| Date | Petrol ( / liter) |
| 19 Feb 2018 | ₹ 71.33 |
| 16 Feb 2018 | ₹ 71.93 |
| 15 Feb 2018 | ₹ 72.19 |
| 14 Feb 2018 | ₹ 72.34 |
| 13 Feb 2018 | ₹ 72.34 |
| 12 Feb 2018 | ₹ 72.41 |
Petrol Price in Ahmedabad
This page gives you the most sought-after information related to petrol. Let’s begin the process in which fuel rates (the current diesel rate and the current petrol rate) in Ahmedabad are priced.
How are Petrol Price in Ahmedabad Determined?
The government of India has recently introduced a fresh fuel pricing mechanism called ‘dynamic fuel pricing or the daily revision’ on 16 June 2017. It is a streamlined version of the earlier fortnightly-based revision. As per the new system, all state-run oil marketing companies will update petrol prices in Ahmedabad at 06:00 a.m. every day. It is not twice a month! With the introduction of the daily revision, India joins the United State of America (USA) and Australia that also revise fuel rates regularly.
Computation of Petrol Costs in Ahmedabad
The following steps are followed to compute petrol prices in Ahmedabad:
Step 1: Calculation of the Cost of Crude Oil
The cost of crude oil is the first component of the price structure of petrol and can be computed by taking into account the previous day’s Brent Crude oil price and the value of the USD. Let’s assume that the cost of a barrel of crude oil (159 liters) is $47 and the value of the USD against the INR is Rs.64. The cost of a liter of crude oil works out to be Rs.20.10.
Step 2: Calculation of operational and transportation costs incurred by oil marketing companies
Oil marketing companies incur both operational costs (including freight charges) and transportation costs. Operational expenses will remain unchanged for a period of six months whereas transportation costs are reviewed once a year. Let’s now assume that the operational cost is Rs.5.65 and the transportation cost is Rs.2.68. After the second step, the petrol cost per liter Rs.28.43.
Step 3: The Central Government’s Excise Duty
Let’s assume that the central government’s excise duty is Rs.19.48 per liter. The price of a liter of petrol will now increase to Rs.47.91.
Step 4: Commission charged by dealers
Let’s now consider that petrol dealers in Ahmedabad charge 7% commission on a liter of petrol. 7% of Rs.47.91 works out be Rs.3.35. The cost of a liter of petrol now increases to Rs.51.26 after the fourth step.
Step 5: VAT
This the final step where the tax on petrol imposed by the government of Gujarat and pollution cess are added. Petrol is taxed at 28.96% by the Gujrat government. Therefore, 28.96% of Rs.51.26 works out to be Rs.14.85. The cess on pollution charged by the local government is assumed to be 25 paise. Now, the retail price of petrol in Ahmedabad will be Rs.66.36 per liter.
Impact of GST on Petrol Price in Ahmedabad
Does GST impact the current petrol rate? Certainly, it does not impact. Along with five petroleum products, petrol has been kept outside the regime of GST that was rolled out by the government of India in July 2017. As we all know, the highest tax rate set by the GST Council till date is 28%. Even though petrol is taxed at this rate, the petrol rate in Ahmedabad will drop by 30-35%. It may not be a feasible option from the perspective of the state and central governments, which stand to lose the major source of income. Consumers will benefit.
Petrol Price vs. Diesel Price in Ahmedabad
The average prices of diesel and petrol in the city after the recent reduction in the excise duty were Rs.63 and Rs.69.92 respectively. With the daily revision in place, petrol and diesel rates are expected to increase slightly over the next 30-60 days.
