Diesel Price in Amravati
Did you check the latest diesel rate in Amravati? If yes, do you think the fuel is overpriced? Absolutely, diesel is an expensive fuel now especially in Maharashtra with a price offer of Rs.71.92 a litre. The price is expected to grow as well. Over the last 4 months, diesel price in Amravati, a notable town in the state of Maharashtra, hiked by Rs.3-4 a litre. Other cities of the state have also exhibited the similar outcome.
Hindustan Petroleum, Indian Oil and Bharat Petroleum are the three fuel companies operating across India. These fuel entities have a huge number of retail supply centers or fuel stations across the city of Amravati. Through these retail fuel centers, the fuel entities will distribute diesel to buyers. A certain amount of commission is paid to fuel stations.
|Also Know: Petrol Price In Amravati|
Dynamic Fuel Pricing in Amravati
Dynamic fuel pricing is a platform considered to define the price offer of diesel per litre. According to this platform, regularly, HPCL, BPCL and IOCL will unveil the redefined fuel rate in association with the costs of unrefined oil and the exchange rate. India introduced dynamic fuel pricing after conducting a one-month pilot in a few cities.
Salient Features of Dynamic Fuel Pricing
- It is a daily fuel pricing mechanism.
- Fuel companies have to announce the revised rate in the morning.
- Diesel rates in Amravati cannot be steady. They may go up or fall down.
- If there is a cut in unrefined oil expenses, it is quickly transmitted to fuel customers.
- Neither political parties nor other forces impact the price revision of diesel.
Smart ways to get Today’s Diesel Price in Amravati
Use SmartDrive, Fuel@IOC and My HPCL to get today’s diesel price in Amravati. These are the mobile applications offered by Bharat Petroleum, Indian Oil and Hindustan Petroleum. Smartphone users can make use of this facility. Fuel@IOC can be used by Android and Apple users. Apple and Android are the most commonly used operating systems. The fuel consumers who do not use either an Android operating system or an Apple operating system can visit the website of Indian Oil Company.
Using SmartDrive, customers can trace the transactions made at fuel supply stations. This mobile application has been designed in a way that helps fuel users to get vehicle-related details. It also provides details related to loyalty dealings. My HPCL can be used by Android, Window and IOS users. If you do not want to use mobile applications, you also have an option to send an SMS request to collect the current diesel price in Amravati.
Computation of fuel prices in Amravati
- Crude oil cost per litre = Rs.27 a litre
- OMC expenses = Rs.4.75 a litre
- Freight cost and OMC margin = 3.31 a litre
- Excise duty on diesel per litre = Rs.15.33 a litre
- Commission to pump dealers = Rs.2.51 a litre
- Value-added Tax = Rs.11 per litre (Approximately)
Selling price of diesel = crude oil costs + OMC expenses + OMC margin and freight + excise duty + commission to pump dealer + VAT = Rs.71 a litre
Indigenous Factors Impacting Fuel Prices in Amravati
The factors that impact fuel prices are of two kinds: 1) Indigenous factors and 2) overseas factors. Indigenous forces include VAT and excise duty whereas overseas factors include demand, supply, weather, production cuts, exchange rate etc. Value-added Tax (VAT) is a state-level levy charged by the respective state government. It will change within the Indian states.
So, different states have different diesel prices. For instance, diesel price in Amravati is higher compared to that of in Delhi. VAT on diesel in Delhi was 17.28%. In Amravati, VAT was 21.97% according to a recent published by Petroleum Planning and Analysis Cell.
Since the State Government of Maharashtra reduced VAT by Rs.2 per litre in 2017, fuel rates were also reduced. Excise duty was cut by the Government of India in order to depreciate diesel rates in Amravati for buyers. OMCs have to make necessary changes after the revision of taxes. For instance, they have to accelerate the price when the taxes are hiked. This is how taxes impact the revision of diesel rate in the indigenous market.
Overseas Factors Impacting Fuel Rates in Amravati
The exchange rate directly impacts since crude oil is internationally bought. Let’s understand how. This exchange ratio depicts the value of the INR against the global currency. If the USD goes up, the price will fall down. If the USD falls down, the price will increase proportionately. Here is an example for you. Diesel prices have boosted reasonably in the months of January 2018 and March 2018 respectively. They were down in the month of February 2018. These price fluctuations were caused by the changes in the USD/INR conversion rate.
Sometimes, production cuts are announced by oil-selling nations. When a production cut is declared, the extraction of crude oil gets affected. As a result, crude oil rates will be increased by oil-marketing countries. Ultimately, fuel rates will be affected. The higher the demand for crude oil, the higher will be the crude oil cost. The lower the demand for unrefined oil, the lower will be the crude oil rate. The cost of crude oil is adjusted according to the demand pattern for this particular commodity.
Impact of GST on Diesel Price in Amravati
What is GST? Goods and Services Tax (GST) is a newly introduced tax framework. Customers are required to pay GST on purchasing something. Interestingly, diesel does not come under the purview of Goods and Services Tax. So, it has no effect on diesel rates till date. Diesel and petrol are two important commodities that bring a good amount of revenues to the Central Government. GST, when imposed on diesel, will decrease the revenue. Therefore, the GST Committee has kept diesel outside GST.
Also Check Diesel Price in NearBy Cities of Amravati
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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.