The capital city of the state of Karnataka is Bangalore. It is the third most populated city and fifth-most populous metropolitan area in India, with more than 10 million people residing in the city. As of 16 June 2017, with the implementation of dynamic fuel pricing, which is also considered as the regular variation of fuel prices, petrol prices in Bangalore and other cities in India are being revised every day. The decision to update petrol prices on a regular basis, which had been changed every 15 days before, was made to move on to the end product even a minute adjustment in the international price of crude oil. Under the current revision system, the fuel prices for all petrol pumps in Bangalore will be revised by 6 a.m every day. Consumers can get the rates from the respective oil firms’ smartphone applications, and by accessing Informalnewz.com or visiting the respective portals of the oil marketing companies.
Why Petrol Price Change In Bangalore On A Daily Basis?
Petrol pricing consists of several components, including the international price of crude oil, freight costs, refining charges, gross margins of the oil marketing company, distributor commission, state and federal taxes, and other charges such as pollution cessation and service charges for the pump. Though most of the factors appear the same from city to city, the value added tax (VAT) imposed by the state government is one significant factor that has a big effect on the price of petrol in Bangalore or any other Indian city. In the case of Bengaluru, the VAT imposed by the government of Karnataka on petrochemicals is the difference in price. Petrol prices range from one oil company to another as well. The price charged by the IOC varies from that provided by the fuel pumps of BP and HP. The dealer’s commission and fuel pump maintenance costs, which differ across fuel pumps across the city are other variables that affect marginal adjustments in the petrol price.