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Petrol Price In Pune

04 April 2020

Date

Petrol Prices

Change

  • 2020-04-04

    ₹ 75.06 /L

  • 2020-04-03

    ₹ 75.06 /L

  • 2020-04-02

    ₹ 75.06 /L

  • 2020-04-01

    ₹ 75.06 /L

  • 2020-03-31

    ₹ 75.06 /L

  • 2020-03-30

    ₹ 75.06 /L

  • 2020-03-29

    ₹ 75.06 /L

  • 2020-03-28

    ₹ 75.06 /L

  • 2020-03-27

    ₹ 75.06 /L

  • 2020-03-26

    ₹ 75.06 /L

  • 2020-03-25

    ₹ 75.06 /L

  • 2020-03-24

    ₹ 75.06 /L

  • 2020-03-23

    ₹ 75.06 /L

  • 2020-03-22

    ₹ 75.06 /L

  • 2020-03-21

    ₹ 75.06 /L

  • 2020-03-20

    ₹ 75.06 /L

  • 2020-03-19

    ₹ 75.06 /L

  • 2020-03-18

    ₹ 75.06 /L

  • 2020-03-17

    ₹ 75.06 /L

  • 2020-03-16

    ₹ 75.06 /L

  • 2020-03-15

    ₹ 75.22 /L

  • 2020-03-14

    ₹ 75.34 /L

  • 2020-03-13

    ₹ 75.47 /L

  • 2020-03-12

    ₹ 75.60 /L

  • 2020-03-11

    ₹ 76.05 /L

Petrol Prices in Pune

Pune is called as the Queen of the Deccan and is the cultural capital of Mahrashtra. A growing cosmopolitan city, it is well known for educational institutions, theatre and art. In 2017, the population of the city was 34lacs. Pune is spread over an area of 331 square kilometres.

Pune is the 8thlargest metropolitan economy in the country and has the 6thhighest per capita income. The main industries present here are in education, manufacturing and IT/ITES. The city is also emerging as start-up hub especially in the IT field. It has also been the single largest hub for German companies to set up their business in India.

Transport Infrastructure in Pune

Pune is a growing metro city in India. With the growing population, the demands of a stronger transport infrastructure has only increased.

The city is widely dependent on the fleet of intra-city buses which is pocket-friendly and easiest option. There are many cab services that help you reach your destination quickly. The good old rickshaw services are best when you have to travel short distances or need to go to the old part of the city. The city has been seeing many new flyovers and underpasses to ease out the traffic congestions.

Even though there are many public transport options, many citizens prefer using their own vehicle to move around. The number of registered vehicles in Pune is 3.62 million as of April 2018. For the first time, the number of vehicles have overtaken the human population.

The petrol price has also been increasing in the city. It is about Rs. 87 per litre and is expected to go further up in the near future. The analysis of petrol pricing in the city of Pune can be noted below.

Why are petrol rates so high in Pune?

In the beginning of 2018, the petrol price was in the region of Rs. 77 to Rs. 78 per litre. Today, it has registered a steep increase to Rs. 87 per litre. There are many factors that govern the petrol price.

The international trade scenario has been very volatile in the recent past. Trade wars and geo-political tensions has had a bad influence on global trade and thereby, has affected the fuel prices too.

The petrol price in India is largely governed by the crude oil price internationally. We import crude oil to process it into many petroleum products. The supply of crude oil is controlled by the OPEC countries (Organization of Petroleum Exporting Countries). When the production and supply is restricted, the demand increases and therefore, the prices go up.

The Central Government charges duties and taxes on the import of crude oil. The State Government charges VAT on fuel prices. All of these add to the final cost of petrol, making it quite expensive.

The petrol price in Pune has increased by more than Rs. 10 per litre since the start of the year.

Pricing mechanism of Petrol in India

The Retail Selling Price of petrol (RSP) is determined by a complicated and long drawn process. There are many elements that add up to the final price of petrol, that is, the RSP. The Oil Marketing companies like IOCL, BPCL and HPCL use the Trade Parity Pricing method to calculate the RSP. This method assumes that 80% of the fuel is imported into our country and 20% is exported. The import parity price is 80% and 20% constitutes the Export parity price.

Export Parity Price: When the OMCs export the processed petroleum products, the earnings received is treated as the Export Parity Price. It also includes the FOB and ALB (Advance License Benefit). At present, ALB is nil as the Government of India 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.

This pricing method has been criticized on many accounts. It seems that this method has been adopted to protect the commercial interests of the OMCs and PSUs in this sector. Also, this methodology made sense only when the prices were controlled internally and not affected by the international prices. Today, the petrol price is directly linked to the crude oil price prevailing in the global market. Therefore, the pricing mechanism should be based on the cost borne by the refineries and their margins. It also needs to take into account crude oil sourcing, refining capacity, operational efficiencies, marketing expenditure and other related costs. Another point in this process is that India exports most of its petroleum products and therefore, allocating 20% weight to the EPP is not entirely correct.

Components of petrol prices in India

There are many components that add up to the petrol prices in India.

FOB: This is the purchase price of petrol. The crude oil is bought by the oil marketing companies at this rate from the international market.

Customs Duty: Tax levied by the Government of India on the import of crude oil.

Import Parity Price: This price is paid by the OMCs at the port to bring in the crude oil. It mainly consists of import charges, customs duty and freight cost.

Refinery Transfer price: The oil marketing companies need to pay the refineries the cost of transferring petrol there.

Inland Freight: This is the transportation price paid by the OMCs for moving the fuel from the refinery to the retail outlets.

Depot Price: The owners of the retail outlets pay a certain price to buy the fuel from the OMCs.

Freight: The transportation cost of getting the crude oil from the international markets called as freight. This is added to the FOB charge. The combined price is called as cost and freight charges.

Import charges: Insurance, Port and ocean losses make up the Import charges. The premium paid to the insurance provider is called as the insurance charges. Port dues are charges applicable for making use of the facilities at the port.

Excise Duty: The Central Government charges a duty for importing oil into the country. It is a uniform rate charged at Rs.19.48 per litre.

VAT: The State Government charges Value Added Tax on petrol. It differs from state to state.

The above components make up the petrol price in Pune. Almost 40-45% of the petrol cost is made up of all taxes and dealer commissions.

Petrol price in Pune as compared to other cities

Petrol price in Pune has been quite high for the past few weeks. It has been hovering around Rs. 85 to Rs. 87 per litre for a long time. As compared to other cities, it is on the higher side due to taxes levied by the State govt. Mumbai is the most expensive at prices close to Rs. 90 per litre, followed by Nagpur and Nashik. Delhi has the lowest price of petrol in the country at Rs. 82 per litre (approx.). Cheapest petrol is available in Panjim, Port Blair and Agartala.

How frequently are petrol prices in Pune computed?

With the adoption of the dynamic fuel pricing model since 2017, the prices are now linked directly to the international price of crude oil. The price of petrol is now calculated on a daily basis as is the case with the international price of oil and not on a fortnightly basis.

The petrol prices are revised by the dealers and put out to the consumers at 6am every day. This is calculated on the basis of previous day’s cost. The revision in the price can be tracked through the following manner:

  1. Mobile Apps: The Oil Marketing companies have developed easy to use mobile apps to track petrol prices on a daily basis. Fuel@IOC is one such app developed by IOCL. You can download it through the Playstore or the Apple Store and get daily prices of petrol of any city. MYHPCL is another app brought out by HPCL and SmartDrive is managed by BPCL.

  2. SMS: There is an option of sending a text message to dealer for quick updates.

Retail Sale Price) RSP< SPACE >DEALER CODE to 9224992249 (For Indian Oil)
For Bharat Petroleum, the number is 9223112222.
For Hindustan Petroleum, you can send an SMS HPPRICEDEALERCODE to 9222201122.

Benefits of Dynamic Fuel Pricing

The dynamic fuel pricing model has been in effect for more than a year in India. The daily change in price of fuel means any reduction in the international price of oil will affect the final price of petrol/diesel for the end consumer. In the case of reduction, it will benefit the consumer within a day’s time. If the oil price increases, it will too get passed on to the consumer in a day’s time. The wait period of a fortnight no longer exists. This method has brought India to an international standard of fuel pricing. One of the biggest benefits of this method is for the oil marketing companies like IOC, BPCL etc.as they are cushioned against the volatile changes in the international market.

Overall, this method does benefit everybody in the chain of consumption of petrol. The smallest change in the price of crude oil can be passed onto the common man in a day’s time. Also, a retail outlets closer to the supply station of petrol/diesel will be able to charge lesser rate due to advantage in lower transportation cost.

GST and Petrol Prices in Pune

Under the new tax regime of GST, petrol and petroleum products are not included. Petrol price is subjected to multiple taxes and makes it expensive for the common man. There is a wide speculation that it should be brought under the gambit of GST to make it more affordable. GST on fuel is a policy that is followed by many countries. There is also a thought that the Central Government might not be in favour of this change as it will affect the revenues badly.

Ways to save Petrol Cost

Cashback on Fuel Cards: One of the quickest and easiest way to save your fuel expenses. Most leading banks offer co-branded credit/debit cards with the Oil Marketing Companies. This helps in surcharge waivers and enables you to make use of the cashback facility at most fuel bunks. 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 an excellent alternative to the fuel driven motor vehicles. Though this is a relatively new concept in India, many have warmed up to the idea. The maintenance cost is said to be much lower than the regular cars. With proposals of battery charging stations that could be set up across the country, this could become a reality soon.

Car Pooling:If you are a daily commuter to work or school/college, car-pooling is a good option. It will keep your monthly fuel expense down as well as reduce the pollution by taking off cars from the road.

Cycle to work:Cycling to work has been borrowed from the western culture. Many companies are promoting this option with its employees to reduce the stress of driving and spending time on the road. It also comes with health benefits.

Ridesharing:Most of the popular cab services offer the option of rideshare. This means you get to share your ride with another traveller who is going in the same direction. This helps in reducing your total cost of traveling as well as indirectly helps in reducing pollution on the road. This is an on-demand service and can be booked easily through your mobile phone.

FAQs

1. What constitutes the retail price of fuel?

Import cost, central government excise duty &taxes, state government charged VAT, operating costs and margins make up the retail price of petrol.

2. How does the weakening rupee affect the price of petrol?

The world’s crude oil market is traded in US dollar. So, any change in the exchange rate with the US dollar will directly affect the purchase price of crude oil.

3. What is the Dynamic Pricing Model?

Under this pricing method, the fuel price is revised on a daily basis and the new prices are put up at 6am.

4. Is petrol included under the GST scheme?

No, currently petrol is not included under GST. However, there is a common thought that it must be brought under the purview of GST to reduce the petrol price.

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