Fuel price: Karnataka polls over; petrol, diesel prices hiked after day hiatus - Times of India
Sep 15, India Business News: The rise in petrol and diesel prices has been making the news for the last week or so. Change in fuel price indeed has far. Fuel prices in the third week dropped because of the sluggish global crude oil market. The upward trend in petroleum prices influenced fuel rates to increase. Petrol price in Bangalore today rose to Rs per litre. The city experienced a hike in petrol as well as diesel prices despite an overall fall in the whole country.
Prices were frozen for 3 weeks prior to May 14, what appeared to be a pre-election strategy in the Karnataka state.
Let's go back in history: What's the cheapest price of Petrol/Diesel that you paid
The losses from the halt are estimated to be Rs crore for oil marketers as during the period the international crude oil benchmarks Brent and WTI were rallying. On Monday, however, Brent was trading 6. International rates have been falling since late Friday when Russia and Saudi Arabia said they would increase their output to help stabilize prices in the market.
The hike despite easing prices says that the oil marketers are still recovering from their losses and it would take a while before the diesel rates are stabilized in Bangalore. The price rise was despite the drop in crude oil prices internationally. Russian energy minister said that his country and a group of oil-rich countries will increase their production in the coming days.
The rise in rates is, however, lower than the average hike of 23 paise per litre of diesel this week in the city. The price can be expected to ease in the coming days. Meanwhile, crude oil prices internationally have eased after Russia indicated that it will gradually increase its production.
Reduced supply from oil rich countries and strong demand had pushed the fuel prices higher globally in the past few weeks. Geopolitical tensions between Iran and the US also triggered it.
Diesel rates in Bangalore are in line with most other cities in India. It includes Karnataka state VAT value added tax and sales tax apart from excise duty imposed by the central government. As a city highly dependent on road transport, the rise will impact costs incurred by transport companies which will ultimately be passed on to final consumers.
The Indian government is, however, looking for ways to reduce the burden on citizens. Temporary relief can come if taxes, which make up for a large portion of the final price is slashed to some extent.
Fuel rates across the country at their all-time highs. State-owned oil companies had started the practice of revising fuel rates on a daily basis in June This means that the volatility of the oil rates is being passed on to the consumers.
International crude oil rates and domestic taxes along with processing fee makes up for the price you pay at your local bunk in Bangalore.
Petrol price: Petrol, diesel price rise saga explained - Times of India
While global oil benchmarks are trading higher, the taxes paid to the Karnataka and central government in the form of excise duty, VAT value added tax and surcharge are also significant. Due to reduced production in oil-rich countries, diesel prices in Bangalore may only find relief if the taxes are controlled by the governments.
There are also recommendations to bring fuel under the GST goods and service tax regime, to regulate the rates across the country. There was no hike in the prices of diesel during the election period, post-election the prices of diesel is rising and it may reach beyond Rs 80 per liter in the near future.
The prices of diesel stood at Rs As per the new rule implemented in India starting from June 16,the prices of petrol and diesel are set to a revision on a daily basis -daily morning at 6 am. This is mainly done to sync in the domestic prices of the liquid fuel with the international prices which is beneficial for both the consumers as well as the government.
The oil PSUs in India has passed on the four weeks of the relentless rise in the international oil prices to consumers, which is currently hurting the consumer's pockets. For example, today's petrol prices in Bangalore was very different to what it was until a few days ago.
This is because of the beginning of June 15, there is a daily price revision. Daily Petrol Price Revise in Bangalore In fact, after petrol prices were deregulated, we saw fortnight revisions. This was highly inconvenient for consumers who ended-up paying Rs higher for fortnightly revisions.
This put an additional pressure and burden on the consumer. Things have become a lot easier these days with the everyday price revision of petrol not only in the city of Bangalore but, also the entire nation.
India is a fast growing country, and also India is a big producer, consumer, and importer of petroleum products. Demand for oil products is increasing in India and India, There is a vast scope of oil storage.
Having petroleum will provide technological improvements, financial incentives, policy initiatives and legislative measures. Mainly, the transport sector is the sector where most of the petroleum products especially petrol and high-speed diesel are consumed.
Due to this consumption petrol price in Banglore is increasing day by day. Comparatively the petrol rates in Banglore in the past ten years are up by nearly thirty to forty rupees.
There was a time when petrol price Bangalore was as low as Rs But now due to the high Consumption and the necessity petrol rates are now at nearly almost at Rs As of the rates seems to be doubled. Road transport solely accounts for about 37 per cent of the total oil usage, and the remaining is consumed for the machinery and other products which run on fuel. Petrol Rates in Bangalore Steady From the past three years the petrol price in Bangalore has changed frequently once every 15 days.
Before June 16th petrol price in Bangalore used to change every 15 days or two weeks by the top petroleum companies once. But the price of petrol now changed daily in the morning at 6. This change has been due to various reasons. Before two weeks once the price used to change around one or two rupees whereas now the price change in paise.
Anyhow due to the price change, larger vehicles tend to lose or save money every day.
Check out petrol and diesel price of 3 March - News Crab | DailyHunt
Even the companies which use a lot of petrol every day by buying and storing them in the big vessels may also buy petrol by having a track on petrol every day and buy it when the price of the petrol in Bangalore falls.
Why is Diesel price less than Petrol price in Bangalore? We know that both petrol and diesel are produced from crude oil then why is the petrol price in Bangalore is costlier than Diesel price most of us wonder. There are many reasons such as the refining costs, taxes, demand, etc.
The first and the main reason for it is the refining cost. In the refining process of the crude oil, crude Oil is separated into different components then further it is treated to form petrol, diesel or other petroleum products. So during the further treatment for making petrol, it will cost a lot whereas for the diesel it will not cost that much comparatively.
Diesel is heavier and less volatile when compared to petrol. So, Diesel is not as much refined as petrol is refined. All these together make the petrol price in Bangalore costlier comparatively. Comparing petrol prices vs diesel prices? In diesel car, initial buying cost is high, but mileage is greater than its petrol counterpart. So now what matters is how much you drive in a month, if you drive around kms a month or 50kms every day, then go for diesel, otherwise petrol. If you are someone who frequently takes long distance trips, comfortability would be a factor, and diesel cars are more comfortable than petrol, plus the ease of driving will be better in diesel ones.