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Todays Petrol Price

06 August 2020

₹ 77.81

Current Petrol Per Liter

Petrol Prices in Metro Cities

Petrol Price In Surat

06 August 2020

Date

Petrol Prices

Change

  • 2020-08-06

    ₹ 77.81 /L

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  • 2020-08-05

    ₹ 77.81 /L

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  • 2020-08-04

    ₹ 77.81 /L

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  • 2020-08-03

    ₹ 77.81 /L

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  • 2020-08-02

    ₹ 77.81 /L

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  • 2020-08-01

    ₹ 77.81 /L

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  • 2020-07-31

    ₹ 77.81 /L

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  • 2020-07-30

    ₹ 77.81 /L

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  • 2020-07-29

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  • 2020-07-28

    ₹ 77.81 /L

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  • 2020-07-27

    ₹ 77.81 /L

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  • 2020-07-26

    ₹ 77.81 /L

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  • 2020-07-25

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  • 2020-07-24

    ₹ 77.81 /L

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  • 2020-07-23

    ₹ 77.81 /L

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  • 2020-07-22

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  • 2020-07-21

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  • 2020-07-19

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  • 2020-07-18

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  • 2020-07-17

    ₹ 77.81 /L

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  • 2020-07-16

    ₹ 77.81 /L

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  • 2020-07-15

    ₹ 77.81 /L

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  • 2020-07-14

    ₹ 77.81 /L

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  • 2020-07-13

    ₹ 77.81 /L

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  • 2020-07-12

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Petrol price in Surat

Surat is known for diamonds and jewelry trading. With the growing opportunities and better disposable income, the number of vehicles in Surat have seen a drastic growth. As of 2017-2018, the total number of registered vehicles in Surat amount to 23.28 million. The diamond city has seen a rise in the number of cars, there has been a substantial increase in motor cycles and scooters. Although the city is well connected by public transport system, it does not seem to cater to a majority of the population. More people use private vehicles to travel across the city. The increase in number of vehicles has resulted in higher demand for petrol and diesel. The petrol prices across the nation has been on an upward spiral influenced by multiple factors.

Petrol prices in Surat

Petrol remains the basic commodity used for transportation, however, the supply cannot be indigenously matched with the demand dynamics. Crude oil is an imported commodity and the supply of this raw material influences the petrol availability in Surat (and rest of India). The crude oil prices are on a rise and the exchange rates are unfavorable which has severe fluctuations of petrol prices in Surat. The petrol prices have been on the rise over the past 10 months. There was only temporary relief which was influenced by the Government intervention to reduce the prices to provide a breather to the end user. The petrol price as of 22 October 2018 is Rs. 78.79 per litre, over the past 10 sessions the price has lingered around the same levels. The prices in September 2018 peaked at Rs. 83.01 per litre, the prices have tapered off since. Experts believe that the macro economic factors continue to remain unfavorable and hence, the relief may only be temporary.

Components that affect petrol prices in Surat

There are multiple factors which affect the petrol prices in Surat. They can be broadly classified as international factors and local factors. The international factors tend to have a more severe impact on the pricing of fuel as compared to that of local factors. Below is a brief understanding of the various factors which influence the petrol pricing in India –

International factors –

Crude oil prices – Crude oil is the primary raw material used for petrol and diesel. They undergo varied refining process; the cos 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). The crude oil prices have been on the rise since the onset of 2018, primarily due to the production cuts announced by OPEC nations. Crude oil is an imported commodity and is procured from OPEC nations which have crude reserves in abundance. The brewing tensions across the OPEC nations and USA has influenced the crude productions which in turn have a ripple effect on the overall pricing of fuel across nations.

Currency exchange rates – Crude oil is an imported commodity, with the growing demand the volume of crude oil imported by India has increased over the past few years. 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 in turn led to a sharp squeeze in gross profit margin.

Local factors :

Operating costs –The operating costs in terms of logistics, toll, labor cost for transportation of raw materials from dealers to refineries and from refineries to petrol pumps have a subtle impact on the pricing of the end product.

Marketing costs –There are multiple variants of petrol which are suitable for various types of vehicles, there are premium petrol products which are marketed aggressively to enhance the margins for the OMCs. The marketing costs are in turn passed on to the end user.

Research and development costs – the increase in competition has enhanced the need for OMCs to develop rich variants to the plain petroleum products. There is substantial amount invested in R&D initiatives to develop various premium petrol products and oils or lubricants for various types of vehicles. This cost also becomes a component in pricing of petrol products.

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. Gujarat Government or State Government is responsible for levying VAT on petrol and diesel, hence this remains one of the leading causes for price disparity among petrol and diesel price across various States in India. Gujarat earlier used to charge 24% VAT on petrol and diesel and an additional 4% cess. VAT was revised in January 2016 citing the fall in International crude prices, VAT is now being charged at 20% plus the 4% cess.

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.

Pricing mechanism of petrol in Surat

Along with the rest of India, Surat migrated to the dynamic fuel pricing mechanism in June 2017, where the price of petrol and diesel would be revised on a daily basis. Prior to this, the petrol and diesel prices would be revised on a fortnightly basis. Dynamic pricing mechanism is followed by most developed nations, it reduces the Government intervention and promotes free trade economy. The benefits of dynamic fuel pricing are as listed below –

  • Increases transparency of fuel pricing and reduces Government intervention

  • Reduces working capital reserve to conduct day-to-day activities by OMCs

  • Tech-enabled petrol pumps to reduce lead time due to revision of fuel prices frequently

  • Promotes free trade economy

  • Interlinks the local petrol and diesel prices to international crude oil prices

GST (Goods and Services Tax) and petrol prices in Surat

GST was levied to bring in uniformity of tax regime across States. This would cut down the price parity pertaining to various goods and services across the States. However, petrol and related fuel products have been kept out of the ambit of GST, hence, there is no direct impact of GST on petrol prices in Surat and rest of India.

Methods to save on petrol costs

The world is becoming more environmentally conscious, there is a need for every individual to assess the carbon foot print that they would leave behind. If there are ways to reduce the carbon footprint then effort should be taken in this regard. Clearly, the carbon footprint from usage of fuel (petrol / diesel / LNG) is quite high, hence, any approach to reduce the usage should be sought by individuals. The reduction of petrol usage will also prove to be beneficial on the purse strings. Some of the methods by which one can save on petrol usage and cost are mentioned below –

Carpooling – Many individuals car pool with their colleagues or friends or acquaintances to optimize on petrol usage. It also spares them the stress of driving through the city traffic on an every day basis. The only drawback in this arrangement is the syncing up of timings among all the parties involved.

Cab sharing –Citing the importance of reducing costs for the end customer, cabs which operate across Surat have launched the cab sharing service, where an individual can book the service as per convenience. The cab will pick up multiple individuals in the same cab and drop them off at their respective destinations. The fare will be determined based on the distance travelled by the individual independent of the rest of the journey.

Electric cars –Electric cars have been operating with a very small market share in India. While they have proven to be efficient, the battery operated cars need more charging points across Surat and other cities across India. Further, there is a need to customize these cars to catch up with the challenges faced by individuals who wade through the cities congested traffic.

Public transport –Using public transport could be a long-term solution to the problem. However, for this the Government needs to take up initiatives to enhance the transport infrastructure to catch up with the increasing demand. Many cities have introduced Metro links within the city which are a convenient means to travel, especially longer distances. Alternatively, buses and rai options should be opted by individuals, this will help them reduce the carbon foot print substantially, reduce stress levels and save petrol costs.

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