Petrol Price in Rajasthan

Rajasthan is the largest state in the country in terms of area. It is located in the northwestern part of India. The state was formed on March 30, 1947, after the merger of Rajputana into the Dominion of India. The state also has a crude oil extraction unit in Barmer region which is capable of extracting 175000 barrel of crude oil on a daily basis. The state is developing at a fast pace over the last few years and to help with the further growth and development, fuel is essential. The state had recorded a total number of motor vehicles at 3.83 million during 2004 and by 2016 it has surged up to 13.63 million.

What are the main factors that affect petrol prices in Rajasthan?

The following are the main factors which affect petrol prices in Rajasthan:

• Demand and Supply of Fuel – The vehicles in India mostly depends on petrol. The regular and continuous supply of fuel in the country keeps the demand and supply in equilibrium. If the transportation for the supply of petrol from one place to another place cannot support the flow of supplies, then the prices of petrol shoot up.

• Cost of Crude oil globally – The cost of the crude oil in the global market is another important factor which determines the petrol price in the country as well as its different states. The low output of crude, high demand in the international market added with political tension will majorly impact the crude oil prices in the global market.

• Tax Rates – The tax rates are usually implemented on the fuel in India by the respective state government. Whenever the government of the country hikes the tax rates on fuel, the state-run oil marketing companies also increase the prices of petrol mainly to recover the loss and the maintain the marginal profits.

• Rupee – Dollar Exchange Rate – The value of rupee against the dollar is also an important factor which determines the prices of the crude oil in Rajasthan. Crude oil is priced in dollars and a strong dollar will make it expensive for the holders of other countries currencies. Apart from this the weak rupee in the global market will also make the dollar-priced crude oil costlier.