Petrol Price in Maharashtra

The prices of petrol in Maharashtra keeps on changing on a regular basis as per the dynamic fuel pricing system. This system of pricing the fuel ensures transparency in fuel pricing. As per the new system, any change in the prices of petrol will be revised on a regular basis starting from 6 am in the morning across all the petrol stations in line with the exchange rate and trending crude oil prices in the international market.

Under this system, it is easy for the marketing companies to disseminate the global rates into the economy of the country.

How to determine Petrol Prices in Maharashtra?

India depends on oil imports from oil-producing countries and hence the petrol rates in Maharashtra largely depends on the movement of international prices of crude oil. The oil marketing companies import crude oil from abroad on a contract basis. Refiners will convert the crude oil into petrol and this will be supplied to the end users in fuel stations by dealers and so the oil marketing companies, retailers, dealers constitute three important stakeholders of oil and natural gas industry in India.

The selling price of petrol in the state of Maharashtra includes the cost of crude oil incurred by the oil marketing companies, refineries charge the refinery transfer prices, any kind of expenses incurred by the oil marketing companies, state-level value-added taxes, central excise duty and rate of commission charged by dealers.

The crude oil cost also includes freight charges. Oil marketing companies incur cost in the form of operational taxes, transport cost, and entry taxes. The commission charged by dealers of petrol usually differs across the state.

VAT in Maharashtra on Petrol Price

VAT is the abbreviation of Value Added Tax (VAT). The Value Added Tax is a consumption tax levied on a product or service by the government whenever the value is added at each step of the supply chain starting from the production stage to the point of sale. The amount of VAT that a user pays is actually at the cost of the product less any of the costs of materials used in the product which is already taxed.

The residents who reside in the following cities of Mumbai, Navi Mumbai & Thane have to pay 39.54% of state levied VAT on petrol and the in the rest of Maharashtra cities VAT is levied at 38.52% on petrol across all the fuel filling stations.

The Mumbai cities petrol price is highest in the country owing to high state levied value-added tax.