Trends in Petrol Price in Karnataka 2018

Karnataka is one of the renowned south Indian states. Bangalore, the silicon valley of India, is the capital and largest city of the state with a huge network of IT and Non-IT companies. The state is the seventh biggest by region and eighth biggest by population. The real estate industry has always been booming in the state, attracting domestic and NRI investments.

Trends in Petrol Price in Karnataka

Petrol rates in Karnataka in the last three years have changed often. The change can be attributed to many reasons. Let’s consider the trend in petrol prices in Bangalore, the capital city of Karnataka, over the last five months. Petrol prices are moving in an upward direction in the capital and other major cities including Belgaum, Mysore, Davangere, Hubli.

The petrol cost per litre in Bangalore has accelerated by 3.33% for July and by 5.47% for August of the current fiscal year. Both May and June 2017 had a decreasing trend. Prices were constant throughout April 2017. The lowest rate recorded since April 2017 is Rs.64.21.

Trend in Petrol Price in Karnataka between January 2018 and March 2018

	January	February	March
Opening date price	Rs.71.06 per litre	Rs.74.20 per litre	Rs.72.69 per litre
Closing date price	Rs.74.07 per litre	Rs.72.63 per litre	Rs.74.71 per litre
Highest price	Rs.74.07 per litre recorded on 30	Rs.74.54 per litre recorded on 6	Rs.74.71 per litre recorded on 31
Lowest price	Rs.71.06 per litre recorded on 1	Rs.72.62 per litre recorded on 23	Rs.72.69 per litre recorded on 1
Trend	Growing	Decreasing	Growing
% Deviation	4.06% (Up)	2.16% (Down)	2.70% (Up)

Trend in Petrol Rate in Karnataka in January 2018

Petrol was valued at Rs.71.06 per liter in Bangalore, the capital city of Karnataka and Rs. 71.17 per liter in Belgaum on 1. Almost the same price was observed in other prime cities, including Mysore and Hubli.
The fuel continued gaining its rate under the dynamic fuel pricing mechanism that takes into account the changes in the INR/USD exchange rate and crude oil costs internationally.
Within the first fifteen days, the fuel entities declared a rise of 1.73% in the petrol price in major cities since the Indian Crude Oil Basket gained its price substantially.
Bangalore, Belgaum, Hubli and Mysore have recurrently augmented the fuel price until the last day of the month because of the stabilized demand, interrupted production and supply of unrefined oil.
As a result, on 21, the last day of the week 3, the price offer of petrol accelerated to Rs.73.21 a liter and Rs.73.92 per litre on 28.
Indian Oil Company, BPCL and HPCL unveiled the highest petrol price at Rs.74.07 per liter on 30 and extended the same rate on 31 as well.
January produced a 4.06% increase in the fuel price as a result of almost a 5-rupee up in the crude oil rate, but not due to domestic factors.

Trend in Petrol Price in Karnataka in February 2018

Unlike the previous month, February depicted a mixed reaction in the petrol price influenced by irregularities in crude oil costs. In Bangalore, the fuel rate as on the opening date was Rs.74.20 a liter.
Even though the Union Budget was unveiled on 1 for the fiscal year 2018-2019, the OMCs neither reported a price drop nor a price up.
The upward trend was extended until 06 and the highest rate was booked at Rs.74.54 per litre in Karnataka within the first week.
7 onwards, all the three OMCs have begun deteriorating the price offer in tandem with the variations in the global parameters.
However, the fuel lost its price by almost a rupee per liter at the end of the week 2 impacted by a gained dollar.
BPCL, HPCL and Indian Oil further depreciated the petrol rate to Rs.72.84 a liter on 21 and elongated the downward trend until 28, the last day.
An aggregated price of WTI and Brent Crude Oil soared by 5.53% this month and thus, the petrol rate depreciated by 2.16%. The domestic influencers such as the Value-added Tax and the excise duty were retained unchanged during this month.

Trend in Petrol Price in Karnataka in March 2018

The average fuel price stood at Rs.72.60 a liter and the lowest price was booked at Rs.72.69 a liter on 1 at HPCL and BPCL.
Between 7 and 15, the fuel rate has increased to Rs.73.59 a liter at a growth rate of 0.08% as the USD/INR conversion rate decreased slightly.
On 21, 22, 23, 24, 25, 26 and 27, the petrol price was Rs.73.33 a liter, Rs.73.40 a liter, Rs.73.44 a liter, Rs.73.52 a liter, Rs.73.69 a liter, Rs.73.94 a liter and Rs.74.05 a liter correspondingly.
Over the last three months, the cost of crude oil has been depreciated to $63.80 per barrel. Domestic factors were not changed.
Therefore, the closing price and the highest price for the month was Rs.74.71 a liter and the overall price has been hiked by 2.70%.

Impact of GST on Petrol Price in Karnataka

The highest rate fixed by the GST council till today is 28%. Even if 28% GST tax bracket was imposed on petrol, the revenues for the government would have adversely been affected. A few experts are of the opinion that GST can also be imposed on petrol, diesel, and petroleum products. In fact, the issue was debated in the recent past.