Petrol Price in Mangalore and other Prime Cities in Karnataka
The following table outlines the historical Petrol Prices in Mangalore, Bangalore and Mysore.
| Last Price Changed | Mangalore | Bangalore | Mysore |
| 02 April 2017 | Rs.70.77 per litre | Rs.71.09 per litre | Rs.70.84 per litre |
| 01 May 2017 | Rs.72.68 per litre | Rs.73.01 per litre | Rs.72.76 per litre |
| 01 June 2017 | Rs.71.27 per litre | Rs.71.59 per litre | Rs.71.34 per litre |
| 01 July 2017 | Rs.63.95 per litre | Rs.64.24 per litre | Rs.64.02 per litre |
| 01 August 2017 | Rs.66.09 per litre | Rs.66.39 per litre | Rs.66.16 per litre |
| 01 September 2017 | Rs.72.02 per litre | Rs.70.34 per litre | Rs.70.09 per litre |
| 01 October 2017 | Rs.71.55 per litre | Rs.71.87 per litre | Rs.71.62 per litre |
| 01 November 2017 | Rs.69.89 per litre | Rs.70.21 per litre | Rs.69.96 per litre |
| 01 December 2017 | Rs.69.97 per litre | Rs.70.29 per litre | Rs.70.05 per litre |
Excise Duty and VAT
Petrol generates the revenue for both central and state governments. The central government imposes the excise duty whereas state governments impose Value-added Tax (VAT). Recently, the excise duty was revised to Rs.19.43 per litre in October 2017. The VAT levied on petrol was 30% in Karnataka as on 04 October 2017. These two tax components are subject to change from time to time. In October 2017, VAT was reduced in Maharashtra, Uttar Pradesh and Gujarat.
Petrol Price in Mangalore – How is that assessed?
Petrol Price Today in Mangalore includes the following cost elements:
- Crude oil prices
- Excise Duty and VAT
- Refinery transfer price (RTP)
- Dealer Commission
- Profit Margin of OMCs
- Pollution Cess
- Expenses incurred by oil marketing companies
The cost of crude oil is determined globally and changes based market dynamics.
The commission charged by dealers varies from one place to another.
The expenses incurred by OMCs include freight charges, landing expenses and operational expenses.
Refinery transfer price is the price remitted by OMCs to refineries for converting crude oil into petrol.
Excise duty imposed on petrol in Mangalore is 19.43 per litre on as 3 October 2017.
Value-added Tax (VAT) was 30% as on 04 September 2017 in Karnataka.
Determinants of the Petrol Price in Mangalore
The Petrol Rate in Mangalore increases when:
- The cost of crude oil goes up
- The tax rates increases
- The USD falls against the INR
On the other hand, the Petrol Rate in Mangalore decreases when:
- The cost of crude oil falls down.
- The tax rates decrease
- The USD gains against the INR
The cost of crude oil is based on global demand and supply, the economics of oil producing companies, weather conditions, seasonal variations and global politics. On the other hand, the exchange rate is based on interest rates, inflation rates, Gross Domestic Product (GDP) and global economics.
Petrol Price in Mangalore vs GST
As we all know, we are all paying taxes under the new tax regime called GST, which stands for Goods and Services Tax (GST). Unlike other products, petrol and diesel have not been brought under the GST purview. As a result, the current petrol price in Mangalore remains unaffected by the GST regime. The imposition of GST system on petrol at the current tax structures will negatively affect the revenue source for the government.
