Petrol and Diesel Prices in West Bengal

Fuel prices in West Bengal are among the highest surcharges across India. The prices get affected by inclusive factors like the Ukrainian crisis and crude oil prices in the international market. Besides, India imports nearly 85% of its oil to meet surging consumer demands.

If you want to calculate daily fuel consumption, this blog provides intricate details about the latest petrol/diesel rates in West Bengal. It also informs you about how fuel surcharges get decided and how it affects the economy and daily life.

Let's dive in to understand the petro prices in West Bengal.

Petrol prices in West Bengal

The petrol prices in West Bengal currently range from INR 104.31 to around INR 106.43 across 23 districts. The gasoline price gets revised daily at 0600 hours and fluctuates depending on underlying factors like centre/state VAT, excise duty, and dealer commission. Nearly 35% of the fuel consumed in West Bengal is petrol.

Unlike many states, the West Bengal government has not waived VAT, leading to inflated petrol rates compared to the national average price. Petrol rates in West Bengal get decided based on the additional surcharge levied by the state government. It includes:

• 25% or INR 13.12/l (whichever is higher) state excise duty on petrol

• Central excise duty (INR 19.90/l)

• Dealer's commission

Diesel prices in West Bengal

Diesel is a cheaper fuel alternative than petrol. Besides, it offers more mileage than petrol and comprises 65% of motor fuel consumed in West Bengal. Diesel prices in West Bengal vary between INR 91.13 to INR 93.14. It's dearer than the national diesel average price as the state government has not waived the existing VAT.

Diesel prices undergo daily revision at 6 am according to the fluctuation of the underlying factors like crude rate, forex value, and consumer demand. Diesel rates in West Bengal also depend on the tax structure that includes:

• 17% or INR 7.70/l (whichever is higher) state excise duty on diesel

• Union government charges INR 15.80/l excise duty on diesel

• Dealer commission

What factors trigger fuel prices in West Bengal?

Petrol prices in West Bengal undergo daily revision, meaning the fuel cost you pay incurs the dynamic crude oil rate and market fluctuations. Check out the underlying factors that trigger petrol rates in West Bengal:

Global crude oil rate

India depends on imports to meet the domestic demand for surging fuel consumption. OPEC+ controls the crude oil rate, which has seen unprecedented fluctuation since COVID-19 and the ongoing Ukrainian crisis.

Dealership cost

Retail fuel charges escalate when crude oil price inflates. Local dealers buying fuel from oil marketing companies charge extra to manage profit percentage.

National and regional excise duty

Petroleum products are yet to come under GST, meaning both centre and state governments charge excise duty. In West Bengal, the excise duty on petrol is 25%, and diesel is 17%. Besides, the central government charges 20% and 17.6% on petrol and diesel, respectively.

Forex rates

India mostly buys crude oil using $ as the standard currency. Currently, USD/INR is trading over 82, making crude imports costlier than in previous financial years. It affects overall fuel retail prices.

Crude oil barrel production rate

OPEC+ nations market crude oil based on barrel volume. Since COVID-19, the production of oil barrels has seen a significant reduction to prevent the sliding of crude prices in the international market. It has led to higher demand from the lesser supply, maintaining steady oil prices and hence a greater retail fuel rate.

What are the side effects of soaring fuel prices in West Bengal?

Fuel is an essential commodity for consumers, making it a lucrative taxable item for union and regional governments. Fluctuating petrol prices in West Bengal are among the leading reasons for GDP fiscal deficit and poor economic growth. Here's more about the side effects of increasing fuel prices:

• Risk of retail inflation from enhanced % of CPI (consumer price index)

• Marked reduction in consumer spending

• Increase in cost of transport

• Dip in fuel consumption

Conclusion

Petrol prices in West Bengal will stay dynamic in the future. But you don't need to worry about fluctuating mileage costs, as Park+ will take care of all your vehicle issues from here. Whether FASTag or car insurance, you can rely on Park+, for simplified car ownership experience.