Petrol Price in Jharkhand Today

How are Petrol Prices in Jharkhand Revised?

Dynamic fuel pricing has been adopted in India after running a 40-day pilot in five Indian cities. Since 16 June 2017, all petrol stations across the state have been revising fuel prices (petrol and diesel rates) on a daily basis. Dynamic fuel pricing is alternatively referred to as the daily revision. The United States of America, Japan, Australia and Germany also follow the daily revision system. India joins these countries with the introduction of dynamic fuel pricing.

The fuel pricing is done in sync with global crude oil prices and the INR/USD conversion rate on a daily basis. Therefore, daily variations in the INR/USD exchange rate and crude oil prices can be instantly shifted to end consumers. In the earlier fortnightly revision, the fuel pricing was based on the average price of crude oil rates and the exchange rate. This is how dynamic fuel pricing differs from the fortnightly revision.

Additional Features of Dynamic Fuel Pricing

• The best stock management principles can be adopted.
• Consumers can be aligned to market dynamics.
• The Indian fuel retailing segment can be aligned to global markets.
• Oil marketing companies and dealers can better manage working capital.

How are Petrol Costs in Jharkhand Computed?

• Value Added Tax (VAT): The State Government of Jharkhand levies VAT on the total of the above costs. 

• Dealer Commission: A commission is paid to the petrol pump owners. 

• Excise Duty: This is a tax levied by the Central Government. 

• OMC Processing Charges: Oil Marketing Companies add their costs for refining and processing. 

• Crude Oil Price: This is the base cost, which is influenced by international market dynamics.

Factors Affecting Petrol Prices in Jharkhand

• Global Crude Oil Prices: Fluctuations in the international price of crude oil directly impact the cost of petrol in India. 

• Indian Rupee to US Dollar Exchange Rate: A weaker rupee makes it more expensive to import crude oil. 

• Central and State Government Taxes: The excise duty and VAT are significant components of the final petrol price. 

• Demand and Supply: The balance between the demand for petrol and its supply in the market can also affect the price. 

Does GST Affect Petrol Rates in Jharkhand?

 Petrol prices in Jharkhand are not affected by GST, which is unified tax reform in India. Petrol has not been covered under the GST regime. Therefore, GST rates have no impact on petrol prices.    

*Disclaimer: BankBazaar makes no guarantee or warranty on the accuracy of the data provided on this page, the prevailing prices are susceptible to change and provided on an as-is basis. We accept no liability for any loss arising from the use of the data contained on this website.