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Todays Petrol Price

26 September 2020

₹ 87.70

Current Petrol Per Liter

Petrol Prices in Metro Cities

Petrol Price In Nagpur

26 September 2020

Date

Petrol Prices

Change

  • 2020-09-27

    ₹ 87.70 /L

    ₹ 0.00 /L

  • 2020-09-26

    ₹ 87.70 /L

    ₹ 0.00 /L

  • 2020-09-25

    ₹ 87.70 /L

    ₹ 0.00 /L

  • 2020-09-24

    ₹ 87.70 /L

    ₹ 0.00 /L

  • 2020-09-23

    ₹ 87.70 /L

    ₹ 0.00 /L

  • 2020-09-22

    ₹ 87.70 /L

    ₹ -0.07 /L

  • 2020-09-21

    ₹ 87.77 /L

    ₹ 0.00 /L

  • 2020-09-20

    ₹ 87.77 /L

    ₹ 0.00 /L

  • 2020-09-19

    ₹ 87.77 /L

    ₹ 0.00 /L

  • 2020-09-18

    ₹ 87.77 /L

    ₹ -0.25 /L

  • 2020-09-17

    ₹ 88.02 /L

    ₹ -0.14 /L

  • 2020-09-16

    ₹ 88.16 /L

    ₹ 0.00 /L

  • 2020-09-15

    ₹ 88.16 /L

    ₹ -0.17 /L

  • 2020-09-14

    ₹ 88.33 /L

    ₹ -0.13 /L

  • 2020-09-13

    ₹ 88.46 /L

    ₹ 0.00 /L

  • 2020-09-12

    ₹ 88.46 /L

    ₹ -0.13 /L

  • 2020-09-11

    ₹ 88.59 /L

    ₹ 0.00 /L

  • 2020-09-10

    ₹ 88.59 /L

    ₹ -0.08 /L

  • 2020-09-09

    ₹ 88.67 /L

    ₹ 0.00 /L

  • 2020-09-08

    ₹ 88.67 /L

    ₹ 0.00 /L

  • 2020-09-07

    ₹ 88.67 /L

    ₹ 0.00 /L

  • 2020-09-06

    ₹ 88.67 /L

    ₹ 0.00 /L

  • 2020-09-05

    ₹ 88.67 /L

    ₹ 0.00 /L

  • 2020-09-04

    ₹ 88.67 /L

    ₹ 0.00 /L

  • 2020-09-03

    ₹ 88.67 /L

    ₹ 0.97 /L

Petrol Prices in Nagpur

Dubbed Orange city because of its orange produce, Nagpur is an Indian Metropolis. It lies within the state of Maharashtra on the Deccan Plateau and is the winter capital of the state.

Transport infrastructure in Nagpur

Nagpur has a well maintained network of roads which are kept decongested by their very architecture. Connected to the four major Metropolitan cities of India – Delhi, Mumbai, Chennai, and Kolkata – by road, air, and rail, the city lies at the epicentre of the country. The most popular form of public transport is auto rickshaws which ply in most parts of the city. Nagpur also has a good network of public busses. Situated at the junction of two major national highways - NH 7 from Kanyakumari to Varanasi and NH-6 from Hajira to Kolkata – as well as two major Asian Highways – AH43 (Agra to Matera, Sri Lanka) and AH46 (Kharakpur to Dhule) – the city witnesses considerable traffic at all times of the day and night. The city is also connected to Mumbai – the state capital – and other metros and cities of India via a network of Highways and expressways. The upcoming NH-26B (Savner-Chhindwara-Narsinghpur) will complete the connectivity of the city by linking North India into the network of roadways passing through Nagpur.

Why are petrol rates so high in Nagpur?

Nagpur has a high demand for vehicle fuel – petrol and diesel – because of its unique location and the fact that it is a hub where several national, state, and Asian highways interconnect. This is one of the major factors contributing to the high price of petrol in the city. Apart from the usual factors such as fluctuation in price of crude oil and currency rates, the unusually high demand for fuel is the biggest reason why the price of petrol is nudging the 90 rupee mark. Here is a quick look at the prices in September 2018:

TimeLinePetrolDieselDifference in Petrol and Diesel Price
Current91.2378.7912.44
1 Month86.8875.511.38
6 Month81.8368.3413.49
1 Year75.4158.5816.83

Pricing mechanism of petrol in India

Petrol is made from crude oil which India imports from the petroleum manufacturing countries – the OPEC. These countries export oil not only to India but also to other countries. The international forces of demand and supply as well as the international political situation determine the price of crude oil. This forms the basis of the pricing mechanism for petrol in India.

India also exports petrol to some countries. The price of petrol is computed by a complex formula that assigns 80% weightage to Import parity – that is to say 80% of the price comprises of import costs – and 20% to export parity.

Critics of this method of computation argue that extremely low weightage is being given to revenue from exports. According to them, the price should be determined by actual costs incurred by the refineries plus their profit margin. They claim that the parity method worked well as long as the industry was under government control. However after decontrol, the price should be determined by natural market forces of a capitalist economy.

Components of petrol prices in Nagpur

The price of any product is computed as the cost incurred in manufacturing it plus the profit margin of the manufacturer. This price is loaded by the cost of transportation, the profit margin of the distributor, and the profit margin of the retailer. The pricing of petrol however, is somewhat more complex because of the fact that the raw material required for manufacture must be imported. Also the equipment required for manufacture of petrol and diesel is expensive. Setting up retail outlets – pumping stations – also requires heavy investment. These facts make the pricing of petrol and diesel a complex process. Here are some of the components that comprise the price of petrol –

FOB (Free Onboard Price) – the price paid by the oil companies to purchase crude oil from importers.

Custom Duty – Tax imposed by the government on import of crude oil and other products.

Import Parity Price (IPP) – the sum total of price and charges paid by the oil companies at the port. It includes custom duty, freight, and port charges.

Refinery Transfer Price – This is the price at which the OMC pays to the refinery for purchasing petrol. It includes all the manufacturing costs of petrol as well as inland freight.

Inland Freight: It is the cost of transporting oil from the refinery to the retail outlet.

Depot Price – The price that pumping stations pay to OMCs for petrol.

Freight – Once crude oil reaches the port it must be transferred to the refineries. The cost incurred for this is called freight. It is added to FOB together they comprise the cost and freight of oil.

Import Charges – The cost of importing oil includes freight insurance, port dues, and ocean losses.

Excise Duty – A cess levied by the central government on import of petrol and petroleum products including crude oil. Currently it stands at 19.48 per litre.

VAT – Value Added Tax is imposed by state governments on sale of petrol. It varies from state to state.

It is worth a mention that of all the factors that comprise the price of petrol, nearly 45% consists of various taxes and cess levied by the government. Statics show that this component has more than doubled in the past 4 years alone. Since taxes are computed as a percentage of the value of petrol, a hike in the price of petrol – or crude oil – means higher taxes.

Petrol price in Nagpur as compared to other cities

Nagpur ranks among the costliest cities in India in terms of petrol price. The price has shown a general upward trend with retail price per litre of petrol hovering around INR 90 per liter. The price of petrol in orange city ranks 49th at the national level and 30th at the state level.

How frequently are Petrol Prices in Nagpur Computed?

India has recently adopted the dynamic pricing model for petrol pricing. Under this model oil companies compute the price of petrol every day and post the daily price on their websites. There are other channels available to learn the current price of petrol.

APP

Every oil company has its own app which flashes the daily price of petrol. If you prefer to purchase your fuel from a particular OMC, you can download the respective app on your smart phone or iOS or Windows mobile to stay updated. These apps are available on Google Play store and Apple store.

SMS

OMCs also offer a free SMS service by which they will message you the retail price of your preferred pumping station. Simply type RSP followed by a space and the dealer code of the pumping station to verify the price. The dealer code is prominently displayed at pumping stations.

WEBSITE

Each OMC posts the latest price of petrol on their website. They also offer a lot more information with respect to fuel and its price.

Benefits of Dynamic fuel pricing

The dynamic pricing model recently adopted by the government of India and OMCs has several advantages –

  • It passes the benefit or burden of daily fluctuation in price of crude oil to the consumer immediately.

  • It passes the effect of daily fluctuation in currency exchange rate to the consumer on the same day.

  • It brings transparency into the pricing since OMCs are required to post the daily price of fuel on their website and convey it to their customers via other channels.

  • It discourages speculation, hoarding, and other malpractices.

GST and petrol prices in Nagpur

Petrol and fuel remain unaffected by the recently introduced Goods and Services Tax. These commodities therefore still labour under the traditional sales tax, excise duty, and VAT. Nearly 50% of the petrol price is comprised of tax. Community leaders are therefore pushing to bring fuel under the purview of GST which they claim will stabilize the price of petrol considerably.

Diesel prices in Nagpur

Like petrol, diesel prices in Nagpur too show an upward trajectory. The following table shows the recent trends in price of diesel and petrol in Nagpur. The table shows data as on 13th October, 2018.

TimeLine

Petrol

Diesel

Difference in Petrol and Diesel Price

Current

91.23

78.79

12.44

1 Month

86.88

75.5

11.38

6 Month

81.83

68.34

13.49

1 Year

75.41

58.58

16.83

Cash backs on fuel cards

In an effort to support the Indian population – most of which hovers around the poverty line – banks and other financial institutions have launched fuel cards that offer users credit for purchase of fuel. User can also avail waiver of surcharge or cash back of 5% on the price of petrol.

Other ways to save petrol cost

Looking at the steeply rising cost of fuel, the depleting oil reserves, and the keen competition among nations to secure crude oil, it becomes necessary to look for alternative methods to save on fuel expenditure.

Electric Cars

Already popular in many western countries, Indians are gradually warming to the idea of electric cars. The first Electric Vehicle Company has already begun exploring options and experimenting with electric cars in Bangalore. In the next 5 years India hopes to see many more electrically powered vehicles plying the roads.

Car Pooling

As businesses prosper so do their employees. Owning a vehicle is a necessity rather than a luxury for the new generation. However the viability of maintaining more than one vehicle per family has yet to be seen. With the rising prices of petrol, not many can afford to drive to work every day. Carpooling comes to their aid with app based cars running point to point shuttles in several major cities. Also if you happen to be travelling in the same direction as your neighbour, why not share a car?

Cycle to Work

Do you visit the gym after work? You can save yourself a pretty penny not only in terms of gym fees but also petrol prices. Cycling to work - if you live close enough that is – is a great alternative to your daily gym – and it is cost effective too.

Frequently asked questions

(1) What is the Dynamic Pricing Model?

The dynamic pricing model is a recently adopted model for computation of petrol prices. The price under this new model is computed daily as against the traditional fortnightly computation.

(3) What are various taxes levied on the petrol prices?

The central government levies excise duty at 19.48 per litre on petrol. The state government levies VAT or value added tax. Currently VAT is levied at 26% in Maharashtra.

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

If fuel is brought under the purview of GST, there will be considerable drop in the price of petrol. Currently excise duty at 19.48 per litre and VAT as determined by the various state governments is levied on petrol. Once it comes under the purview of GST, the only tax applicable would be 18% GST.

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