread interest in using electric vehicles. 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:This is a very good option for office-goers and other daily commuters as it
reduces your monthly expenses as well as decreases the congestion and
pollution 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:Leading cab services like Uber and Ola have introduced the option of
ridesharing. You can share the ride with a fellow rider who is also going
to the same area. This helps in sharing the expense as well as reduces the
number of vehicles on the road.
1.Why does Mumbai have a high rate of petrol price?
The VAT slab charged by the State Government of Maharashtra is quite high
at 39.12%. There are two VAT slabs prevailing in the state now. This is one
of the major reasons for a high petrol price in the city.
2.How frequently is the petrol price revised?
Under the new pricing model, the petrol price is revised on a daily basis
and the updated rate is available at 6am.
3.Is petrol included under the GST scheme?
No, currently petrol is not included under GST.
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