Note : there may be slight variations in prices across outlets within a city
The coastal city of Kozhikode is the largest urban area in Kerala. The central beach here draws tourists from all over the world. The old lighthouse near the beach also functions as a great sunset-watching spot. Westerners flock to this place to see mesmerizing backwater locations and call it "Venice of the East". The city boasts a robust transport system.
Being a tourist hub, Kozhikode generates a large part of its revenue from the transportation system. Not only this, but the residents also prefer to drive their own vehicles. This increases the consumption of petrol and diesel in the city. So, the fluctuations in diesel and petrol price in Kozhikode has a direct correlation with the city's overall economic condition.
In this article, we will learn more about the petrol and diesel price in Kozhikode and find out what is affecting them. Read on!
The petrol price in Kozhikode today is INR 108.27 per litre.
It is to be noted that the fuel price is inclusive of the central tax duties and the Kerala state tax duties.
The Kerala government is keen on collecting high tax revenues on the sale of petrol here, which is a major contributing factor to the rising cost.
Currently, the diesel price in Kozhikode is INR 97.18 per litre.
Diesel is a vital commodity here as private buses, auto-rickshaws, and taxis are dependent on it. However, similar to most other cities, petrol prices are higher than diesel. This is because of the more expensive refining process of petrol, even though both are a derivative of crude oil.
The stronger the US dollar gets in comparison with our currency, the cost of diesel also goes up. The increasing crude oil cost amid global political tensions doesn't help either.
Apart from the huge impact on human lives, the ongoing war has a great business impact as well. It has disturbed several supply chains, industries, and economies.
As of right now, the energy industry finds itself in an uncertain environment. Before the conflict, oil prices were rising steadily. However, after the first attack of Russia on Ukraine - the price of crude oil in the international market shot up drastically. It increased to around $110 per barrel from $76 per barrel in March 2022. Along with the post-pandemic supply chain shock and poor investment in the oil industry, the supply and demand imbalance continues to grow.
As Russia produces an average of 11 million barrels of liquid fuel per day, Europe was affected due to its high dependence on Russia for oil and gas. Countries like the US, and the UK got into banning the import of Russian oil shortly after the conflict began. Europe did the same by limiting hydrocarbon imports by 66%. As a result, prices of oil and gas became incredibly expensive in countries all around the world.
The massive economic sanctions and stringent foreign policy measures worsened the supply-demand balance of crude oil. As many countries struggle to cut off their dependency on Russian oil, investment in local renewable energy sources has grown.
For example, in Norway more than 70% of all the vehicles sold in the last six months were electric. On the other hand, Germany is already planning to extend the functionality of its nuclear plants and re-embracing coal mining. India, too, is trying to reduce its dependency on crude oil by promoting electric vehicles. However, till those become more popular, monitoring the regular changes in petrol and diesel prices is essential.
So that was all about the petrol and diesel price in Kozhikode. If you would like to know more about the daily ups and downs of fuel prices in Kozhikode and other cities, download the Park+ app from Google Playstore today. It is a super easy-to-use app that will help you monitor the price of petrol and diesel in Kozhikode with just a few clicks.
Also in other cities, this is the case. While both petrol and diesel are derivatives of crude oil, the refining process in the case of petrol is much more complex.
Furthermore, petrol and diesel are taxed differently. So, the higher taxes also increase the final price of petrol for consumers.
Europe is mostly dependent on Russian gas for most of its energy needs for homes and industry. Over 40% of the total energy requirement comes from Russia.
All European countries are taking aggressive strides to reduce dependency on Russia by reducing demand and taking help from other countries. This is increasing the global demand for oil and gas.
Countries like Japan, South Korea, and China, which are heavily dependent on natural gas, are suffering from high prices.
Even though India is the third-largest consumer of oil, it only imports 2 per cent of its total oil requirement from Russia. The bulk of India's oil comes from the US and the Middle East.
So, it is not Russian oil that has India worried, but the overall rising oil prices.