Diesel Price in Ahmedabad
What would you like to know about diesel as a diesel consumer from Ahmedabad, the capital city of Gujarat? In fact, there have been many interesting topics related to diesel, which is the most widely used and preferred fuel across the globe. The following sections give you a few useful insights into the latest developments with respect to diesel:
Introduction of Dynamic Fuel Pricing
Do you know what is the methodology used to price diesel? Many diesel consumers may not have noticed that today we have a fresh mechanism called ‘dynamic fuel pricing’ to price diesel across the nation. It was introduced in June 2017. Since then, all state-owned diesel bunks have been reviewing diesel prices in Ahmedabad on a daily basis.
|Also Check: Diesel Price in Delhi|
The move has been initiated by the government of India in order to bring transparency in fuel pricing and encourage the best inventory management principles. In the previous fuel pricing system, which is the fortnight-based revision, the price revision used to happen on the first and sixtieth of every month. The fortnight-based revision was in practice for the last 15 years.
Irrespective of the methodology used to determine the rate of diesel, the elements that form the diesel price are the same. They are global crude oil rates and the exchange rate of the INR to the USD. The new fuel pricing mechanism instantly transfers any fluctuations in these two elements to end fuel users. This is the reason why the diesel price in Ahmedabad is marginally varying nowadays.
Obtaining the latest diesel rates has been made easier for consumers in the city through an SMS service, an online facility, and a customer care service. All premier oil brands, which include Shell Oil, Hindustan Petroleum, Bharat Petroleum and Indian oil, offer these facilities. If you are a wholesale consumer of diesel from the capital city of Gujarat, be sure to get the latest diesel rate.
|Also Know: Petrol Price In Ahmedabad|
Trend in Diesel Prices in Ahmedabad
The lowest diesel rate in Ahmedabad is at Hindustan Petroleum whereas the highest rate is at Shell Oil according to market reports. Right from the first day of dynamic fuel pricing until the recent cut in the excise duty, diesel rates in the city were growing slightly. After 4 October 2017, they were down by Rs.2. Experts predict them to be steady for the next one or two months.
Diesel Prices in Ahmedabad and other Prime Localities
In which city do you think diesel rates are cheaper? Undoubtedly, it is New Delhi followed by Bangalore, Chandigarh, and Gurgaon. Diesel is priced more in Ahmedabad compared to Chennai, New Delhi, Kolkata, Faridabad, and Bangalore. Amid all Indian cities, Mumbai has the highest price fixed for diesel. Diesel rates change within Indian cities because of the differences in the state VAT component.
Quarterly Diesel Price Trend in Ahmedabad between July and September 2018
|Opening date price||Rs.72.44 per litre||Rs.72.91 per litre (As of 2 August)||Rs.75.55 per litre|
|Closing date price||Rs.72.78 per litre||Rs.75.38 per litre||Rs.80.37 per litre|
|Highest price||Rs.73.44 per litre||Rs.75.38 per litre||Rs.80.37 per litre|
|Lowest price||Rs.72.44 per litre||Rs.72.91 per litre||Rs.75.55 per litre|
Diesel Price Trend in July in Ahmedabad
- As India buys petroleum from the overseas market, diesel and petrol have to be priced considering the performance of the rupee (INR) against the dollar (USD) and the price of unrefined oil.
- These two global aspects equally impact the pricing decision of publicly traded fuel enterprises that include Indian Oil (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL).
- Just like other cities, in Ahmedabad also, the oil enterprises sold diesel at the same price for the first four days of July 2018. After the first week, the enterprises commenced snowballing the rate of diesel.
- As a result of the highly lithesome exchange rate and the oil rate, diesel rates in Ahmedabad remained unchanged at the starting of the month, increased in the middle of the month and also decreased in the third week of the month.
- Since the selling price of diesel also includes the two types of taxes (sales tax and excise duty) and OMC overheads, the oil corporations ought to consider the changes in such domestic aspects as well.
- In July, no variations were detected in the domestic fuel rate influencers. So, it can inferred that a fall in oil rates and the INR caused a 0.46% growth rate in diesel prices in Ahmedabad.
Diesel Rate Trend in August in Ahmedabad
- Unlike the first week of the previous month, fuel rates kept soaring in the first week of August in sync with the global influencers.
- Diesel was valued at Rs.73.09 per litre on the 2nd, Rs.73.19 per litre on the 3rd, Rs.73.38 per litre on the 4th, Rs.73.51 per litre on the 5th and Rs.73.64 per litre on the 6th.
- On 12 August, the price surpassed the Rs.74 mark. The price plunged by 6 paise per litre the next day. It remained constant at Rs.73.94 a litre on the 14th and 15th of August 2018.
- Fuel price in Ahmedabad was not changed on the 20th and 21st of August. Likewise, on the 24th and 25th of August, fuel rate remained steady at Rs.74.44 per litre.
- The price crossed the mark of Rs.75 per litre on the 29th. Compared to the previous day, the closing date price increased by 30 paise per litre.
- The greenback gained immensely this month. So, the growth rate was over 3% this month not only in the capital city of Gujarat but also in other cities.
- While the lowest rate was registered on the 1st at Rs.72.91 per litre, the highest price was Rs.75.38 per litre on the 31st.
Diesel Price Trend in Ahmedabad in September
- The INR closed at 71.02 on the 2nd, 71.23 on the 3rd and 71.60 on the 4th.
- Owing to a big fall in the exchange rate of the INR, under the daily revision mechanism, fuel prices in Ahmedabad increased by 59 paise per litre, 52 paise per litre and 21 paise per litre on the 2nd, 3rd and 4th of September 2018.
- Likewise, all the three state-owned oil entities kept reviewing the value of diesel per litre under the system of dynamic fuel pricing until the end of September 2018 in Ahmedabad.
- Between 1 September and 7 September, diesel rates were increased by 1.90%. The oil companies also increased fuel rates by 2.14% between 7 September and 14 September.
- In the last two weeks, the price of petroleum per barrel increased by 1.23% and the exchange rate of the rupee dropped by 0.91%.
- Consequently, the month closed with a rise of 6.37%.
- The price of diesel a litre in Ahmedabad increased from Rs.72.44 to Rs.80.37 (10.94% growth rate) this quarter.
- The BJP-led government did not react to the national level bandh called for in the second week of September.
- Throughput the quarter, VAT was charged at 25.53% and excise duty at Rs.15.33 on diesel per litre.
Quarterly Diesel Price Trend in Ahmedabad between April and June 2018
|Diesel price||Rs.69.32 per litre as on 02 April 2018||Rs.70.93 per litre as on 14 May 2018||Rs.74.23 per litre as on 01 June 2018|
|Diesel price||Rs.70.67 per litre as on 24 April 2018||Rs.74.28 per litre as on 31 May 2018||Rs.72.27 per litre as on 26 June 2018|
|Highest price||Rs.70.67 per litre as on 24 April 2018||Rs.74.35 per litre as on 29 May 2018||Rs.74.23 per litre as on 01 June 2018|
|Lowest price||Rs.69.32 per litre as on 02 April 2018||Rs.70.93 per litre as on 14 May 2018||Rs.72.27 per litre as on 26 June 2018|
Diesel Price Trend in Ahmedabad in April 2018
- Diesel price is set by oil marketing companies such as Indian Oil, Hindustan Petroleum and Bharat Petroleum. The revision of diesel price is currently done on the basis of dynamic fuel pricing.
- Dynamic fuel pricing is the name of the recently introduced system for revising the prices of diesel and petrol. The same system was used by OMCs to reset the price of diesel per litre in Ahmedabad, the capital city of Gujarat.
- As the exchange rate and the crude oil price form the basis for revising fuel prices, diesel prices in the city of Ahmedabad have been revised regularly in the month of April 2018.
- The retail selling price of diesel also includes taxes such as excise duty and Value-added Tax. Fuel companies will take into account the changes in the taxes, which are imposed on diesel.
- But, in this month, both excise duty and value-added tax remained changed. The crude oil price and the exchange rate have impacted the price revision of diesel in the city of Ahemedad.
- For the month, the highest fuel rate was registered on 24 April 2018 whereas the lowest fuel price was registered on 01 April 2018.
Diesel Price Trend in Ahmedabad in May 2018
- Diesel price trend in Ahmedabad in May 2018 was interesting to notice. Fuel prices were steady between 01 May 2018 and 11 May 2018 because of the assembly election, which was held in Karnataka on 12 May 2018.
- In May 2018 also, fuel companies reviewed the price of diesel per litre based on the changes in the exchange rate and the rate of crude oil per barrel. So, diesel prices in the city of Ahmedabad were volatile throughout the month.
- The fuel price per litre was Rs.70.93 on 14 May 2018. It further increased to Rs.70.17 on 15 May 2018, Rs.71.40 on 16 May 2018, Rs.71.63 on 17 May 2018, Rs.70.93 on 18 May 2018, and Rs.72.74 on 21 May 2018.
- By the end of the fourth week of the month, the fuel rate stood at Rs.74.20 per litre in the capital city of Gujarat. According to Indian Oil Corporation Limited (IOCL), the highest fuel price for the month stood at Rs.74.35.
- Since the fuel rate decreased on 29 May 2018 and 30 May 2018, the lowest fuel rate for the month was booked on 31 May 2018 at Rs.74.28.
- Like the previous month, diesel prices in Ahmedabad were reasonably up this month also because of the increased crude oil price but not because of domestic factors such as excise duty and Value-added Tax.
Diesel Price Trend in Ahmedabad in June 2018
- Unlike the first two months, the crude oil market was very slow. Crude oil prices kept decreasing in transactional markets. Therefore, diesel prices not only in the city of Ahmedabad but also in other parts of India moved downwards this month.
- The opening date price was recorded at Rs.74.23. The fuel price per litre slid to Rs.73.98 on 04 June 2018, Rs.73.89 on 05 June 2018, and Rs.73.80 on 06 June 2018. The first week closed at a price of Rs.73.72 in the city.
- Similarly, diesel rates in Ahmedabad continued to fall during the second, third and fourth weeks of June 2018 in tandem with the overseas crude oil price and the exchange rate of the domestic currency against the greenback.
- Because of the downward trend, the highest fuel price was registered at the beginning of the month at Rs.74.23, while the lowest fuel rate was booked at the end of the month at Rs.72.27.
- Throughout the quarter, domestic influencers such as OMC expenses, the profit margin of OMCs, excise duty, sales tax and the commission charged by local fuel dealers remained changed.
How is the Retail Selling Price of Diesel in Ahmedabad Calculated?
The retail selling price (RSP) of diesel is the final price remitted by end consumers in Ahmedabad. The RSP is the sum of cost and freight price (C&F price), import charges, customs duty, the refinery transfer price (RTP), the excise duty imposed by the central and the VAT levied by the state, the commission charged by dealers, and pollution cess.
C&F price is the sum of free on board price (FOB) and ocean freight. The purchasing price of diesel is called FOB price. Freight is the transportation cost incurred by oil marketing companies. The excise duty is the tax imposed by the central government on diesel. It remains the same across the country. Diesel is presently taxed at 28.96% by the government of Gujarat.
Components of the Price Structure of Diesel in Ahmedabad
In technical terms, various components of the price structure of diesel include the cost of crude oil, the cost of fuel after refining, the price quoted to diesel retailers before VAT, the cost of fuel before VAT, and the final price. The cost of crude oil (including freight) is approximately Rs.20.19 a litre.
Fuel component, customs duty, the central excise duty, sales VAT and the dealer’s commission account for 66%, 7%,13%,12% and 2% of the retail selling price of diesel in the city. About 95% of its actual consumption is in industries while the remaining 5% is utilised for transportation. The prices of all manufactured goods will go up if the cost of diesel increases, which leads to detrimental levels of inflation.
The process of calculating the final cost of diesel remains the same across all Indian cities, including Ahmedabad. Diesel is taxed differently by every state. The commission charged by dealers may vary within Indian states and cities. As a result, the cost of diesel varies from one city to another.
Influencers of Diesel Costs in Ahmedabad
What was the cost of a litre of diesel in Ahmedabad before 4 October 2017? It was Rs.65.49. When the central government reduced the excise duty by Rs.2 per litre, the cost of diesel has fallen to Rs.63.11 as on 9 October 2017. Thus, the central government’s decision to decrease or increase the excise duty direct affects the final price in the city. The same goes with the tax levied on diesel by the government of Gujarat.
Another influencer is the cost of crude oil, which is traded globally. It is affected by seasonal fluctuations, overseas supplies and demand, the demand for crude oil from emerging economies of the world, weather conditions in oil-producing nations, the variations in the exchange rate of the Indian currency (INR) to the currency of the United State of America (USD).
What is the impact of GST on Diesel Prices in Ahmedabad?
The Goods and Services Tax (GST) is the largest tax reform in the country. GST is implied on almost all goods and services except petroleum products like crude oil, motor spirit, natural gas, high-speed diesel, and aviation turbine fuel. Petroleum products have been kept outside the scope of GST so as to maintain the revenues accumulated by states from these products. Therefore, diesel prices in Ahmedabad remain affected by GST till date. It is up to the GST Council to decide whether or not to impose GST on diesel.
Diesel Rates vs. Petrol Rate in Ahmedabad
Currently, the average price of diesel per litre is hovering around Rs.63 in the city. Petrol is sold at an average price of Rs.69.90. Both fuel prices are anticipated to be steady over the next month. The net difference in the prices of two fuels in Ahmedabad is considered moderate compared other prime Indian towns including New Delhi, Bangalore, Chennai, Mumbai, and Kolkata.
Also Check Diesel Price in NearBy Cities of Ahmedabad
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