Petrol and Diesel Price in Kerala
Today Petrol Price in Kerala is INR 106.44 per liter and Diesel Price in Kerala today stand at INR 95.39 per liter.
If you are a Keralite, any changes in diesel and petrol prices in Kerala will affect your pocket. As on June 2017, petrol prices in Kerala are revised daily at 6:00 a.m. using the dynamic fuel pricing method. Before June 2017, fuel prices were revised every fortnight. You can see below some of the reasons and impacts of the rise of diesel and petrol prices in Kerala.
Petrol price in Kerala
Today's Petrol Price in Kerala is INR 106.44 per liter.
Petrol price in Kerala depends on various factors. India imports most of the raw materials for the petrochemical industry from foreign countries. Hence, the base components to determine the retail petrol price in Kerala are:
The varying international price of crude oil
Foreign currency exchange rate of Rupees to US Dollars
The international price and foreign currency exchange are just a small part of the reasons for the retail petrol price in Kerala. Around 57% of the retail price is because of taxes, duties, deal margins and cesses.
Other reasons that determine the petrol price in Kerala are:
Refinery Expenses
Demand for petrol in Kerala
Other expenses like state tax on petrol, commissions charged for marketing,
government policies, dealers and other duties.
Diesel price in Kerala
The Diesel Price in Kerala Stand at INR 95.39 per liter.
Similar to petrol, the raw material for diesel is also crude oil. Hence, factors that affect petrol prices in Kerala also have the same effects on diesel prices in Kerala. In Kerala, the demand for diesel also plays a significant role in the final retail price of diesel. The main factors that determine the diesel price in Kerala are:
Refinery Expenses
Demand for Diesel
And various other factors such as state tax on diesel, government policies, dealers, etc.
Elements impacting petrol prices in Kerala:
Oil Marketing Companies (OMC) are responsible for buying crude oil and selling refined petrol or diesel to dealers. The dealers then sell the refined petrol and diesel to the consumers. The Oil Marketing Companies refine crude oil to petrol. OMC can be a mix of private and public companies.
- Public Oil Marketing Companies that control 95% of this sector are:
Bharat Petroleum Corporation Limited (BPCL)
Indian Oil Corporation Limited (IOCL)
Hindustan Private Corporate Limited (HPCL)
Private Oil Marketing Companies that control 5% of this sector are:
Reliance Industries
Essar
Dealers are the businesses or individuals who own the petrol pumps. They are the final sellers of petrol to the consumers. The dealers sell petrol at the Retail Selling Price (RSP), which includes taxes and their margins.
The main factors that determine the Retail Selling Price (RSP) of Petrol are:
Price of Crude Oil: Raw material for petrol is crude oil. Currently, 75% of India’s crude oil is imported. The international price for crude oil and the foreign exchange rate for Indian currency affects the price at which India buys and importing of raw materials for petrol. The other 25% is catered by Oil production and Exploration companies. These companies are a mix of both private and public companies.
Private Sector Companies:
Reliance Industries
Cairn India Ltd., etc.
Public Sector Companies:
Oil India
ONGC or Oil and Natural Gas Corporation, etc.
Refinery Expenses: The cost for transportation, like freight charges along with the refinery charges, are also added to the price of Crude oil. This is called the Refinery Transfer Price (RTP)
Various Taxes: Around 57% of the retail price is due to state taxes, dealer margins and cesses.
There are mainly two different taxes:
The Central Excise Duty: This is imposed by the Central Government.
The State VAT: The Value Added Tax is imposed by the State Government.
The Dealer Commission and Profit Margin: The commission for the dealer is added after the Central Excise price.
All these prices result in the final RSP or Retail Selling Price. The petrol price in Kerala also varies between Oil Marketing Companies due to variations in margins and dealer commission.
The petrol price in Kerala is revised at 6 AM every morning at all petrol pumps. Petrol pumps in Kerala now follow a marginal differentiated pricing system. This results in different prices at different locations and different outlets of the same Oil Marketing Company.
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