Davangere in Central Karnataka has booming textile industry and is the trading centre for cotton.. The National Highway 48 runs through this area connecting it to Bangalore, Chennai, Pune, and Dharwad. The petrol price in Davangere impacts the traders and truck drivers the most. Because of its central location, the railways have an important junction in the city. Considering the important highways that run through this area, it helps to know the fuel prices here.
Petrol price in Davangere
Education and agro-processing industries have added economic revenue to the district. Numerous Medium and Small Scale industries related to metal fabrication, wood-based furniture and leather thrive in the district. The petrol price in Davangere is in the range of INR 103.87 – 103.87 for the past 2 weeks. An increase or decrease in fuel prices is a cause for concern. The petrol price in Davangere today is INR 103.87 per litre.
Diesel price in Davangere
Being a commercial trading centre for agricultural produce like chickpeas, maize, sunflower, and rice, traders depend on road transport for their business. Similarly, the transport of cotton yarn, and ready-made garments, to different parts of the country depend on rail and roadways. In calculating the price for trading, fuel charges need to be included. So when prices rise, it affects the budget. The diesel price in Davangere of INR 92.09 per litre.
What predicts the changes in fuel prices?
Crude oil prices largely impact fuel prices in India. The volume of crude oil produced in India does not meet our growing demands. The bulk of our requirements over 80% are imported from OPEC countries.
The Organization of Petroleum Exporting Countries (OPEC) was formed to:
project a common agreed price for crude oil,
maintain a regular supply of oil to the customers and
ensure the fair return of investments for the producers.
Iraq and Saudi Arabia are part of OPEC. For other countries producing crude oil, OPEC+ was established. Russia is part of OPEC+, and India has signed a treaty with them in recent times. The other contributor to India is the United States of America.
OPEC has the power to increase the price of crude oil and Saudi Arabia is a major influencer. The added burden for India is that the cost per barrel is in Dollars. When the value of the USD goes up, INR bears the brunt of it.
Political changes in the world, coups, and invasions affect crude oil prices. Invariably, the supply of crude oil is via sea, rail or road. Any political instability causes a breakdown in supply. War and invasion mean sanctions imposed against the country, which causes immediate price increases. Looking for alternative sources of crude oil at the best prices and dependable supply contributes to changes in fuel prices.
How taxes increase the fuel prices
The tax structure within the country is such – the centre and the state impose taxes. These taxes bring money to the governments to continue their administrative duties. These taxes along with dealer commissions, freight charges, and refining costs are borne by the customer – you.
The Centre charges excise and customs to cover the costs of importing crude oil into the country. The refineries add the refining charges and freight charges for transporting it to the dealers. Dealers in turn add their commission and give it to the State. The State levies VAT. And in some States, additional CESS, education CESS, and local specific tax is levied.
Even when the Centre or State decrease the prices, the government revenue reduces, affecting the people. The social welfare schemes for the State and Centre thrive from the revenue generated from the fuel supply.
How to follow the fuel price changes?
Now that you know the fuel price changes, it is sensible to follow the changes. The news channels flash it on the screens when there is an increase or a decrease. The static display boards at the fuel pumps show the day’s prices. The lesser-known information is that since 2017, a system called dynamic pricing is present. The fuel prices are adjusted every day to accommodate any changes in the crude oil. The refineries update this information to the outlets at 6 am every morning.
With technology in your hands, you can access fuel price changes as it happens through the Park+ app. Daily updates of fuel prices in your city and any state in the country are available at the touch of the screen.