Fuel Price in Jorhat

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.

Petrol price in Jorhat

The petrol price in Jorhat today stood at ₹97.62 per litre.

Diesel price in Jorhat

The diesel price in Jorhat today stood at ₹89.85 per litre.

Factors affecting fuel prices in Jorhat

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.

Profit margins

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.

Dealer commissions

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.

Fuel demand

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.

Taxes

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.

Conclusion

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.