| Date | Petrol ( / liter) |
| 19 Feb 2018 | ₹ 75.78 |
| 18 Feb 2018 | ₹ 75.95 |
| 17 Feb 2018 | ₹ 76.12 |
| 16 Feb 2018 | ₹ 76.4 |
| 15 Feb 2018 | ₹ 76.68 |
| 14 Feb 2018 | ₹ 76.84 |
| 13 Feb 2018 | ₹ 76.84 |
| 12 Feb 2018 | ₹ 76.91 |
| 11 Feb 2018 | ₹ 77.14 |
| 10 Feb 2018 | ₹ 77.26 |
Petrol Price in Kerala
Kerala has witnessed a 20% hike in the monthly utilization of petroleum products. One of the main reasons behind the increased consumption is load-shedding. Many people are using power generators, which consume petroleum fuel.
Computation of Petrol Price in Kerala
Petrol rates in Kerala are assessed in the following steps:
Step 1: Calculation of the Crude Oil Price
Overseas oil-producing companies sell unrefined oil to Indian oil marketing companies (OMCs) at benchmark rates. The present price of a barrel, which is equivalent to 159 liters, of crude oil is $49 in global markets. Therefore, the cost of a liter of crude oil is computed by converting US dollars into Indian rupees and then divided by 159. The cost of crude oil also includes freight charges paid by oil marketing companies.
Step 2: Calculation of Refinery Expenses
Upon importing crude oil from overseas oil companies, Indian oil marketing companies will shift crude oil to refineries for further processing. Crude oil is then clustered into several products such as diesel, coal tar, and petrol in distillation towers of these refineries. The cost that is incurred to convert crude oil into petrol is called refinery cost, which is added to the cost of crude oil. Moreover, crude custom levies and charges from ports to refineries are added.
Step 3: Other Cost Elements
Clustered petrol is now ready to be stockpiled in the stowage reservoirs of oil marketing companies. The actual rate of petrol, which is paid by end consumers, consists of all the aforementioned costs plus the commission charged by dealers, excise duty, value added tax (VAT), and total duties. In other words, the petrol price is the cost price that consists of refining, procuring, marketing, the excise duty, and state taxes.
Factors affecting Petrol Price in Kerala
The following factors affect the petrol price in Kerala:
- Cost of Crude Oil
The cost of crude oil influences the retail selling price of petrol. If it increases, the retail selling price will increase; if it decreases, the retail selling price will decrease. The cost of crude oil is influenced by many factors such as seasonal variations, weather reports, overseas demands and supplies, the capabilities of refineries, and political stability or instability in oil-producing countries.
- Exchange Rate
The exchange rate of the Indian currency to the base currency also has a direct impact on the cost of crude oil. For example, if the INR falls against the USD, the buying cost of crude oil in Indian rupees will rise. Similarly, if the USD falls against the INR, the cost of crude oil in Indian rupees will decrease.
- Excise Duty and VAT
Petrol is taxed by the central and state governments. The cost price of petrol will increase if the percentage of tax imposed by both the governments increase. Similarly, the cost price of petrol will fall when the percentage of tax levied by both the governments decrease. On 4 October 2017, the central excise duty was reduced by Rs.2 by the central government. After the revision, the petrol rate in Kerala was reduced to Rs.72 from Rs.74.
