Petrol Price in Punjab

Petrol Price in Punjab

Petrol Price in Punjab ₹ 98.28 per litre. Patrol prices can change daily, and there are things beyond our control that affect these prices. Some of the reasons patrol prices fluctuate on a daily basis are global crude oil prices, global currency exchange rates, government levies (both Federal and State) and local government charges (such as VAT). As the tax and transportation costs for patrol are different in each city, the overall price of patrol will vary from city to city. When individuals know the average cost of patrol, it is easier for them to manage their transportation needs and financial obligations.

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Today’s Petrol Price in Punjab

The average price of petrol in the state of Punjab is about ₹ 98.28/litre. This average can vary from city to city and can also vary based on local taxes. Each petrol station may have different prices from each other due to this variance. Prices are adjusted and changed daily, typically early in the morning, based on current fuel prices.

Last 7 Days Petrol Price In Punjab

Petrol Price in other cities of Punjab

Major Factors Affecting Petrol Price in Punjab

1. Global Crude Oil Prices.

The rates for Crude Oil on a global scale are a major driver for the prices of Petrol in the Punjab. If the global price rises, then Petrol prices in the Punjab will also rise. Conversely, if the global price goes down, then Petrol prices are likely to fall.

2. The INR-USD Exchange Rate.

The price of oil imports is paid for in US Dollars. Therefore, if the INR loses value compared to the USD, then the price of Petrol will increase.

3. Federal GST Collection

As with all items classified under the GST Act, there is a Federal GST component on Petrol; included in the calculation of the cost of petrol are the amounts included in the Federal GST. All state governments charge the same Federal GST regardless of where petrol is purchased.

4. State-Base VAT

Since Punjab has implemented a state-based VAT on fuel, it has increased the amount that consumers pay per litre. Given that other states also have their own state-based VATs at varying values, this impacts the final retail price of petrol across the country.

5. Dealer Commission/Transport Costs

Fuel station dealers receive a standard dealer commission to sell fuel. This comes in addition to transport costs associated with transporting fuel from distribution centres to their locations, usually more pronounced in rural areas than urban centres.

How Petrol Prices Are Calculated in Punjab

1. Base Price (Before Refining)

After crude oil is refined, Oil Marketing Companies (OMCs) establish a base price which consists of costs associated with refining, processing, and freight for transporting the refined petroleum.

2. Transportation and Freight Costs

Petrol is transported from refinery locations to depot locations and finally delivered to retail locations. The costs incurred in these transportation stages are added to the base price. The farther the depot from the retail location, the higher the transportation costs.

3. Central Excise Duty

Petrol has a Central Excise Duty collected by the Federal Government and is one of the major components of the cost of petrol. All states impose the same Central Excise Duty, regardless of where petrol is purchased.

4. Dealer Commission

The dealer commission represents a certain percentage of fuel sold through each station and is charged to the consumer as part of their total cost at the pump.

5. VAT – (Value Added Tax)

The Value-Added Tax (VAT) charged on Petrol by the state of Punjab is determined by the individual state governments on their own terms; thus, the VAT applied to each state is different and affects how much consumers pay when filling up their vehicles with Petrol. The Retailer must include the amount of VAT in the total price paid by the Consumer when purchasing Petrol.

6. Final Retail Selling Price

Retail selling prices (RSPs) for Retail Fuel are established by taking the aforementioned components and adding them together to arrive at a total price displayed on the pump for gasoline; this price is subject to a daily review in the event the Fuel Price is changed under Pricing Mechanism legislation.

Impact of Petrol Price on Everyday Life in Punjab

1. Increased Transportation Costs

Rising petrol prices lead to higher costs of travel for daily commuters, private automobile owners and users of public transport services, which results in an increase in monthly household expenses.

2. Costs Of Transportation

As prices for Transport increase, it has a significant impact on the cost of transportation and ultimately the cost of all Goods and Services. The rising price of Transport will directly affect the prices of all Basic Needs, Food, Self-catering Supplies, and Consumer Products.

3. Impact on Agriculture & Rural Economy

Farmland relies on tractors, trucks and water pumps (fuel diesel) for energising its operation; with the increased price of gasoline and diesel comes an increased cost of production, which results in a reduction in production capacity for farmers as well as future income to farmers.

4. Pressure on Small Businesses

Delivery Companies, local and storefront providers, are all experiencing increased transportation and logistics-related expenses. The increased cost of transportation and logistics affects these small enterprises’ revenue stream, which in turn has a negative effect on consumer pricing for products and services.

5. Declining Disposable Income.

With a rise in the cost of fuel, families will have less disposable income to spend on other needs, such as shopping, entertainment, savings, etc. Thus, there will be a negative impact on the overall health of the state’s economy.

6. The Effect of Fuel Price Increase on the Ride Sharing & Delivery Industries

Ride-sharing and delivery services (i.e., Ola, Uber, Zomato, Swiggy) respond to increases in fuel prices by passing the increased costs onto customers.  This creates a ripple effect that has dire financial consequences for consumers as well as drivers affiliated with these rideshare/delivery services.

How to Check Petrol Price in Punjab Online

1. Oil Marketing Companies’ Website Information

Primary Oil Marketing Companies, IOCL, BPCL, and HPCL post petrol rates on their respective websites each day based on the Dynamic Pricing System.

2. Mobile Applications for Daily Fuel Price Updates

Mobile applications, including those created by IOCL, HPCL, and other parties, provide accurate petrol price postings based on the location of a user and a variety of factors that affect price determination.

3. Instant Price Check SMS Service

Send an SMS to receive the most up-to-date petrol prices for the following oil companies:

1. IOCL:  SMS with the prefix “RSP” and the dealer code to 92249 92249.
2. HPCL:  SMS with the prefix “HPPrice” and the dealer code to 92222 01234.
3. BPCL:  SMS with the prefix “RSP” plus a space and the dealer code to 92231 12222.

4. Fuel Price Aggregation Sites

The following websites provide daily updates about regional petrol prices, like Indian Price Update.

Conclusion

In the state of Punjab, the price of petrol impacts people in their daily lives and on the economy. Consumers who check official government websites and mobile fuel price aggregation sites on a regular basis will have the ability to plan how to travel and will save money. When consumers understand the factors that go into determining prices for fuel, they will know when it will be time to start budgeting for additional fuel costs, as well as how much those incremental costs are likely to be for themselves for their families and their business. When consumers become accustomed to fluctuations in gasoline prices, they will be better able to function/react to the frequency of price increases that occur at the gasoline pump, in addition to the effect of various daily pricing on how they live their lives from a financial standpoint.

FAQs

Why do petrol prices change on a daily basis in Punjab?

The global market for petrol has a wide variety of variables affecting the overall price of petrol, including federal and state taxes, exchange rates (Currency Exchange), and oil refiner costs to produce petrol.

Why are petrol prices different from city to city across Punjab?

There are a number of factors that contribute to differences in the price of petrol across Punjab, including the cost to transport the petrol, the costs of running retail gasoline outlets, and the state taxes/sales tax applying to that region.

Where can I find the current price of petrol in Punjab?

You can obtain daily fuel price updates from the official website of the Indian Oil Corporation (IOCL), fuel price tracking apps, or by calling the fuel prices on your computer or Smartphone, and/or by utilising mapping and GPS services in order to locate a fuel dispenser to get the most accurate fuel price in India.