Petrol Price in Rajasthan

Petrol Price in Rajasthan on Apr 19 2024

The Petrol Price in Rajasthan is ...

How are Petrol Prices in Rajasthan Computed?

Different components of the price breakup of petrol in Rajasthan include the followings:

• RSP = Price of crude oil (includes freights) + the primary excise + Refinery Transfer Price + OMCs’ profit margin + commission charged by merchants + VAT + pollution cess.
• Over 80% of India’s crude oil is imported from overseas oil-producing countries. Domestic production only serves the remaining 20%. The expense acquired by Indian oil retailing companies to buy crude oil is called COB (including freight charges). Oil marketing corporations also acquire the refinery transfer price (RTP), refineries charging crude oil into petrol.
• VAT: Value-added tax is imposed by the state government on petrol. VAT varies from state to state. As of 1 October 2018, the tax rate charged on petrol was 32.91%.

The retail selling price of petrol in Rajasthan is the sum of all the aforementioned cost factors.

Factors Affecting Petrol Prices in Rajasthan

• Free On Board Price (FOB): The price paid by Indian oil marketing companies to import crude oil from overseas corporations.
• Freight: The price paid to a transporter for the imported crude oil, is called ocean freight. When ocean freight is added to the FOB price, we get cost and freight price.
• Import Charges: Import charges comprise of 3 charges: (i) insurance charges, (ii) port dues, and (iii) ocean losses. The premium paid to an insurance service provider (ISP) for the insurance cover is called insurance charges. Port dues are the charges paid for using the facilities of a port.
• Customs Duty: It is a tax imposed by the government on imported crude oil. As of February 2022, it is charged 2.5% of the cost and freight price.
• Refinery Transfer Price: It price is the price repaid by oil marketing companies to refineries for buying petrol.
• Inland Freight: It is the price paid by oil marketing companies for transporting petrol from refineries to retail markets.
• Depot Price: It is the price paid by retail petrol owners to buy/import petrol from oil marketing companies.
• Excise Duty: The tax that the central government imposes on petrol. It remains identical throughout the country.

Impact of GST on Petrol Rates in Rajasthan

The GST regime taxes all kinds of goods and services under 4 tax slabs, which are

• 5%,
• 12%,
• 18%, and
• 28%.

The lowest rate fixed by the GST Council to date is 5%, and the highest rate is 28%. 5 petroleum products, including petrol, have been kept outside the regime of GST. Even though petrol is taxed at the highest rate, the state and central governments’ revenue will be significantly affected. Hence, the GST structure does not impact petrol prices in Rajasthan.

Diesel Costs vs Petrol Costs in Rajasthan

As of 1 March 2022, the mean petrol price was Rs. 93.86, whereas diesel’s mean rate was Rs. 83.86. Petrol rates in the state are expected to marginally rise over the next few months.

News Snippets

Petrol rates at Rs.100/litre for the 1st time in Sri Ganganagar

In Rajasthan’s Sri Ganganagar region, petrol prices have risen to cross the Rs.100 per litre mark for the 1st time at Rs.100.13/litre. This was the first time petrol rates had crossed the Rs.100/litre mark anywhere in the country. In other states, the prices were varying around the Rs.90 per-litre region.

Petrol, diesel prices to get lower in the state after 2% VAT cut

The Rajasthan Government reduced the Value-added tax (VAT) on diesel and petrol by 2%. From now, a VAT of 26% will be applicable on diesel and a VAT of 36% on petrol.

For the last 3 days, the petrol price is Rs. 97.34 per litre and diesel is Rs. 86.02 per litre in Jaipur.

The price of petrol today was Rs. 97.79 and diesel was Rs. 84.62/litre in Jaipur.

If you have any queries regarding the fuel prices in any of the states or union territories of India, please visit Dialabank.

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