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Todays Petrol Price

20 September 2020

₹ 82.75

Current Petrol Per Liter

Petrol Prices in Metro Cities

Petrol Price In Pondicherry

20 September 2020

Date

Petrol Prices

Change

  • 2020-09-20

    ₹ 82.75 /L

    ₹ 0.00 /L

  • 2020-09-19

    ₹ 82.75 /L

    ₹ 0.00 /L

  • 2020-09-18

    ₹ 82.75 /L

    ₹ -0.26 /L

  • 2020-09-17

    ₹ 83.01 /L

    ₹ -0.15 /L

  • 2020-09-16

    ₹ 83.16 /L

    ₹ 0.00 /L

  • 2020-09-15

    ₹ 83.16 /L

    ₹ -0.17 /L

  • 2020-09-14

    ₹ 83.33 /L

    ₹ -0.14 /L

  • 2020-09-13

    ₹ 83.47 /L

    ₹ 0.00 /L

  • 2020-09-12

    ₹ 83.47 /L

    ₹ -0.13 /L

  • 2020-09-11

    ₹ 83.60 /L

    ₹ 0.00 /L

  • 2020-09-10

    ₹ 83.60 /L

    ₹ -0.09 /L

  • 2020-09-09

    ₹ 83.69 /L

    ₹ 0.00 /L

  • 2020-09-08

    ₹ 83.69 /L

    ₹ 0.00 /L

  • 2020-09-07

    ₹ 83.69 /L

    ₹ 0.00 /L

  • 2020-09-06

    ₹ 83.69 /L

    ₹ 0.00 /L

  • 2020-09-05

    ₹ 83.69 /L

    ₹ 0.00 /L

  • 2020-09-04

    ₹ 83.69 /L

    ₹ 0.00 /L

  • 2020-09-03

    ₹ 83.69 /L

    ₹ 0.00 /L

  • 2020-09-02

    ₹ 83.69 /L

    ₹ 0.00 /L

  • 2020-09-01

    ₹ 83.69 /L

    ₹ 0.05 /L

  • 2020-08-31

    ₹ 83.64 /L

    ₹ 0.00 /L

  • 2020-08-30

    ₹ 83.64 /L

    ₹ 0.09 /L

  • 2020-08-29

    ₹ 83.55 /L

    ₹ 0.00 /L

  • 2020-08-28

    ₹ 83.55 /L

    ₹ 0.11 /L

  • 2020-08-27

    ₹ 83.44 /L

    ₹ 0.69 /L

Petrol Prices in Pondicherry

Pondicherry was declared a union territory in 2006 and carved out of the state of Tamil Nadu. The UT gets its name from the Tamil word Puducherry which literally means new city. According to a paper presented by the Home Minister Rajnath Singh in 2016, a “combination of a staggering debt, stagnant tax revenues and rampant misappropriation of funds has throttled the economy of the Union Territory." The report demanded urgent steps to be taken to end corruption.

Transport infrastructure in Pondicherry

Pondicherry has a well-connected network of Air and Rail transport with flights and trains to Mumbai, Delhi, and other major cities of India. It connects with Chennai, the capital city of Tamil Nadu along the east coast via Mahabalipuram. Busses within the city are run by the PRTC (Pondicherry Road Transport Corporation). Express, ordinary, deluxe, ultra-deluxe and low floor busses ply the roads catering to the various needs of passengers. Shared tuk-tuks and app based cars cater to those who shun busses. Rental cars, motorcycles, and scooters are available for visitors to the city. The city has a metro running its length and breadth as well as a railway line. Like in other parts of the country, the new generation has begun investing in private cars and two-wheelers for ease of travel.

Why are petrol rates so high in Pondicherry?

Tourists flock to Pondicherry to view the ancient architecture of its temples and churches or to soak in the sea water on its beaches. Other tourist attractions include the Sri Aurobindo Ashram, the local museum, the French War Memorial, and the local cuisine ranging from French, Chinese, and Thai to south Indian delicacies. Sri Manakula Vinayagar Temple is the oldest temple in the city, in existence from the pre-French era – more than 3.5 centuries old.

With the increased influx of both Indian and foreign tourists as well as the increasing number of privately owned vehicles, there is a healthy demand for fuel in Pondicherry. Price of petrol is escalated by this heavy demand. Crude oil is a depleting resource and there is a high demand for it not only in India but also in other countries. The international market forces therefore push up the price of crude oil – which India imports for manufacturing petrol. Also the flailing rupee against the dollar further adds to the high price of petrol.

Pricing mechanism of Petrol in India

Unlike other products pricing of petrol and other liquid fuel is not a simple matter of adding profit margin to cost. This is because the price of the raw material used in the manufacture of petrol – crude oil – is not only an expensive commodity but also the price of oil is highly volatile. Let us first understand the mechanism and forces that determine the price of petrol.

Oil Marketing Companies (OMC) determine the retail selling price (RSP) of petrol using the trade parity pricing method. Trade parity comprises of two parts – import parity and export parity. Import parity is the cost of bringing a product into the country while export parity is the price of exporting a product. Both import and export parity is computed from location to location. Import parity is applied on the import of crude oil while export parity is applied on the export of petrol. Both import and export parity comprise the following:

Item Element
CIF (Carriage Insurance and Freight)Includes:

FOB cost at point of export

Freight charges to point of import

Insurance charges

Unloading from ship to pier at port Excludes:

Import duties and subsidies

Port charges at port of entry for taxes, handling, storage, agents’ fees, and the like

FOB (Free On Board)Includes:

All costs to get goods on board – but still in harbour of exporting country:

Local marketing and transport costs

Local port charges including taxes, storage, loading, fumigation, agents’ fees and the like

Export taxes and subsidies

Project boundary price

Farm-gate price

The trade parity price for petrol is made up of 80% import parity and 20% export parity. Experts argue that after the decontrol on fuel, the export parity component should be increased since private OMCs export petrol to other countries and this should reflect in the petrol pricing.

However, this method is disputed by many experts. Critics say that this method is used to protect the margins of the Public sector enterprises. It made sense when petrol prices were controlled. Another school of thought says that pricing should be market-related based on cost + profit.

Components of petrol prices in Pondicherry

Price of Petrol in Pondicherry – as in other parts of the country – is made up of the following factors:

Free on-Board Price (FOB): It is the price that an OMC pays to purchase crude oil from the importers. It includes all costs incurred by the seller of crude oil to load the oil onto the ship for export. Importers add custom duty and port charges to this price when quoting to the OMC. Taxes as applicable are also added as well as a profit margin.

Freight:This is the cost of transporting oil from overseas to Indian ports. It is added to the FOB as a part of the importer’s cost.

Import Charges:Import charges comprise FOB + Freight + Freight Insurance + Ocean Losses + custom duty + port dues. It is the cost at which the importer receives oil in his depot.

Refinery Transfer Price:This is the cost of transporting the oil from the port or importers depot to the refinery. This is usually paid by the OMC and included in the FOB.

Depot Price:This is the price that retailers – pumping stations – pay for purchasing petrol from the OMC.

Inland Freight:This is the cost of transporting petrol from the refineries to the pumping station. It is included in the depot price.

Excise Duty:Excise duty is imposed by the central government on all imports. Currently it stands at 19.48 per litre of crude oil imported. It is added to the Import charges to compute the Refinery Transfer Price.

Retail Petrol Price: This is the price at which the retailer sells petrol to the consumer. It includes the Depot price + inland freight + retailer’s profit. Tax as applicable is applied on this price to compute the final price.

VAT:Retailers add VAT to the RPP as applicable from state to state. Currently VAT stands at 25%.

Petrol price in Pondicherry as compared to other cities

Petrol price in Pondicherry shows an upward trajectory. However the prices in this city are lower compared to the rest of the country. While prices in many major metros and cities are nudging INR 90 per litre – and some have already crossed that mark – Pondicherry stands at 71.44 / litre on 15 th of October 2018. The reason is that though the locals are opting for privately owned vehicles, the idea has not yet taken firm hold. There is still a great dependence on public transport – which is considered cheaper and faster. Also the VAT applied by the state is lower as compared to other states. Thirdly, though the influx of tourists does push up the price, being a small city the total demand is low compared with other cities and states in India. Nonetheless, there has been a steady rise in the price of petrol in Pondicherry.

How frequently are Petrol Prices in Pondicherry Computed?

The price of petrol is computed by the OMCs. The government of India has recently taken a decision to adopt the dynamic pricing model for petrol pricing. This is applicable to all OMCs and all states. Each day the RPP is declared by the OMCs on their website. You can find out the RPP of a specific dealer using the following channels -

1) App

Almost every OMC has an app which you can download on your iPhone or smart phone. The app flashes the daily RPP as well as provides a host of other related information. The apps for the 3 government owned OMCs are –

  • Indian Oil - Fuel@IOC

  • BPCL - SmartDrive

  • HP’s - MYHPCL

2) SMS

Send an SMS to the number of the respective OMC to know the RPP of an individual retailer. Simply type RSP and send it to the respective number. Dealer codes are prominently displayed at all pumping stations. If you happen to cross a station where the dealer code is not displayed, you can enquire with the dealer or call the customer care number of the respective OMC and report the issue. The numbers for the government owned OMCs are -

  • For Indian Oil - 9224992249

  • For Bharat Petroleum - 9223112222.

  • SMS for HPCL 9222201122

3) Website

You can access the daily petrol prices for Pondicherry on the OMC website. The websites list the RPP of each dealer. Most websites have a locator feature to help you find a specific dealer.

Benefits of Dynamic fuel pricing

The new pricing model was adopted with a view to passing on the minutest fluctuation in the international price of oil to the dealers and thence to the consumers of petrol. Under the old model, consumers witnessed sudden and dramatic fluctuations since prices were revised only every fortnight. Also speculation was rife under the fortnightly model of computation.

The new model has put India at par with other countries that use the dynamic pricing model. It has put a stop to speculation and other malpractices. It has also brought much needed transparency into petrol pricing, aligning the consumer to the fuel market.

GST and petrol prices in Pondicherry

Fuel has yet to be brought under the realm of GST. This fact is opposed by many who claim that maintaining the traditional taxation system of levying sales tax and VAT on the price of petrol pushes up the already high price further. Road cess at INR 8 per litre has further added to the burden of tax. Also since VAT is levied by the state government wide variations can be seen in petrol prices across the country. Even though excise duty has been reduced considerably, taxes still comprise nearly 50% of the petrol price.

These factors have caused many to demand that petrol and fuel be brought under the purview of GST which will make the tax uniform. Rumour has it that the highest slab of GST at 28% will be applied to fuel an addition to state levied VAT.

Diesel prices in Pondicherry

As petrol prices in Pondicherry and the rest of the country soar, diesel is not far behind. Though cheaper than petrol it is nonetheless a high priced commodity because of its dependence on availability of crude oil as well as other factors impacting the price of petrol.

Cash backs on fuel cards

One way to obtain relief from the high pricing of petrol and other fuel is to use Fuel Cards. Using these cards – issued by banks and other financial institutions – you can get a rebate on your purchase of fuel. The offer is linked to certain credit and debit cards. Amount of rebate ranges between 5 to 10% and is available as a cash back offer. The cards – nicknamed fuel cards – earn you a rebate each time you top up your fuel.

Some of the popular fuel cards include ICICI Bank HPCL Credit Card, BPCL SBI Credit card, Standard Chartered Super Value Titanium Credit Card and HDFC All Miles Credit Card.

Other ways to save petrol cost

Apart from fuel cards, there are many other ways in which you can economize on your fuel costs -

Electric cars:Inspired by the west, India is warming up to the idea of electric cars. These cars run entirely on electricity eliminating the need for fuel. A Bangalore based vehicle company claims that India will have 10,000 electric vehicles plying the roads in the next 5 years.

Car Pooling:Since global warming hit the world, efforts have been underway to reduce pollution and smog. Carpooling will not only save your fuel cost but will also contribute towards a healthier and pollution free environment. Sharing your car with your neighbour will earn you goodwill too besides giving you company on the way to and from work.

Cycle to work:This idea has taken hold in many cities and towns across the country. The cycles are especially designed for speed. Apart from saving expenditure on fuel, cycling to work is a great way to workout – and will also save on gym fees. Better health means lower medical expense.

Ridesharing:Most app based cars and private taxi services offer point2point shuttles within the city. These shared rides are cheaper than taxi fares, offer convenience, and save you the trouble of driving to work.

Frequently asked questions

(1) What is the Dynamic Pricing Model?

Under this model the price of fuel is computed daily unlike the traditional fortnightly model where the price was computed every 2 weeks.

(2) Where can I check the daily rates of petrol?

The daily rate of petrol can be accessed through App, SMS service or on the website of public sector oil providers like Indian Oil.

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

Taxes levied on petrol include central excise and VAT.

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

Petrol prices are outside the scope of GST; however, it may be included in it in future along with the VAT

(5) How can I save money on petrol in Pondicherry?

Though biking is a popular sport and tourist activity in Pondicherry, the concept of cycle to work has not taken hold. An initiative to encourage this practice will go a long way in saving fuel costs and improving the health of the locals.

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