Petrol Price in Telangana

Telangana is one of the South Indian states which is situated on the center-south stretch of the Indian Peninsular. The state was newly formed on June 2, 2014, and it was carved out of the north-western part of the previous Andhra Pradesh state. It is the twelfth most populated state in the country and has an estimated population of 35,193,978 residents as per the 2011 census report.

Hyderabad is among the fastest growing cities of India that has immense potential to take over Bangalore GDP soon with the consistent growth recorded. The real estate market of Hyderabad have surged above other major cities like Mumbai, Delhi, Noida and Chennai. The boom in vehicle sales for the year 2023 was recorded the highest in India, which indicates there would be a soaring potential for vehicle segments as well, which would push for stable petrol prices in Hyderabad today. However, the petrol car segment this year lost 3.3% market share, while the sale for these vehicles grew by 3% yearly. The consumption of petrol is highest in India for two-wheeler segment, which have more than 60% consumption of Petrol in India collectively.

How to know the current prices of Petrol in Telangana?

The Indian state-run oil marketing companies which include Bharat Petroleum, Indian Oil and Hindustan Petroleum has introduced many ways to track the petrol prices on a daily basis. The prices of petrol are revised at 6 am in the morning. The customers can know the petrol prices using the mobile applications by the oil marketing firms either by sending an SMS alert or by visiting their respective web portals or by calling the toll-free customer care numbers. Fuel@IOC is the mobile application introduced by Indian Oil, My HPCL is the mobile app of Hindustan Petroleum and SmartDrive is the mobile app of Bharat Petroleum.

Value Added Tax in Telangana on Petrol price

VAT stands for Value Added Tax. The Value Added Tax is a consumption tax levied on a product or service by the state government or the central government whenever the value is added at each step of the supply chain which starts from the production stage and ends at 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.

It is the tax which the government levies on the purchase of certain goods and services. The customer has to bear the VAT expenses. In India state governments levy VAT on petrol price and the same differs from one state to another.

In Telangana, the rate of Value Added Tax on petrol stands at 33.26%.

How are Hyderabad Petrol Rates Today Impacted?

There are multiple reasons for today's petrol prices in Hyderabad to get affected, either by national factors or international changes. As per the economic outlook of any region for any commodity, a hike in demand with a sustaining supply can keep the petrol rates in Hyderabad stable. While on the other hand, if the supply for petrol is lower than the current demand in the market, there would be a push for today's Hyderabad petrol prices to surge accordingly.

Since the dependency of the two wheelers on petrol makes the refined crude oil very critical for the middle-income population. Hence, a strong intervention from government is required to maintain stability for petrol prices in Hyderabad today. Any government intervention can either hike or push for a fall in Hyderabad fuel rates. If recently the government decides to increase its revenue from fuel taxes, a hike in custom charges or levies or windfall taxation can impact the business of refined fuel market. A hike in taxation for companies, leads them to slightly increase the cost of petrol in Hyderabad today along with other parts of the country.

Similarly, when there is an election season approaching ahead, it is a traditional undertaking of central governments of India in the past to use fuel prices as a tool to attract votes for the upcoming election season. If recently the government decides to decrease the expense pressure of the general population by relaxing the fuel prices norms, there is an expectation for decreasing petrol prices in Hyderabad today.

A slight decrease in fuel taxation would have a positive impact on disposable income of middle-income population, which would make them remember the relief while they vote during general elections. Thus, Hyderabad petrol prices today would get affected whenever there is either a positive or negative intervention from the government.

Apart from domestic factors, global scenario for crude oil consumption, demand and supply also have directional influence over petrol prices in India. Although the central government of India through Ministry of Petroleum ensures that international factors doesn't impact the fuel prices in India. When there are major issue like geopolitical tensions, war-like situations and conflicts in crude oil exporting countries, then there are higher chances for local Hyderabad petrol rates today to have a slight push is high, since the government revenue from fuel tax would get below sustainability levels.