All the petrol bunks have been monitoring the fuel prices since 16th June 2017 on a regular basis and this method of pricing is called the dynamic fuel price method.
Earlier, the prices were revised every two weeks and now the petrol prices in India are updated daily at 6:00 am. Various factors like the cost of crude oil, demand for fuel, global cues, exchange rate of rupee to US Dollar etc, influence the price of fuel in the country.
The fuel prices in India is directly proportional to the international crude oil prices, the petrol prices in India increases as there is increase in the crude oil prices. The fuel price here is inclusive of VAT (Value Added Tax), excise duty and the commission to the dealers. The retail price of the fuel almost doubles after including the commission and taxes.
The process of Dynamic fuel pricing facilitates the petrol outlets to automatically process and maintain the realistic approach of pricing the fuel. Any adjustments in the crude oil price and the dollar exchange rates are immediately transferred to the consumers of fuel in Vijayawada. The revised fuel rates can be supervised easily from any parts of Vijayawada using the smartphone applications that are built in all the firms who are involved in oil marketing. The websites of these companies can be updated and rebuilt as and when there is a change in the fuel price.
The fuel rates in Vijayawada have been revolving unpredictably, because there is an increasing trend in the prices of crude oil. The Petrol price in the beginning of the week was ₹111.76 per liter in Vijayawada. It is expected to decrease the excise duty by the government, so the fuel rates in the future can be less when compared to the existing price.
The petrol prices in India differ from one state to another because of the tax rates that are imposed by the government on the fuel. The Central government fixes a tax rate of 24% to 26% on fuel and the state government in addition imposes a percentage of 20-25% on the selling price of the petrol. More than half of the cost is pumped to the government in the form of taxes by both the Central and state government.
The decision of the state government to increase the land value is not going well and the real estate agents feel that the demand situations will negatively affect Vijayawada as there is only one national highway that is constructed to connect some areas of Vijayawada, Amaravati and Mangalagiri. The agents believe that the existing value of the land is already higher than the market value and the revised rates can cause a huge difference in the intrinsic value and the book value of the land. They think that the present situation does not serve any purpose for this industry.
The construction materials cost has increased over 50 per cent in the past few years and the land prices are also revised to the higher rates which makes the estates incapable for development and growth.
