|Sri Sathya Sai
Today's Petrol Price in Andhra Pradesh is INR 111.87 per liter.
The petrol price in Andhra Pradesh stays between INR 110.48 to INR 112.87. These keep fluctuating due to dynamic pricing, which is explained below. The state has one of the highest prices of fuel in the country. The petrol prices have been determined daily at 6:00 am since June 2017, after implementing a new scheme. It takes a big event to influence the cost of fuel greatly. For instance, the average price was reported at INR 111.87 today. It has stayed the same since then, with minor ups and downs. Some factors that decide the cost of petrol are Rupee to US dollar exchange rate, global cues and fuel demand.
The Diesel Price in Andhra Pradesh Stand at INR 99.58 per liter.
The diesel price has recently been under INR 100, which is less than the petrol price in Andhra Pradesh. A new scheme was implemented in June 2017. Diesel prices are revised daily under this scheme. This method is known as dynamic pricing. Before this method was implemented, prices were decided each fortnight. International factors highly impact diesel prices. Prices in India move higher whenever there is a price gain in the global crude oil price. Some elements adding to the fuel cost are global cues, fuel demand and exchange rate.
You should know the method behind deciding the petrol price in Andhra Pradesh. Dynamic pricing is also known as time-based pricing or surge pricing. The changes in fuel prices are based on external conditions. This method has both pros and cons. Price-gouging and price-slashing occur commonly with dynamic pricing. But, dynamic pricing helps many energy producers earn a profit on sales.
Many variables in the market influence price change. Dynamic pricing works on an algorithm of sorts based n different market conditions. Even the season has a role in impacting it. For instance, flight prices increase during the holiday season, changing the flight fuel prices. Additionally, inventory levels and supply and demand play a role too.
A differential pricing mechanism is the opposite of this method. It sets prices based on the kind of customers buying a product. Even the purchase time impacts this. Dynamic pricing is preferred as it gives flexibility to sellers and buyers. It allows the margin and does not cause an immediate surge.
Let's elaborate on the main factors which affect the petrol price in Andhra Pradesh:
Price of Crude Oil
Crude oil prices are dependent on market conditions. In turn, they impact petrol prices significantly. Demand and supply, international affairs, and oil reserves affect the cost of crude oil.
All fuel dealers receive a certain amount of money through commission. Oil Marketing Companies pay this commission. It is a part of the earnings they make and the profits too. Ultimately, the dealer's commission highly impacts the petrol price in Andhra Pradesh.
Cost for dealers
Oil Marketing Companies(OMC) impact fuel prices across the nation. Based on this, the dealers take a specific commission to meet profits. Factors such as refinement and freight also affect the prices they decide. The final price is then available for the buyers to fill with fuel.
Demand and Supply
The price of a necessary commodity is highly dependent on its demand and supply. The fundamental law of economics plays a huge role here. So, high demand and lack of supply cause a surge in petrol pricing. This impacts the petrol prices and levied taxes in India.
Value of INR against USD
A significant chunk of crude oil is imported internationally. The transaction is decided in USD. Hence, if there is a USD change, it impacts INR. This increase leads to a rise in the purchasing price.
Central Excise Duty
Apart from the specific price of a state, the central government also levies excise duty. It is a pre-decided amount which is added to the fuel prices. It does not impact dynamic pricing as much since it does not fluctuate with crude oil.
Sales Tax in the state
Each state imposes a state tax. This tax is decided on the other factors mentioned in this list. In a nutshell, the excise duty, the dealer's commission, and crude oil prices impact the state's sales tax.
The petrol price in Andhra Pradesh is based on many factors. They keep fluctuating with the trends in the world. However, right driving practices can still be a saving grace in an unpredictable economy. Irrespective of fuel woes, parking right will always help customers be happy.
During independence, a litre of petrol was available for about 27 paise. At the time, an air ticket cost around 140 rs.
While this may change on a regular basis, the highest fuel price is generally in Andhra Pradesh and Telangana.
The lowest fuel prices are generally in Uttar Pradesh, Pondicherry, Gujarat and Haryana.
Factors like labour costs, taxation, global market dynamics and exchange rates determine fuel prices.
Currently, diesel is cheaper as compared to petrol price in Andhra Pradesh.