Petrol Price in Indore Today

Petrol Rates in Indore

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

What are the Factors Determining the Petrol Rates in Indore?

Petrol rates in Indore can change depending on various factors. The cost of crude oil in the international market directly influences the final price of petrol in Indore. As the transactions relating to the purchase of crude oil are completed in US Dollars, the value of the USD against the Indian Rupee (INR) is also crucial while determining the final petrol cost.

On a local level, refinery and freight charges levied by oil marketing companies (OMCs) and commissions for dealers also add to the final price of petrol in Indore. Furthermore, the Madhya Pradesh state government adds the value-added tax (VAT) as part of the petrol tax in Indore, while the central government imposes excise duty on the product.

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How are Petrol Prices in Indore Computed?

Indian OMCs have to import crude oil from international markets before selling it retail to consumers. To start with, the cost of crude oil in the global markets is the first variable in computing the petrol price for the day. Additionally, OMCs have to pay in USD to purchase crude oil from international markets. Thus the USD to INR exchange rate is one of the primary factors that needs to be taken into consideration while computing petrol prices. To this, we need to add the central excise duty, the processing costs incurred by OMCs to refine petroleum from crude oil, and the dealer commissions. Finally, since every state in India levies its own VAT to the petrol price, the final petrol price in Indore can be computed by adding the Madhya Pradesh state-levied VAT to it. In a nutshell, we can sum up it as:

Petrol Price in Indore = Global crude oil prices + excise duty + OMC costs + Dealer Commission + State-levied VAT

How Often is the Petrol Rate in Indore Revised?

Since June 2017, India has implemented the Dynamic Fuel Pricing mechanism, which means that the petrol rate in Indore is revised daily. The price of petrol in Indore is reset across different stations every day at 06 AM. This process encourages competitiveness and provides transparent fuel pricing.

The petrol prices for any given day are displayed at retail petrol outlets across the city. Consumers can also check the petrol price rate in Indore on the websites and apps of oil companies.

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

As of now, VAT and excise duty are applicable on petrol in Indore as petroleum products do not fall under the purview of the Goods and Services Tax (GST). Hence, there is no impact of GST on petrol rates in Indore.

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