Petrol Price in Tamil Nadu

• The petrol price in Tamil Nadu started at Rs. 85.31 per litre on 1st December
• In the last week of December, the prices closed at Rs. 86.51 per litre, which is also the highest rate of petrol.
• The trend of change is rising.
• The overall price change reads at +1.39%

The trend of Petrol Price in Tamil Nadu for November 2020 (rates per litre):

• The petrol price in Tamil Nadu started at Rs. 88.15 per litre on 1st November
• In the last week of November, the prices closed at Rs. 85.31 per litre, which is also the highest rate of petrol.
• The trend of change is rising.
• The overall price change reads at +1.37%

The trend of Petrol Price in Tamil Nadu for October 2020 (rates per litre):

Monthly Petrol Price Trend in Tamil Nadu for October 2020:

• The petrol price in Tamil Nadu started at Rs. 84.14 per litre on 1st October
• In the last week of October, the prices closed at Rs. 84.14 per litre, which is the highest as well as the lowest price.
• The trend of change is constant (no change).
• The overall price change reads at 0%.

The trend of Petrol Price in Tamil Nadu for September 2020 (rates per litre) :

Monthly Petrol Price Trend in Tamil Nadu for September 2020:

• The petrol price in Tamil Nadu started at Rs. 85.11 per litre on 1st September and continued till 7th September, which was the highest price.
• In the last week of September, the prices closed at Rs. 84.14 per litre, which was the lowest price that month, recorded on 24th September.
• The trend of price change is declining.
• The percentage change reads at -1.07%.

How are Petrol Prices in Tamil Nadu Computed?

Different components of the price breakup of petrol in Tamil Nadu include the followings:

• RSP= Price of crude oil (includes freights) + the primary excise + Refinery Transfer Price + OMCs’ profit margin + commission charged by merchants + VAT + pollution cess.
• Over 80% of India’s crude oil is imported from overseas oil-producing countries. Domestic production only serves the remaining 20%. The expense acquired by Indian oil retailing companies to buy crude oil is called COB (including freight charges). Oil marketing corporations also acquire the refinery transfer price (RTP), refineries charging crude oil into petrol.
• Pump owners also charge a particular percentage of profit margin for providing petrol. This may differ within the towns of Tamil Nadu. The share imposed by petrol bunks, which are more proximate to supply stations, is smaller than that of petrol pumps far from supply stations. Among all Indian states, the central excise duty imposed on petrol is identical, but VAT changes from one state to another. As of 1 September 2017, the state government of Tamil Nadu taxes petrol by 36.04%.

Factors Affecting Petrol Prices in Tamil Nadu

• Freight: The price paid to a transporter for the imported crude oil is called ocean freight. When ocean freight is added to the FOB price, we get cost and freight price.
• Free On Board Price (FOB): The price paid by Indian oil marketing companies to import crude oil from overseas corporations.
• Customs Duty: It is a tax imposed by the government on imported crude oil. As of February 2021, it is charged 2.5% of the cost and freight price.
• Excise Duty: The tax that the central government imposes on petrol. It remains identical throughout the country.
• Import Charges: Import charges comprise of 3 charges: (i) insurance charges, (ii) port dues, and (iii) ocean losses. The insurance service provider (ISP) premium for the insurance cover is called insurance charges. Port dues are the charges paid for using the facilities of a port.
• Refinery Transfer Price: It price is the price repaid by oil marketing companies to refineries for buying petrol.
• Depot Price: The price paid by retail petrol owners to buy/import petrol from oil marketing companies.
• Inland Freight: It is the price paid by oil marketing companies for transporting petrol from refineries to retail markets.

Impact of GST on Petrol Rates in Tamil Nadu

The GST regime taxes all kinds of goods and services under 4 tax slabs, which are

• 5%,
• 12%,
• 18%, and
• 28%.

The lowest rate fixed by the GST Council to date is 5%, and the highest rate is 28%. 5 petroleum products, including petrol, have been kept outside the regime of GST. Even though petrol is taxed at the highest rate, the state and central governments’ revenue will be significantly affected. Hence, the GST structure does not impact petrol prices in Tamil Nadu.

Diesel Costs vs Petrol Costs in Tamil Nadu

As of 1 March 2021, the mean petrol price was Rs. 91.76, whereas diesel’s mean rate was Rs. 82.24. Petrol rates in the state are expected to rise over the next few months marginally.

If you have any queries regarding the fuel prices in any of the states or union territories of India, please visit Dialabank.