Note : there may be slight variations in prices across outlets within a city
Jorhat, an important city in Assam, is a fast-developing urban center. This Urban Agglomeration has seen a rapid increase in the number of vehicles in recent years leading to rising demand for fuel in the city. This, along with numerous other factors can affect the fuel prices in Jorhat. Hence, this makes it important for the residents of the city to be always aware of any and all fluctuations in fuel prices to budget their monthly expenses accordingly.
The petrol price in Jorhat today stood at ₹98.71 per litre.
The diesel price in Jorhat today stood at ₹91.01 per litre.
There are a number of factors that play a major role in deciding the fuel prices in Jorhat. Some of them include:
Crude oil prices
The price of unrefined oil or crude oil plays the most important role in deciding the petrol or diesel prices in Jorhat. Crude oil is a commodity traded in the global market. There are several factors that affect its price including fluctuating demand, changing production levels, and political instabilities. One major example is the fuel price fluctuations associated with the Russia-Ukraine conflict.
Crude oil is marketed and distributed across India by OMCs. A significant component in deciding the fuel prices in Jorhat is the price that OMCs impose on dealers. This price includes numerous components like refining costs, freight charges, and the profit margins of the OMCs. The profit margins can be very high often and the OMCs contribute to about 15% of the price you pay for petrol at the petrol pump.
The OMCs pay dealers a commission to cover their earnings, expenses, and profits. This is also one factor that goes into determining the cost of fuel.
The number of vehicles in Jorhat has been steadily increasing for some time, especially with the influx of migrant workers. This increase in the number of vehicles causes the fuel demand to rise which leads to a disruption of the demand-supply balance. When the demand steadily increases and there is not much difference in the rate of supply, fuel prices can increase significantly.
INR-USD exchange rates
Since crude oil is a commodity traded in the global market, it is paid for by the OMCs in USD and then the refined product is sold in Jorhat in INR. So, fluctuating exchange rates can have an effect on fuel prices. For example, when the exchange rates become very high, the fuel prices in Jorhat can increase exorbitantly.
Both diesel and petrol are subject to taxation by the central government of India. This tax levied by the government on the production of fuel is added to the final price of the fuel. The state governments also levy taxes on the customers buying fuel in Jorhat. This tax called VAT changes from state to state as the respective state government has the discretion to choose its tax rates depending on the socioeconomic requirements of the state.
Stocking and logistics expenses
The logistics employed in the petroleum sector have some impact on the cost of fuel. Crude oil can be processed only in specific locations, and they need to be transported to consumer locations. So, the end price is also affected by labor costs, electricity costs, and transportation expenses. This price can also vary with the differences in the distance between the manufacturing hub and consumer location.
Petrol and diesel prices in Jorhat can change frequently depending on the global and Indian market conditions. It is necessary for every vehicle owner in Jorhat to stay updated on fuel price changes on a daily basis. Users can easily check the fuel prices on the Park+ App. This app can also be used for numerous other vehicle-related services including checking eChallans, vehicle and owner details, FASTag-related services, finding a car wash, insurance, or parking services, etc.
The petrol price in Jorhat is very important for the smooth operation of local commerce. This is especially so around the tourist season when a lot of revenue is generated in the area. If you are planning to travel to Jorhat or if you live there you need to know the petrol price. Use the Park+ app and track the fuel prices in Jorhat.
Petrol is a refined form of crude oil. Since crude oil is the main ingredient of petrol, any fluctuation in its prices always causes changes in petrol prices. Crude oil is produced in a few countries and powers the entire world. So it is a very valuable resource. Any political unrest in the source countries or issues in transportation or extraction leads to unmanageable increases in petrol prices everywhere, including India.
Different states in India have completely different needs when it comes to diesel. The states which need more have a higher demand and higher diesel prices. Similarly, the states with lower demand have lower diesel prices. The factor that complicates this is the state tax on diesel which is different for each state. This results in further differences in diesel prices across states.