Diesel Prices in Agra
Agra is one the most crowded cities in Uttar Pradesh. Since it is a famous tourist destination, it remains crowded throughout the year. This upsurges the number of diesel-run vehicles within the city that has a good number of diesel bunks in order to meet the fuel requirements. The oil companies that supply diesel to Agra include Indian Oil, Bharat Petroleum, Hindustan Petroleum and Shell Oil. The diesel price at each of these oil companies is almost the same.
Trends in Diesel Price in Agra 2017
On the first day of January, the diesel rate in Agra was Rs.58.55 that was further diminished by Rs.1.78 on the first day of April. Between May and June, the diesel price reduced to Rs.56.96 from Rs.58.25. On the opening day of July, the price was Rs.54.73 that further increased to Rs.56.15 on the closing day of August. The average price of diesel in the city after the latest revision of the central excise duty was around Rs.56.89.
Diesel Prices in Agra vs Other Cities
Fuel prices differ from one state to another because of the variations in the state VAT on diesel. As on 4 October 2017, the state VAT on diesel in Maharashtra was 28.41%. In Uttar Pradesh, it was Rs.20.19%. This is the reason why the cost price of diesel in Agra is less. The state levies in Karnataka and West Bengal were 19% and 18.47% respectively.
|Also Check: Diesel Price in Uttar Pradesh|
Revision of Diesel Prices in Agra
All automated and non-automated diesel bunks in Agra have been revising diesel rates on a daily basis since 16 June 2017. This mechanism is called dynamic fuel pricing or the daily revision. Other developed countries such as the United States of America and Australia are also revising fuel rates on a daily basis. Dynamic fuel pricing enables diesel bunk owners to adopt the best stock management principles. Since global crude oil prices and the exchange rate fluctuate frequently, diesel consumers can be aligned to market dynamics under the daily revision system.
Dynamic Fuel Pricing does not impact end consumers, but tracking the current diesel rate in Agra is important from the stance of institutional consumers. The daily updated rates of diesel in the city can be accessed through mobile applications and SMS services offered by all oil marketing companies. Alternatively, consumers can also check the latest diesel price by visiting the respective website of oil marketing companies. The easiest way is to download the mobile applications.
Process of Computing Diesel Prices in Agra
The retail selling price of diesel is computed in the following steps in Agra:
Step 1: Computation of Cost of Crude Oil
Indian oil marketing companies buy crude oil from foreign oil companies. The cost incurred by Indian oil marketing entities to purchase crude oil is called the cost of crude oil, which also includes freight charges. In order to compute the cost of crude oil per litre, the cost price of crude oil per barrel is divided by 159. One barrel of crude oil is equivalent to 159 litres.
Step 2: Computation of Fuel Cost after Refining
This component of the price structure of diesel includes refinery processing, entry taxes, landing costs, operational expenses along with margins, transportation costs, the profit margin of oil marketing companies and the central excise duty charged by the central government.
Step 3: Computation of Fuel Cost before VAT
Fuel cost before Value-added Tax (VAT) is the sum of the price charged to diesel pump dealers and the commission charged by dealers. The commission charged by dealers is based on the number of diesel outlets in the city and the distance covered from refineries to diesel bunks.
Step 4: Computation of Retail Selling Price
We arrive at the retail selling price of diesel by adding all the aforementioned cost elements and the state VAT imposed on diesel by the government of Uttar Pradesh. As on 4 October 2017, the state VAT levied on diesel by the government of Uttar Pradesh was 20.19%.
Factors Affecting Diesel Costs in Agra
The following factors affect the diesel rates in Agra:
Cost of crude oil: Crude oil rates evaluate the spot rate of several barrels of oil, which is clubbed into three categories based on quality. The cost of crude oil is the primary cost element. If it goes up, the retail selling price of diesel will increase; if it falls down, the retail selling price will reduce. The cost price of crude oil is affected by seasonal variations, weather conditions, the economics of oil-producing companies, global political events and the overall demand for crude oil.
Exchange rate: Crude is transacted in the USD since it is an international commodity. Therefore, the exchange rate of the INR, which is the local currency, against the USD, which is the base currency, is taken into account. If the INR gains against the USD, the cost of crude oil in overseas markets will decrease. On the other hand, if the USD gains against the INR, then the cost price of crude oil will increase. Eventually, the retail selling price of diesel is impacted.
Taxes: The tax structure on diesel differs from one state to another. The final price of diesel increases if the state VAT imposed on diesel by the state government and the central excise duty imposed on diesel by the central government increase. This is the reason why diesel prices in Agra slashed over Rs.2 per litre when the central government reduced the central excise duty on 3 October 2017.
Impact of GST on the Current Price of Diesel in Agra
Fuel rate (petrol and diesel rates) in Agra remain unaffected by the GST regime since all types of petroleum products have not been considered under the GST regime. In India, the GST framework was introduced on 1 July 2017. Consequently, merchandisers who are selling all types goods and services will remit taxes to the government under the GST slabs. GST may be levied on diesel in the future.
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*Disclaimer: BankBazaar makes no guarantee or warranty on the accuracy of the data provided on this page, the prevailing prices are susceptible to change and provided on an as-is basis. We accept no liability for any loss arising from the use of the data contained on this website.