Why Petrol Prices in Bihar Aren’t Dropping Despite Global Trends

Petrol prices in Bihar remain steady due to high state taxes, despite fluctuations in global crude oil rates.

Why Petrol Prices in Bihar Aren’t Dropping Despite Global Trends

Patna : Petrol prices across Bihar have remained relatively stable, with minor fluctuations observed in various districts. As of today, the average petrol price in the state stands at Rs. 106.94 per litre.

In Patna, the capital city, petrol is retailing at Rs. 105.47 per litre. This marks a slight decrease from the previous day’s price of Rs. 106.11 per litre. Over the past ten days, prices in Patna have fluctuated between Rs. 105.23 and Rs. 106.11 per litre, reflecting the dynamic nature of fuel pricing influenced by global crude oil trends and currency exchange rates.

So, why aren’t prices falling significantly despite softening crude oil rates globally? A major reason lies in the high taxation structure. As per the Petroleum Planning and Analysis Cell (PPAC), Bihar levies a VAT of 23.58% or Rs. 16.65 per litre (whichever is higher) on petrol, along with an additional 30% surcharge on that VAT amount. This fixed tax formula means even if the base price of petrol drops, the final retail price does not fall proportionately.

Other districts in Bihar have reported similar trends. For instance, in Purnia, petrol is priced at Rs. 106.56 per litre, while in Rohtas, it stands at Rs. 106.12 per litre. These variations are primarily due to differences in local taxes and transportation costs.

Fuel prices in India are revised daily based on international oil prices and foreign exchange rates. The consistent monitoring and adjustment aim to ensure that domestic fuel prices remain aligned with global market dynamics.

Consumers are advised to stay informed about daily fuel price changes, especially those planning long-distance travel or managing transportation-dependent businesses. Regular updates can be accessed through official fuel price tracking platforms and mobile applications.