Diesel Price in Andhra Pradesh

Andhra Pradesh is one of the most popular South Indian states located in the south-eastern part of the country. It is the eighth largest state and has a population of 49,386,799 people as per 2011 census. The state occupies 10th position in the country, in terms of population. The state has some of the key industrial sectors which contribute majorly towards the economy of the state. The state’s Gross Domestic Product stood at Rs 5,200.3 billion. The surging economy at a faster pace has led to more usage of fuel in the state of Andhra Pradesh.

Diesel Rates in Andhra Pradesh

The fuel prices in the country are revised on a regular basis starting from 6 am in the morning in sync with the global crude oil prices which is currently experience volatility owing to geopolitical tension apart from uncertainty in the oil industry. The petrol prices in Andhra Pradesh is revised under the Dynamic Fuel Pricing Technique. Under this method, all the oil marketing companies in India including Indian Oil Corporation, Hindustan Petroleum, Bharat Petroleum, Shell Oil will change the fuel rates based on the purchase price of crude oil from the global market, tax rates as well as the currency conversion rate.

Benefits of Dynamic Fuel Pricing Technique

The dynamic fuel pricing method which is currently adopted by the oil marketing companies to revise the fuel prices offers many benefits not only to the oil refinery companies but also for the end users – consumers. By following the above-mentioned method to price the petrol across all the fuel stations, the oil marketing companies are able to manage the working capital of the company. It also helps them to keep their respective cash inflows and cash outflows unaffected throughout the year.

The fuel pricing under this method can be done in two ways – manually and automatically. The method of pricing can be done automatically by automated petrol bunks and manually in non-automated petrol pumps.