Uttarakhand is the least consuming state in Northern India in terms of petrol and diesel sale. Retail petrol prices in Uttarakhand are lower than the national average, thanks to the moderated excise duty collected by the state government. However, fuel prices fluctuate for associative reasons like forex spikes, crude availability, and excise duty over the original dealer's price.
Fuel consumption in Uttarakhand amounts to nearly 2.0% of the total diesel and petrol retail sales percentage in India (FY 2021-22). The provisional amount of diesel sold through retail outlets is over double the petrol consumption in Uttarakhand. Read this article to know more about the %VAT on motor fuel. If you need the latest updates on the petrol price in Uttarakhand, download the Park+ app today.
Uttarakhand recorded a sale of 338.4 TMT of petrol from fuel pumps, amounting to nearly 1.1% of the national petrol retail sale. Petrol prices in Uttarakhand lie between INR 94.3 to INR 97.8. While it accounts for the lowest consumption among the Northern states, the moderate prices ensure ease of lifestyle among the residents in the Devbhoomi.
Petrol rates vary across Uttarakhand, spread over 13 districts. Besides, the rate is subject to daily revision at 0600. Here's more on the tariff duty broken down to highlight how much you pay for a fuel litre in Uttarakhand:
State excise duty is 16.97% or INR 13.14/l (whichever is greater)
INR 19.90/l of petrol (central excise duty)
Dealer commission (around 5%)
Uttarakhand is among the top states in India to house pharmaceutical manufacturing hubs. Diesel and petrol prices in Uttarakhand stay lower than the national fuel price average. We have highlighted three reasons that have the highest impact on fuel prices. Here are the top three factors:
Nearly 85% of Indian crude is of import origin. Besides, India uses USD to import crude oil, meaning the retail prices depend on the forex value of USD (which fluctuates daily) and the quantity of crude available at convenient pricing. It makes a competitive margin if the above parameters are stable to maintain lower petrol prices in Uttarakhand.
Uttarakhand reached a provisional fuel demand worth 1140 TMT in FY 2021-22. It leads to higher consumer demand otherwise replenished through a steady supply of imported crude oil. Fuel prices soar when there's retail demand but fluctuating availability, making you pay more per litre.
Motor fuel is among the most lucrative excise commodities. The state government of Uttarakhand charges a VAT of over 17% on petrol and diesel. Besides, dealers' commission and uniform central excise duty make motor fuel in Uttarakhand one of the most expensive commodities.
Soaring petrol prices in Uttarakhand disrupt consumer spending behaviour and affect the surrounding pharmaceutical manufacturing sectors. Since Uttarakhand is the seat of pharma across India, expensive fuel prices can affect the MRP of emergency medicines. Now, let us learn more about the side effects and consequences of the sudden soaring fuel prices in Uttarakhand:
Reduction in pharmaceutical production rate
Fall in retail sales of fuel
Low spending budget
Can trigger salary cut
Reduced trade and commerce
Consumer price index (%CPI) increasing from retail inflation.
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