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Petrol Price In Raipur

08 April 2020

Date

Petrol Prices

Change

  • 2020-04-09

    ₹ 70.38 /L

  • 2020-04-08

    ₹ 70.38 /L

  • 2020-04-07

    ₹ 70.38 /L

  • 2020-04-06

    ₹ 70.38 /L

  • 2020-04-05

    ₹ 70.38 /L

  • 2020-04-04

    ₹ 70.38 /L

  • 2020-04-03

    ₹ 70.38 /L

  • 2020-04-02

    ₹ 70.38 /L

  • 2020-04-01

    ₹ 70.38 /L

  • 2020-03-31

    ₹ 70.38 /L

  • 2020-03-30

    ₹ 70.38 /L

  • 2020-03-29

    ₹ 70.38 /L

  • 2020-03-28

    ₹ 70.38 /L

  • 2020-03-27

    ₹ 70.38 /L

  • 2020-03-26

    ₹ 70.38 /L

  • 2020-03-25

    ₹ 70.38 /L

  • 2020-03-24

    ₹ 70.38 /L

  • 2020-03-23

    ₹ 70.38 /L

  • 2020-03-22

    ₹ 70.38 /L

  • 2020-03-21

    ₹ 70.38 /L

  • 2020-03-20

    ₹ 70.38 /L

  • 2020-03-19

    ₹ 70.38 /L

  • 2020-03-18

    ₹ 70.38 /L

  • 2020-03-17

    ₹ 70.38 /L

  • 2020-03-16

    ₹ 70.38 /L

Petrol prices in Raipur

An introduction to Raipur

Raipur is situated in the state of Chhattisgarh in India. It is geographically positioned in the centre-east of India and covers an area of over 226 square kilometres. Raipur is sometimes called “the rice bowl of India” as it is situated near a large plain where large varieties of rice are grown. It is surrounded by the Mahanadi river to the east, dense forests to the south and Maikal hills to the North-West.

As of 2011, there were said to be 1,010,087 people living in the city of Raipur. It has a tropical wet and dry climate. Raipur is said to be the educational hub of the state of Chhattisgarh due to many institutions including IIM, NIT, AIIMS, etc.

Transport in Raipur

The city of Raipur has a good network of public buses that run through various routes within the city. The public bus transport is provided by the Raipur City Bus Limited (RCBL). In addition to this, Raipur Municipal Corporation and Raipur Nagar Nigam Transport Limited (RNNTL) also provide bus services in Raipur with good buses that operate within the city and also connect to the recently developed Naya Raipur. Apart from the good bus services, there are also autorickshaws and taxis that operate within the city. Rental cars are also available for tourists and some of the private companies are Taxi Guide, Clear Car Rental, Bharat Taxi and much more.

Petrol prices in Raipur

The price of petrol in Raipur has been rising steadily. The price of petrol is now around Rs.73.71 per litre which is now cheaper than its record high of Rs.84.33 on the 1st of October 2018.

Why are petrol rates so high in Raipur?

Increasing crude oil prices globally has been the primary reason for this increase in the price of petrol. The OPEC countries have reduced the supply of crude oil which has led to an automatic rise in demand, thereby affecting the petrol price. India is the 3rdbiggest importer of oil in the world. Any change in the supply of crude oil affects the country’s import costs instantly.

There have been continual trade wars and geo-political battles among powerful countries in the world. This has been affecting the overall trade scenario and has an indirect but powerful influence on the fuel prices.

The Rupee has been on a depreciating for a few weeks now. Depreciation of the rupee has made imports expensive and thereby directly affects the base price of major fuels like petrol and diesel.

The Central and the State Governments levy taxes on the sale cost of the fuel which leads to the booming of the price for the end user.

If we were to analyse the petrol price in the last ten years or so, the price has risen many folds over. There has been a 65% increase in the cost in the past decade which is the highest ever recorded and it continues rising.

Pricing mechanism of petrol in India

The petrol pricing mechanism is an elaborate process in India.

The Retail Selling Price (RSP) of petrol has a few components. Trade Parity Pricing methodology is used to calculate the retail price. BPCL, IOCL and HPCL are some of the leading companies in India that market petrol and other refined petroleum products. Since the past few years, the petrol prices have been connected directly to the international crude oil prices. Hence, this method is calculated based upon the assumption that 80% of the fuel is imported in our country and only 20% is exported.

Import Parity Price: The Import Parity Price comprises of 80% of the cost of the petrol. It consists of the FOB, Customs, Ocean Freight, Port charges and Insurance. The total cost is paid at the port by the importers.

Export Parity Pricing: This price is what the Oil Marketing Companies finally earn. It also includes the FOB and ALB for duty free import of the crude oil. The ALB amount is presently zero as the Government has taken off the Customs Duty of Crude Oil from 2011 onwards.

This pricing mechanism is debatable for few reasons. It seems that this method has been used 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 impacted by the international prices. Today, the petrol price is directly linked to the crude oil price existing in the global market. Therefore, the pricing mechanism should be based on the price borne by the refineries and their margins. It also needs to consider 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 right.

Components of petrol prices

There are multiple factors which affect the petrol prices in Raipur. The key factors which play a role in the petrol pricing are:

FOB: This is the purchase cost of petrol. The OMCs buy crude oil from international oil dealers for this price.

Customs Duty: The import of crude oil is charged as customs duty that is levied by the Central Government.

Import Parity Price: Borne by the OMCs, they need to pay the Import Parity Price at the port for getting the crude oil into the country. This mainly comprises of import charges, customs duty and the freight cost.

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

Inland Freight: The OMCs bear the price of transportation of petrol from refineries to the retail outlets.

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

Freight: It is the price of transporting crude oil from the international dealers to the country. This cost is added to the FOB charges. The total price is then referred to as the freight charge.

Import charges: Insurance, port and ocean losses comprise of the Import charges. The premium paid to the insurance provider is known as the insurance charges. The usage of port facilities is charged as Port Dues.

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

VAT: The Value Added Tax is charged by every State Government. This differs from State to State.

Petrol price in Raipur as compared to other cities

The price of petrol in Raipur is high as compared to other major Indian cities. Mumbai has the highest per litre price of petrol, followed closely by Delhi. Chandigarh claims to have the lowest per litre price of petrol.

How frequently are Petrol Prices in Raipur Computed?

India previously followed the fortnightly model of petrol price computation. The factors that make up the price of petrol were added to arrive at the Retail Selling Price. Since 2016 the fortnightly model has been cancelled in favour of the new dynamic model under which the computation is done daily. The newly computed price is posted on the website of the various OMCs every day at 6 AM.

This model has the benefit of passing on fluctuations in the price of crude oil as well as currency rates to the consumer instantly. It also brings transparency into the pricing and discourages malpractices such as speculation and hoarding. The following channels are available to learn the current day price of petrol.

1) Mobile Application

Most OMCs have their own mobile app which you can download on your Android, iOS, or Windows phone and check the price in the app.

2) SMS Services

In reply to an SMS the OMCs will send you the daily price of petrol as per their computation. Type in RSP followed by the dealer code to know the price of a specific dealer.

3) Online Portals

Every oil company displays the price of petrol on their website every day at 6 AM. Most websites also show historical rates, graphs, trends and more. Simply visit the respective website and explore to know the price of petrol and more.

Note: Petrol prices may vary slightly from company to company and dealer to dealer because of varying commissions and profit margins.

Benefits Of Dynamic fuel pricing

One of the biggest benefits of Dynamic Fuel Pricing is the advantage of international prices being passed onto the end consumer every day. Earlier, the petrol price revision used to happen only once in fourteen days. If there is a change in the international oil price, the benefit of that price would reach only the consumer only after 2 weeks. The dynamic fuel pricing is as efficient as the pricing methods used in advanced countries.

This model also restricts any speculations by external forces to influence the petrol price in any way. It brings about transparency in the domestic pricing of the fuel.

With daily revision in the petrol price, the consumers are aligned with the market conditions. With the decline in the crude oil prices, the benefit is passed on immediately. Even if there is a hike, the OMCs are able to pass on the hike to the consumers immediately.

GST and petrol prices in Raipur

The Government of India has not linked GST and fuel prices. The current tax system makes the cost of petrol in the country expensive. The excise duties have also increased. Even though the government marginally reduced the customs duty, the net effect on the price of petrol is negligent. Since the Budget 2018, there has been no reduction in the petrol price at all.

There is an increased demand for bringing petrol prices under GST. The Government is thinking of bringing it partially under GST. Experts believe that a political call will need to be taken and there needs to be a unanimous decision to be taken by the Ste and Central Government to make the fuel more affordable for the common man.

Diesel prices in Raipur

While the petrol prices in Raipur stands at Rs 73.71 per litre, the diesel price in Raipur stands at Rs. 73.44 per litre. So, both petrol and diesel prices have been moving upwards.

Other ways to save petrol cost

There are many ways in which you can save petrol costs:

Cash back credit card: Some credit cards and debit cards can offer cashbacks of up to 5% at leading fuel stations as well as fuel surcharge waivers. These specialised credit cards are called fuel cards and they are aimed to help you save money every time you refill your vehicle at the fuel station. The benefits that you receive on your fuel purchase can be in the form of reward points, cashbacks, discount or a combination of all three. A few examples of fuel cards in India are ICICI Bank HPCL Credit Card, BPCL SBI Credit card, Standard Chartered Super Value Titanium Credit Card and HDFC All Miles Credit Card.

Use of Public Transport: Most Indian cities have a good public transport system. There is also a network of busses and trains that connect from one city to another and one state to another. Using these facilities is much cheaper than using your own vehicle. It is also less exhausting.

Cycle to work:Many cities have many organisations promoting the cycle to work concept. There are specialised cycles which are not only swift but very sporty as well. Cycling to work will reduce your dependence on fuel emitted cars, reduce pollution and it is also a very good way to maintain your health as well. It can keep you very fit.

Ride sharing:Most of cabs operating in India like OLA and Uber have share cab options. This is an on-demand service and can be booked in a second through iOS or Android app. This service allows commuters in same direction to share a ride. They are also cheaper when compared to normal cab rides.

Frequently asked questions

1. How is the petrol price computed in India?

It is computed with the help of a Dynamic Pricing Model wherein the daily international crude oil price is considered for determining the fuel price for the next day.

2. Which cab services have the ride sharing options?

Most of the top cab services in the country like Uber and Ola offer ride share options to reduce your cost of travel

3. 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.

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