Today Petrol Price in Rajasthan is INR 109.53 per liter and Diesel Price in Rajasthan today stand at INR 94.66 per liter.
Petrol and Diesel prices in Rajasthan are revised regularly as per India's dynamic fuel pricing system.
Several factors influence Petrol and Diesel prices. So, it becomes hard to keep track of fuel prices.
But if you know about all the factors that influence fuel costs, you can understand their pricing trends.
So, let's take a look at what determines the price of petrol and diesel you pay in Rajasthan.
Today's Petrol Price in Rajasthan is INR 109.53 per liter.
The petrol price in Rajasthan is revised daily. This system of daily price revision is called the Dynamic Pricing System.
The Dynamic Fuel Pricing System was brought into effect in June 2017. As per this system, the fuel prices in India are revised every day. So, the fuel prices are now revised every morning at 6 AM.
An important component of the petrol price in Rajasthan is the VAT.
The Value-Added Tax or VAT is a tax levied by the state government. Factors influencing the VAT include excise duty, the commission of dealers and more.
Since this component is different for every state, you see a different price in every state. Rajasthan has had one of the highest VAT rates in the nation for the past few years.
The Diesel Price in Rajasthan Stand at INR 94.66 per liter.
The diesel price in Rajasthan is also determined by the dynamic fuel pricing system. Thus, you see daily fluctuations in diesel prices as well.
The state governments charge a VAT on diesel too. But just like the central excise duty on diesel, the VAT on diesel is also lesser than petrol.
Apart from the state VAT, several other factors affect the fuel prices in Rajasthan. Let's take a look at them in detail.
Unrefined Oil or Crude Oil is used to produce fuels like Petrol and Diesel. Now, crude oil is an international commodity. So, any changes in the global demand and supply ratio of Crude Oil influence its cost.
Also, international political relations and future oil reserves are crucial to Crude Oil prices.
Now, India relies on imports for about 84% of its crude oil requirements. So, any change in the crude oil price has a direct impact on your fuel costs.
The central government of India exacts an Excise Duty on Petrol and Diesel. But instead of a percentage, it is a fixed amount charged per litre.
So, the excise duty remains the same regardless of the fluctuations in fuel price.
The excise duty on both petrol and diesel has increased significantly over the past years few years.
The excise duty on petrol was ₹ 9.48 per litre in 2014. But as of May 2022, it has risen to ₹ 19.90 per litre.
Similarly, the excise duty on diesel went from ₹ 3.56 per litre in 2014 to ₹ 15.80 per litre in 2022.
India purchases crude oil from international markets. So, these purchases are made via the US Dollar.
So, if the US Dollar rises in value against the rupee, the Indian government has to pay more for the same amount of oil.
Ultimately, this leads to increased fuel prices for the end consumer.
Oil Marketing Companies such as IOCL, HPCL and BPCL acquire and distribute crude oil to dealers. They charge dealers based on factors like freight charges, refining costs and more.
Also, the OMCs pay a certain commission to the petrol pump dealers. The dealers then manage their expenses with the commission amount. They also exact their profits from the commission itself.
So, the fuel cost for the dealers has a direct impact on the price paid by you.
As stated above, the Dynamic Fuel Pricing System is a daily price revision system.
But before this pricing system, the fuel prices were revised every fortnight. So, the fuel prices did not reflect the changes in global crude oil prices until 15 days.
Thus, the government introduced a faster daily price revision system.
In this system, the government does not actively control fuel price revisions. So, this dynamic system is, in a sense, deregulated.
The crude oil price becomes the most important variable within this system. Thus, the international markets directly control the final fuel prices.
The petrol and diesel prices in Rajasthan are thus on the move due to several factors. The central excise duty, VAT, crude oil prices and value of the Indian rupee can help you track the changes in fuel prices.
But it is not possible to predict the exact prices as they are revised daily. You can only trace the upward or downward trends to plan and manage your finances ahead.
Use the Park+ App or website to track petrol and diesel prices over the week. You can track the prices in your city to schedule your refillings and save money.
Set up notifications for reminders and plan your monthly expenses based on everyday fuel prices.
The petrol prices are revised daily. So, you will see some changes in the petrol price in Rajasthan daily. But even after daily revision, the price does not vary drastically. The difference is usually in decimals. A drastic fluctuation is caused if crude oil prices suddenly go up or down. The only other possibility is if the central or state government revises the tax.
Fuels like petrol and diesel also have a limited supply like other products. So, if the production levels do not match the demand, the price increases. But the governments can choose to manage such a price rise by controlling the taxes.
The centre and state governments rely heavily upon excise duty and VAT for their revenue. Replacing these taxes with GST would severely impact government revenue. However, the consumers would experience much relief with GST on fuels. The maximum tax bracket of GST is 28%. So, compared to the current fuel taxes, it is significantly lower.