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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 Pondicherry
08 April 2020
₹ 68.80 /L
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.
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.
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.
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
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:
FOB cost at point of export
Freight charges to point of import
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
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
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.
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 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.
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 -
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
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
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.
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.
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
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.
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.
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.
(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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