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Petrol price in India is revised every day after adapting to dynamic pricing mechanism. Get today’s latest updated petrol price in Petrol Price In Vadodara
08 April 2020
₹ 66.84 /L
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.
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)
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
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.
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.
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
Import Parity Price (IPP):IPP is the aggregate of import charges, customs duty, port charges and
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
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.
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.
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.
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.
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+%.
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.
Highest price in September
₹80.16 on September 30
Lowest price in September
₹ 76.16 on September 03
Monday, September 3, 2018
Sunday, September 30, 2018
Overall Price difference
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.
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.
(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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