Petrol Price in Karnataka Today

Petrol Price in Karnataka

Here is everything you need to know about the petrol price in Karnataka today. We shed light on the price trend over time and understand the different factors that determine and influence the petrol cost in Karnataka.

What Factors Determine the Petrol Rates in Karnataka?

Primarily, petrol rates in Karnataka depend on the cost of crude oil in the global market as well as the value of the USD against the Indian Rupee (INR). In a nutshell, the final price of petrol in Karnataka is directly related to the cost of crude oil in the international market.

 

On a local level, profit margins for oil marketing companies (OMCs) and commissions for dealers also add to the final price of petrol in Karnataka. The cost of transferring petrol from different locations to Karnataka also impacts the retail price for consumers. The state government then adds the value-added tax (VAT) as part of the petrol tax in Karnataka while the Central government imposes excise duty on the product.

 

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How are Petrol Rates in Karnataka Computed?

Petrol rates in Karnataka are computed on the basis of a number of factors. This primarily includes the global price of crude oil, which is purchased in US Dollars. Thus, the currency exchange rate also plays a crucial part in determining petrol cost. Then comes the central excise duty levied on the crude oil. Oil manufacturing companies also add the refining charges and other costs to process the crude oil into petroleum. Later, the profit margin by dealers who take care of transportation of petrol from OMCs to the state petrol pumps is also added to the cost. Finally, the Karnataka state government too adds a VAT to the petrol price. Thus, the final petrol rates in Karnataka are computed by taking all these values into consideration. Any fluctuation in any one of the above-mentioned determinants can likewise change the final petrol petrol price in Karnataka.

How Often is the Petrol Rate in Karnataka Revised?

The Karnataka petrol price is changed daily under the ‘Dynamic Fuel Pricing’ mechanism. This procedure was introduced in India in June 2017 to encourage competition and transparency in the sale of fuel. The price of petrol in Karnataka is reset across stations in the state every day at 06 AM.

At times, the price may remain the same as the previous day. However, for each day, the petrol prices in Karnataka are displayed across petrol stations in the state and can also be accessed by consumers on the websites and apps of oil companies.

What is the Impact of GST on Petrol Rates in Karnataka?

As of now, VAT and excise duty are applicable on petrol in Karnataka as petroleum products are exempt from the purview of the Goods and Services Tax (GST). Therefore, there is no impact of GST on petrol rates in Karnataka.

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