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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 Noida
04 April 2020
₹ 72.01 /L
₹ 72.14 /L
₹ 72.21 /L
₹ 72.34 /L
₹ 72.45 /L
₹ 72.80 /L
Noida is a popular city in Uttar Pradesh which is considered the corridor
for business and trading. It connects Delhi, Gurgaon and other cities with
which robust business activity is conducted. The growth in the city’s
prospects have increased the number of registered vehicles in the city. The
increase in the vehicles has resulted in increased consumption of fuel in
Noida. The large vehicles registered in Noida has increased substantially.
With the increase in disposable income, there has been an increase in
aspirational buying as well. The population of two wheeler and cars has
increased. Although, there has been Government initiatives to improve the
public transport system and cater to the increasing demand, individuals
prefer to use their private vehicles for transportation within the city.
Noida has oil marketing companies such as Indian Oil, Hindustan Petroleum
and Bharat Petroleum which have established petrol pumps at strategic
locations. The city is well networked with petrol pumps to ensure that the
supply of fuel is adequate.
With the increase in vehicles, there has been increase in fuel consumption.
Unfortunately, fuel production cannot seamlessly increase with the increase
in demand. The basic raw material which is crude oil is one of the largest
commodity imports for India. The production cuts by OPEC nations along with
the depreciating rupee has created cost pressures which reflects in the
increase in petrol and diesel prices.
The opening price of petrol per litre in Noida as of January, 2018 was Rs.
73.51, it has been on an upward trend ever since. By the end of first
quarter, the price was Rs. 74.53 per litre (closing price of March, 2018).
The price maintained an uptrend; however, it had only moved marginally. The
second quarter saw a more severe uptrend, citing the production cuts
announced by OPEC Nations, the highest price for June 2018 was Rs. 78.79
per litre. The petrol prices peaked in the month of September 2018, the
price of petrol per litre as of 25 September 2018 was Rs. 82.42, the price
as of 23 October, 2018 is Rs. 78.97 per litre. The downtrend has
been due to the Government intervention, the relief was provided to the
extent of Rs. 2 per litre after the petrol prices peaked in September 2018.
However, experts are of the view that the global cues remain weak, hence,
the relief would be short lived. The petrol prices may reverse upwards over
the rest of the year.
India has adapted to the dynamic fuel pricing mechanism in June 2017, this
has allowed the Indian OMCs to revise the petrol prices on a daily basis.
This replaced the earlier system where the price was revised on a
fortnightly basis. Most of the developed nations follow the dynamic fuel
pricing mechanism which offers better transparency to the fuel pricing
system. Also, it promotes free trade economy, the petrol and diesel prices
now reflect the movement of crude oil prices.
The dynamic fuel pricing mechanism offers immense benefits to the Indian
OMCs, some of the advantages for the Indian economy and Indian OMCs are
mentioned below -
Increased transparency of fuel pricing
Reduced Government intervention
Reduced loss incurrence by Indian OMCs due to their ability to
revise prices on a daily basis
Reduces working capital reserve to conduct day-to-day activities by
Promotes free trade economy
Interlinks the local petrol and diesel prices to movement in
international crude oil prices and exchange rates
With the advent of dynamic fuel pricing in June 2017, the prices are
revised on a daily basis. This method offers many benefits to the fuel
consumers, dealers and most importantly oil marketing companies. The fuel
price revision is done every day at 6 a.m. and the tech enabled petrol
pumps have the auto-updation system, for those petrol pumps which are not
tech enabled, there is a requirement for manual intervention. The Indian
oil marketing companies will affix the petrol prices after carefully
considering the trend in crude oil prices and currency exchange rates
(particularly INR against USD). This method of tracing the petrol prices
back to the major cost centers is termed as ‘marked to market’. The dynamic
fuel pricing system enables the Indian OMCs to instantly transfer even the
slightest cost pressure or variation in crude oil prices and currency
exchange rates on a daily basis. The new system is fairly transparent and
eliminates the intervention of Government considerably.
There are multiple factors which affect the petrol prices in Noida. They
can be broadly classified as international factors and local factors. The
key factors which play a role in the petrol pricing are discussed below -
International factors :
Crude oil prices – Crude oil is the primary raw material used for petrol
and diesel. The cost of crude oil is quoted per barrel. Every barrel
contains 159 litres or 42 US gallons of crude oil, as of today the per
barrel cost is $79.61 (22 October, 2018). Crude oil is the largest imported
commodity in India. In the year 2016-17, the quantity imported was 213.93
million tonnes for an average fund outflow of Rs 4.7 lakh crore. The import
for the year 2017-18 is pegged at 219.15 MT, the cost is likely to hover
around Rs. 5.65 Lakh crore citing the increase in crude oil cost. The crude
oil prices have been on the rise since the onset of 2018, primarily due to
the production cuts announced by OPEC nations.
Currency exchange rates – Crude oil imports are settled in US dollars; the
rupee depreciation has impacted the cost of raw materials. There has been
atleast 10% depreciation of rupee over the past 10 months, which has
impacted the cash outflow for raw material procurement for the OMCs. This
has led to a sharp squeeze in gross profit margin.
Local factors :
Freight costs – The transportation costs in terms of logistics, toll, labor
cost for transportation of raw materials from overseas dealers to
refineries and from refineries to petrol pumps have a subtle impact on the
pricing of the end product.
Custom duty – All commodities that are imported are subject to custom duty.
The duty levied on crude oil is 15.5%. This charge is payable to the
customs authority for bringing in foreign products into India.
Import charges – Import charges refers to insurance charges, port charges
and ocean losses. Insurance premium paid to the insurer for risk mitigation
of the consignment is referred to as insurance charges. Port charges are
the temporary usage of dock for stocking inventory and using the transport
vehicles for moving consignment. Ocean losses can be caused by spillage or
pilferage of barrels as they are shipped across from Gulf nations. There is
a reserve created to adjust such losses.
Excise duty and VAT – 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. On
diesel, it was Rs.15.33 per litre. Uttar Pradesh levies a VAT of 32.9% on
petrol which is relatively higher than many other states, however, it is
also starkly lower than 47.94% levied by Maharashtra and 34% levied by
Dealer commission - The petrol and diesel dealers charge a commission of
~7% on a litre of petrol. This is dependent on the petrol price in the
city, within the city and across OMCs the dealer commission would be
similar, but there could be change across cities and States within India.
Many fuel users seek to track the petrol prices in Noida on a daily basis,
considering that they are now revised on a daily basis. There are many ways
in which the user can get the latest petrol price, the website of OMC would
be updated with the latest price, there are other reliable websites which
aggregate the petrol prices across all Indian OMCs operational in Noida.
Alternatively, the user can use the SMS facility and the OMC would send the
latest price in response to the SMS. The OMCs have developed mobile
applications which can be downloaded on smart phones and the required
information can be tracked on a regular basis. As a last resort one can
also visit the nearest petrol bunk where the price per litre of petrol and
diesel will be displayed either digitally or manually.
GST was introduced by Indian Government in July 2017 with an intent to
bring in uniformity of pricing in all goods and services across all the
States and cities. While many goods and services were bought within the
ambit of GST, petrol and other fuels were not brought into the purview as
yet. Hence, there is no direct impact on the petrol prices of Noida by way
of GST. However, many of the ancillary services associated with the
marketing, transportation and distribution of petrol would attract GST and
they would inturn have a subtle effect on petrol prices in Noida.
1. Which Indian OMCs dominate the petrol bunk networks in
HP, BPCL and IOCL are the prominent players in Noida. They command
significant market share in the Noida landscape.
2. What is the VAT levied in Noida on petrol and diesel?
VAT on petrol in Uttar Pradesh is 32.90%; VAT on diesel in Uttar Pradesh is
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