Petrol Price in Meghalaya

Petrol is one of the primary fuels powering our vehicles on Indian roads. Meghalaya, often referred to as the abode of clouds, is hilly terrain. As a state with heavily forested areas, heavy rainfalls, and rich biodiversity, it attracts a lot of tourism. As a matter of fact, in 2019, tourist numbers stood at 0.03 million and 1.25 million, respectively for foreign and domestic travellers.

 

For the same reason, the state of Meghalaya is also a major supplier of very rich minerals like limestone, coal, briquettes, quartz, granite, industrial clay, uranium etc. There is a lot of activity in the state for industries that are rooted in farming products like agriculture and food processing, floriculture, horticulture, handicrafts and sericulture industries. We also see a considerable number of mineral-based or tech-based industries like mining, cement, and hydroelectric power.

 

Transportation is therefore a big part of the state’s economic & industrial life. And that signifies the importance of fuel prices. Let’s have a look at the petrol price in Meghalaya today.

Petrol prices in India are updated on a daily basis. This update happens at 6 in the morning. You might be wondering why that happens? This is so the local petrol prices can be aligned with the changes or fluctuations in the global oil prices. So fuel users & dealers are able to transact on the most updated, latest rates of petrol. This is why the petrol price in Meghalaya will be different every day.

 

Of course, when the fuel prices rise up, it has a direct and heavy impact on any individual or family budget. If you have a long commute, a road trip or sightseeing plans, account for the price of petrol beforehand in your budget.

 

While a number of factors contribute to the Meghalaya petrol price amid the ever-increasing demand, you can now save on fuel expenses with your credit card. Yes! With the right credit card, you can avail petrol and fuel surcharge waivers every time you transact at a partner fuel station across the country. So browse through the Bajaj Markets’ list of credit cards and apply for a credit card, today!

 

Now, let’s explore the factors that influence petrol prices in detail:

• Crude oil

Crude Oil is the main component that goes into petrol. It’s a valuable resource, with reportedly only 1.5 trillion barrels of oil reserves left inside the earth’s ground. On top of that, India imports the majority of its crude oil.

 

The cost of petrol, therefore, encompasses the cost of extraction and refining of the crude oil, the freight charges, the refinery charges.

• Rupee to US dollar exchange rate

Since India imports most of the fuel needs, the currency exchange rate also becomes an important determinant in the process. Also, when international crude oil prices rise, so do the petrol prices in Meghalaya.

• Excise Duty, Value Added Tax (VAT), and other taxes

Before we arrive at the Retail Selling Price (RSP) for petrol, there are taxes and duties to be accounted for. As a matter of fact, these account for almost 50-60% of the Meghalaya petrol price.

 

These charges include Excise Duty, VAT, Central Excise Duty, etc. The VAT charges vary from state to state. Each state takes their call on the VAT percentage, depending on how many funds they aim to shore up. States earned as much as Rs. 2.02 lakh crore 1 in 2020-21 through the VAT on petroleum products.

• Dealer’s Commission

The final price of the petrol also includes the dealer’s commission & other charges related to the dealer.

Petrol price in Meghalaya follows the dynamic fuel pricing concept. In accordance with this method, the petrol prices change every day at 6 am. This price takes into account the global and domestic market factors and incorporates those trends into the petrol prices.

Fuel is not currently under the ambit of the Goods and Service Tax (GST). If petrol prices in Meghalaya were to be subject to the GST, then the fuel rates would go lower.