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Petrol Price In Thane

04 April 2020

Date

Petrol Prices

Change

  • 2020-04-04

    ₹ 75.35 /L

  • 2020-04-03

    ₹ 75.35 /L

  • 2020-04-02

    ₹ 75.35 /L

  • 2020-04-01

    ₹ 75.35 /L

  • 2020-03-31

    ₹ 75.35 /L

  • 2020-03-30

    ₹ 75.35 /L

  • 2020-03-29

    ₹ 75.35 /L

  • 2020-03-28

    ₹ 75.35 /L

  • 2020-03-27

    ₹ 75.35 /L

  • 2020-03-26

    ₹ 75.35 /L

  • 2020-03-25

    ₹ 75.35 /L

  • 2020-03-24

    ₹ 75.35 /L

  • 2020-03-23

    ₹ 75.35 /L

  • 2020-03-22

    ₹ 75.35 /L

  • 2020-03-21

    ₹ 75.35 /L

  • 2020-03-20

    ₹ 75.35 /L

  • 2020-03-19

    ₹ 75.35 /L

  • 2020-03-18

    ₹ 75.35 /L

  • 2020-03-17

    ₹ 75.35 /L

  • 2020-03-16

    ₹ 75.35 /L

  • 2020-03-15

    ₹ 75.51 /L

  • 2020-03-14

    ₹ 75.63 /L

  • 2020-03-13

    ₹ 75.76 /L

  • 2020-03-12

    ₹ 75.90 /L

  • 2020-03-11

    ₹ 76.34 /L

Petrol prices in Thane

About Thane

Thane is located in the state of Maharashtra in India. It is a metropolitan city. It spans an area of over 147 square kilometres. Thane is surrounded by nine lakes and is thus also known as “the city of lakes.” It is situated next to Mumbai in the North-Western side of Maharashtra.

Thane is said to be the 16th most populated city in India. According to the 2011 census, it is said to hold a population of about 18.9 lakhs of people. It has a tropical monsoon climate that shuffles between tropical wet and dry climate.

Railway transport in Thane

The city of Thane is very well linked through its Central and Trans-Harbour Line Suburban railway network that connects the city to its neighbouring suburbs. The Thane-Vashi Harbour Line and Central line junction is at Thane. It is the busiest railway station in Mumbai and accommodates over 654,00 passengers daily.

Petrol prices in Thane

The petrol prices in Thane have been on the rise just like all the other cities in India. The cost of petrol is now Rs.77.14 per litre which is comparatively lesser than the high of Rs.91.41 on the 3rd of October 2018.

Why are petrol rates so high in Thane?

Petrol rates in Thane are very high as the state of Maharashtra charges one of the highest VAT slabs in the country. There are two VAT slabs that are levied. Petrol pumps in Thane, Mumbai and Navi Mumbai have to pay a VAT of 39.12% which is a percentage point less than the rest of the state.

In the global scenario, there have been many trade wars and geo-political tensions that have contributed to the price rise in international crude oil.

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.

Pricing mechanism of petrol in India

Retail Selling Price: The Retail selling price of petrol (RSP) is determined by a few components. There is a long process to arrive at this price. All the oil marketing companies in our country like the IOCl, BPCL and HPCL use the Trade Parity Pricing method to calculate RSP. The cost is calculated on the assumption that 80% of the fuel is imported in India and 20% exported. That means, the import parity price is 80% and 20% constitutes the export parity price.

Export Parity Price: The amount realized by the oil marketing companies on exporting petroleum products is called as the export parity price. This includes the FOB and ALB (Advance License Benefit) as well. It is currently nil as the Government 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.

There have been many critical views on this pricing method. It does seem that this method has been followed to protect the interests of the OMCs. This makes sense only when the fuel prices are controlled by the government and not affected by the international market prices. Experts are of the opinion that the pricing of fuel needs to be based on the cost borne by the refineries and their margins. Since most of the petroleum products are exported, the allocation of 20% towards EPP is not entirely correct.

Components of petrol prices

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

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

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

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

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

Inland Freight: This is the transportation amount 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 particular price to buy the fuel from the OMCs.

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

Import charges: Insurance, port and ocean losses constitute the Import charges. The premium paid to the insurance provider is known as the insurance charges. Port dues are charges applicable for using the facilities at the port.

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

VAT: The State Government Charges Value Added Tax on petrol. It varies from state to state. Maharastra has the highest VAT charges in the country.

Petrol price in Thane as compared to other cities.

The price of petrol in Thane and Mumbai is the highest in the country of India. This is due to the high VAT charges. Other cities are comparatively lower.

How frequently are petrol prices in Thane calculated?

With the usage of the dynamic fuel pricing model since 2017, the costs are now linked directly to the international price of crude oil. The price of petrol is now calculated on an everyday 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 released to the consumers at 6am every day. This is calculated on an everyday basis of the 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 monitor 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 everyday prices of petrol of any city. MYHPCL is another app brought out by HPCL and SmartDrive is managed by BPCL.

  2. SMS: There is another option of sending a text message to dealer for instant 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.

  3. Online Portals: Every oil company displays the cost of petrol on their website every day at 6 AM. Most websites also show historical rates, graphs, trends and much 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 most important benefits of the dynamic fuel pricing system is the speed at which the change in international prices is reflected on the petrol price to the end consumer. This happens within a day now instead of a fortnight earlier. The benefit of a reduced crude oil price can now be immediately passed onto the end consumer within a day instead of waiting for over 14 days.

This model of pricing is at par with the methods followed in many of the advanced countries. The transparency at which the rates are determined with very little influence from the Government makes it very attractive.

The daily revision in the petrol price brings about parity in the domestic pricing of the fuel. Consumers enjoy the benefit of lower prices immediately and OMCs are immediately able to pass on the hike as well.

GST and petrol prices in Thane

The now introduced GST has not been applied to petrol and other fuel. VAT is therefore still applied to them along with Excise duty levied by the central government. As VAT varies from state to state, there exists a good deal of difference in petrol prices from state to state. Critics opine that applying GST to petrol and diesel will bring uniformity in pricing and lower it. Maharashtra has the highest VAT charges in the country.

Diesel prices in Thane

While the petrol prices in Thane stands at Rs 77.14 per litre, the diesel price in Thane stands at Rs.68.11 per litre. So, both petrol and diesel prices have been increasing.

Other ways to save petrol cost

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

Cashbacks on fuel cards:

Some credit cards and debit cards can give cashbacks of up to 5% at leading fuel stations as well as fuel surcharge waivers. These fuel cards are aimed to help you save money each time you refill your vehicle at the fuel station. There are several banks that offer co-branded fuel credit cards in collaboration with oil companies. The advantages that you receive on your fuel purchase can be in the form of reward points, cashbacks, discount or a combination of all three. Some 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 great 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 more affordable than using your own vehicle. It is also less exhausting.

Electric Cars:

Electric cars are now a reality in India. It is easy to own and with plans to build recharge stations across locations, it will be convenient to use the vehicle for long drives as well. Expert studies suggest that the maintenance cost of an electric vehicle is Re.1 per km as against Rs. 5 per km on a diesel or petrol car.

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.What makes up 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 cost 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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