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Petrol Price In Vadodara

08 April 2020

Date

Petrol Prices

Change

  • 2020-04-09

    ₹ 66.84 /L

  • 2020-04-08

    ₹ 66.84 /L

  • 2020-04-07

    ₹ 66.84 /L

  • 2020-04-06

    ₹ 66.84 /L

  • 2020-04-05

    ₹ 66.84 /L

  • 2020-04-04

    ₹ 66.84 /L

  • 2020-04-03

    ₹ 66.84 /L

  • 2020-04-02

    ₹ 66.84 /L

  • 2020-04-01

    ₹ 66.84 /L

  • 2020-03-31

    ₹ 66.84 /L

  • 2020-03-30

    ₹ 66.84 /L

  • 2020-03-29

    ₹ 66.84 /L

  • 2020-03-28

    ₹ 66.84 /L

  • 2020-03-27

    ₹ 66.84 /L

  • 2020-03-26

    ₹ 66.84 /L

  • 2020-03-25

    ₹ 66.84 /L

  • 2020-03-24

    ₹ 66.84 /L

  • 2020-03-23

    ₹ 66.84 /L

  • 2020-03-22

    ₹ 66.84 /L

  • 2020-03-21

    ₹ 66.84 /L

  • 2020-03-20

    ₹ 66.84 /L

  • 2020-03-19

    ₹ 66.84 /L

  • 2020-03-18

    ₹ 66.84 /L

  • 2020-03-17

    ₹ 66.84 /L

  • 2020-03-16

    ₹ 66.84 /L

Petrol Prices in Vadodara

Vadodara (formerly Baroda) is the third largest city of Gujarat and the administrative hub of the districts. Located on the banks of the Vishwamitri River, the city is 88 miles away from the state capital of Gandhi Nagar. Trains and highways connecting Mumbai to North India pass through this city.

Transport infrastructure in Vadodara

The NH8 that connects Mumbai to Delhi passes through the city of Vadodara. The same highway also connects the cities of Gandhinagar – the capital – Ahmedabad, and Surat. The city has a network of busses, taxis, and auto rickshaws available to both locals and tourists for travelling in and around the city. Earlier the city thrived on two-wheeler traffic but since Vinayak Logistics took over the private bus routes, the two-wheeler traffic has reduced considerably. Some transport statistics related to the city road transport -

Paved Roads: 1,680 kilometres (1,040 mi)

Unpaved Roads: 400 kilometres (250 mi)

Total Roads: 2,080 kilometres (1,290 mi)

Why are petrol rates so high in Vadodara?

Vadodara is gradually growing into an industrial hub with a number of LSI migrating to set up their factories. Among the leaders are Gujarat State Fertilizers & Chemicals (GSFC), Gujarat Alkalis and Chemicals Limited (GACL), Indian Oil Corporation (IOCL), and Indian Petrochemicals Corporation Limited (IPCL) . This attracts a large migratory populous seeking employment.

As the population grows so does the demand for transport – ergo higher demand for petrol.

This rising demand coupled with the every rising price of crude oil and the falling rupee has pushed up the price of petrol, diesel, and other fuel.

Pricing mechanism of Petrol in India

India has recently adopted the dynamic pricing model for computation of petrol price. Before decontrol of petroleum the Government of India adopted the trade parity method of computing petrol prices. This practice has continued even after de-control.

The trade parity mechanism links petrol prices to international price of the commodity. Under this method, the import parity – the price of importing crude oil is computed as the price at which petrol is brought from other countries to Indian ports and transported to the refineries – and export parity – the price of loading petrol onto the ship for export. The retail sales price (RSP) of petrol is comprised of 80% import parity and 20% export parity.

Many experts shun this pricing mechanism claiming that it protects the profit of public sector OMCs. They claim that pricing should be based on cost + profit and other market forces. They also claim that assigning only 20% to export parity is unfair as India exports large amount of petrol.

Components of petrol prices in Vadodara

Petrol pricing in is comprised of the following factors:

Free on-Board Price (FOB): FOB is the price paid by the Indian oil marketing companies to purchase crude oil from overseas dealers.

Customs Duty:Customs Duty is imposed by the Government of India on the import of crude oil.

Import Parity Price (IPP):IPP is the aggregate of import charges, customs duty, port charges and freight.

Refinery Transfer Price:Refinery transfer price is the cost of price agreed upon by oil marketing companies and refineries for transferring the petrol there.

Inland Freight:Inland freight is the transport cost for transferring petrol from refineries to retail outlets.

Depot Price:Depot price is the price that owners of retail outlets pay to purchase the petrol from oil marketing companies.

Freight:The cost of transporting oil from foreign port to Indian port is called freight.

Import Charges:Import charges comprise of freight, insurance, and ocean losses.

Excise Duty:This is a duty imposed by the Central Government on imports. Currently the Excise charged is Rs. 19.48/Lt.VAT:Value-added tax (VAT) is the tax imposed by the state Government on petrol. VAT differs across states.

The price of petrol is the sum total of the above costs. It is worth a mention that a significant portion of the RSP is comprised of taxes. Statistics show that excise collections from petro goods has more than doubled in last four years - from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18. VAT revenue from petro goods in states have also risen from Rs 1,37,157 crore in 2014-15 to Rs 1,84,091 crore in 2017-18.

Petrol price in Vadodara as compared to other cities -

The following table shows the price of petrol for two consecutive days in cities of Gujarat. It can be seen that Vadodara is among the most expensive cities in Gujarat in terms of petrol prices. It headed the list on 15th of the month and stepped down to second place on the 16 th. This shows not only that petrol prices are high in Vadodara but also that they are volatile.

CityPrice on 16-10-2018Price on 15-10-2018
Jamnagar ₹ 79.58₹ 79.92
Vadodara ₹ 79.61 ₹ 79.40
Anand ₹ 79.66 ₹ 79.59
Ahmedabad ₹ 79.70 ₹ 79.89
Kheda ₹ 79.78 ₹ 79.84
Morbi ₹ 79.81 ₹ 80.29
Rajkot ₹ 79.87 ₹ 79.49
Surat ₹ 79.87 ₹ 79.66
Chhotaudepur₹ 79.90 ₹ 79.92
Narmada ₹ 79.91 ₹ 79.91
Devbhumi Dwarka₹ 79.92 ₹ 79.54
Gandhinagar₹ 79.94 ₹ 79.99
Patan ₹ 79.94 ₹ 79.64
Bharuch ₹ 80.07 ₹ 79.90
Panch Mahal ₹ 80.09 ₹ 79.83
Junagadh ₹ 80.10 ₹ 80.18
Mehsana ₹ 80.14 ₹ 79.76
Porbander ₹ 80.15 ₹ 79.94
Banas Kantha₹ 80.24 ₹ 80.16
Tapi ₹ 80.24 ₹ 80.14
Navsari ₹ 80.29 ₹ 79.81
Sabar Kantha₹ 80.31 ₹ 80.03
Kutch ₹ 80.34 ₹ 79.60
Valsad ₹ 80.43₹ 80.32
Mahisagar ₹ 80.44 ₹ 79.73
Aravalli ₹ 80.48 ₹ 80.58
The Dangs ₹ 80.49 ₹ 80.38
Surendranagar₹ 80.52 ₹ 79.75
Botad ₹ 80.57 ₹ 80.46
Dahod ₹ 80.61 ₹ 80.50
Amreli ₹ 80.72 ₹ 80.64
Gir Somnath ₹ 80.92 ₹ 80.61
Bhavnagar ₹ 80.96 ₹ 81.30

How frequently are Petrol Prices in Vadodara Computed?

As in the rest of the country, OMCs in Vadodara too calculate the price of petrol every day and post it on their website. To know the current RSP you may visit the official website of the OMC. Prices may vary from one OMC to another depending on the factors outlined above and the profit margin applied. To know the RSP of a specific dealer you may download the app of the respective OMC or send an SMS with dealer code to the respective number. Dealer codes are prominently displayed at all pumping stations.

Benefits of dynamic fuel pricing

The new dynamic pricing model has been well received. Experts believe that it passes on the impact of fluctuation in the international price of crude oil to the customer or end user without delay. It also curbs speculation – which was rife under the fortnightly model – and other malpractices. The new model has placed India on the globe at par with other advanced countries that have already adopted this model.

GST and petrol prices in Vadodara

As yet GST is not applied to petroleum products and fuel. They are taxed with traditional road cess and VAT by the respective State Governments in India. Experts claim that this is one of the main reasons why petrol prices are high in Indian states and cities.

The government has reduced the excise duty on petrol but this did not have much of an impact on petrol prices. Road cess stands at INR 8/litre. Excise is 19.48 per litre and VAT varies from state to state. These 3 taxes account for more than 40% of the petrol price.

If GST were applied even at the highest slab it would be 28% of the final petrol price. Even if VAT is added to this, the total tax would still not exceed the current 40+%.

Diesel prices in Vadodara

Petrol price in Vadodara is slowly creeping up towards INR 90 per litre. On 15th of October it stood at 79.40/lt and rose to 79.61/lt on the very next day. This type of upward trajectory shows that petrol will soon become a luxury commodity putting privately owned cars back into the luxury market. Diesel, though cheaper than petrol, is still quite expensive. A quick look at the diesel prices of Vadodara in September 2018 shows that the price has crossed INR 80/litre.

Historical DIESEL Price in VADODARA

Highest price in September

80.16 on September 30

Lowest price in September

₹ 76.16 on September 03

Monday, September 3, 2018

₹76.16

Sunday, September 30, 2018

₹80.16

Overall Price difference

₹4.00

Cash backs on fuel cards

Consumers who own private vehicles such as cars and two wheelers that run on petrol can get some relief by using the fuel cards offered by financial institutions. A fuel card is an extended facility offered on some credit and debit cards which allow the user to get a rebate of up to 5% on the price of fuel. Some fuel cards offer waiver of surcharge applied by retailers on the RSP. These fuel cards are offered by financial institutions in collaboration with OMCs. Rebates are offered either as cash back – which means you pay less – or as reward points – which means you collect points and earn a gift or gift voucher.

Other ways to save petrol cost

Apart from fuel cards, consumers can their own measures to save on fuel costs. Here are some simple ways to save.

Electric cars:Though not yet visible, India is warming up to the concept of cars that run on electricity. Predictions claim that more than 10000 electric cars will be plying Indian roads by 2025.

Car Pooling:A familiar concept by now, car-pooling refers to several individuals from a single location travelling together to work at another location. Each individual uses his or her car by turns thus each individual saves on fuel cost for the rest of the days. This practice is not only economical at an individual level but also an eco-friendly effort as it reduces pollution and helps conserve natural resources. If the government were to encourage such efforts, India could progress much faster.

Cycle to work:Many people visit the gym after a hard day’s work. They claim that a workout refreshes their mind and gives the body some much needed exercise. The same goal can be easily – and less expensively – attained by cycling to and from work. In fact it will have the added benefit of working out in the fresh air – if there are more cycles than cars on the road, there will be less pollution and more fresh air – again an eco-friendly option.

Ridesharing:With app based cars like OLA and Uber plying the road, many people prefer to hire these cars to travel to work rather than drive their own vehicle. These cars also offer shared rides or shuttles from point to point within the city. Typically these shuttles ply from residential areas to commercial areas and back. By availing this facility you not only save yourself some expense but also contribute towards reduction of pollution. Also walking from home to the pick -up point and from the drop-off-point to work is a good exercise that will keep you fit.

Frequently asked questions

(1) What is the Dynamic Pricing Model?

The dynamic pricing model for petrol pricing is a new model adopted by the government of India shunning the older fortnightly model. While the computation mechanism remains largely the same barring some changes, prices are computed daily instead of 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 oil companies like Indian Oil.

(3) Why are petrol prices in Vadodara higher as compared to other cities in Gujarat?

Petrol prices comprise of certain worldwide, country wide, and state-wide factors. These factors determine the price charged by OMCs for selling petrol to retailers. The prices are also impacted by the natural market forces of demand and supply. If the demand for petrol in a particular city is high, the price would be higher in that city as compared to others. Vadodara being an industrial hub as well as an intersection connecting North India to South India, there is a large influx of migrants and travellers all of whom demand petrol and petrol based public vehicles. These are some of the reasons why petrol prices in Vadodara are higher than the rest of the state.

(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?

There are many ways to save on petrol. You can use your fuel card, use shared rides offered by app based cars, or opt for other alternative travel options such as car-pooling.

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