Diesel Price in Assam
Assam is an Indian state. The capital city of Assam is Dispur, a locality of Guwahati. Like other Indian states, Assam uses diesel extensively. The state is said to have a good number of diesel users. Most fuel customers not only in Assam but also in other Indian states have expressed concerns over uninterruptedly increasing diesel rates. The increased cost of unrefined oil or crude oil and heavy taxes have caused a steady rise in diesel rates, which can be controlled. According to official reports released in June 2018, the government shall reduce both diesel and petrol rates by implementing a long-run solution before the 2019 elections.
What is the Diesel Price Trend in Assam?
As we all know, a price trend of any product or service shall rely upon several factors, but the case of diesel price is different. Diesel price trends throughout India are sensitive to both indigenous and overseas elements. Assam is no different. Let’s consider Dispur to understand the price trend of diesel in Assam from January 2018 to May 2018. Diesel rate on the first day of the year was Rs.62.26 a litre. It increased to Rs.66.81 a litre on the last day of the first month, January 2018. The second month of the year began with diesel being priced at Rs.66.90 a litre, but the closing price for the moth fell to Rs.64.82 a litre.
|Also Check: Diesel Price in Guwahati|
March 2018 started with a rate of Rs.64.93 a litre and concluded with a price of Rs.67.21 a litre. The fuel was sold at Rs.67.40 a litre on 1 April 2018 and at Rs.68.83 a litre as on 30 April 2018. Similarly, on 1 May 2018, diesel rate in the city of Dispur stood at Rs.68.83 a litre. The last day of May 2018 recoded a price of Rs.72.31 a litre. Diesel prices were increased by 6.81%, 3.39%, 2.08% and 4.81% respectively in January 2018, March 2018, April 2018 and May 2018.They were cut by 3.21% in February 2018. Between January 2018 and May 2018, at Indian Oil, the highest diesel rate was 72.37 a litre on 29 May 2019.
What is the System Followed to Revise the Diesel Price in Assam?
A few products shall be sold at the similar price for a longer period. With respect to diesel, fuel companies cannot retain the same price. Prior to 16 June 2018, diesel prices in all cities of Assam used to be steady for a period of 15 days. In other words, there used to be two revisions in a month. Since 16 June 2017, Indian fuel companies have been updating diesel rates under dynamic fuel pricing. What does it mean? Dynamic fuel pricing is defined as a fuel pricing system used to revise fuel rates (diesel and petrol rates) taking into account crude oil rates and the INR/USD exchange rate. Under this system, in lieu of revising fuel prices in Assam once a fortnight, fuel companies (Hindustan Petroleum, Indian Oil and Hindustan Petroleum) shall update each day at 06:00 a.m.
What are the Benefits of Dynamic Fuel Pricing?
In five cities in India, dynamic fuel pricing was tested for 40 days. Later on, it was considered as a common fuel pricing system for the whole country. Dynamic fuel pricing provides significant benefits to fuel brands and customers who are considered to be the prime industry stakeholders. Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL) and Indian Oil (IOCL) are allowed to minimise their working capital, which is the net difference between liquid assets and current liabilities. They can also manage cash receipts and cash disbursements effectively. Dynamic fuel pricing makes diesel customers in Assam pay transparently fixed diesel rates.The system instantly transmits even the smallest variation in crude oil rates and the exchange rate to diesel customers in the state.
Quarterly Diesel Price Trend in Assam between July and September 2018
|Opening date price||Rs.70.41 per litre||Rs.70.99 a litre (As of 2 August)||Rs.73.42 a litre|
|Closing date price||Rs.70.87 a litre||Rs.73.42 a litre||Rs.77.91 a litre|
|Highest price||Rs.71.52 a litre||Rs.73.42 a litre||Rs.77.91 a litre|
|Lowest price||Rs.70.41 a litre||Rs.70.99 a litre||Rs.73.42 a litre|
Diesel Price Trend in July in Assam
- In all cities in Assam, the price of diesel, a widely used fuel, was fixed according to the mechanism of dynamic fuel pricing in July, the first month of the quarter.
- Indian Oil, Hindustan Petroleum and Bharat Petroleum, which are the leading players in the Indian fuel segment, shall factor the USD’s conversion rate against the INR and a barrel’s crude oil price when revaluing diesel each day.
- Diesel prices in Dispur, which is the capital city of Assam, had been consistent in the first four days of the month, travelled upwards between 7 July and 15 July, and moved downwards in the last few days of the month.
- The commodity was retailed at a maximum price of Rs.71.52 on 16 July 2018 and a minimum price of Rs.70.41 a litre in the capital city of Assam.
- As of 2 July, the price of the Indian Crude Basket was $75.89 a barrel. It slid to $73.91 per barrel on 31 July 2018. It means there was price drop of almost $2 per barrel of oil.
- The domestic currency kept depreciating versus the base currency. Thus, diesel price in Dispur and other towns in the state produced a 0.65% rise in July.
Diesel Rate Trend in Assam in August
- From 1 August to 31 August, the fuel corporations kept updating the price of the commodity according to the same mechanism.
- On the 1st, 2nd and 3rd of August, the retail selling price of diesel was raised at all the retail fuel stations across the state of Assam.
- Like other states in India, diesel rates in Assam also had been consistent, especially during the second week.
- On the closing day of the month, the fuel was purchased by paying Rs.73.42 per litre. This was the maximum price offered this month.
- As the price of unrefined oil rebounded and the INR weakened versus the prime currency this month, diesel rates in Assam were up by over 3%. This was a big jump from the stance of fuel consumers.
- Like July 2018, the central levy was not changed by the Central Government of India. Even the State Government of Assam did not change the state levy, which is also called the VAT.
- Other aspects involved in the price structure of diesel such as the commission collected by dealers and OMC overheads remained unmodified.
Diesel Price Trend in Assam in September
- In September, fuel pricing was done the way it was done in the first two months of the quarter. It cannot be changed as well.
- On 1 September, a liter’s diesel rate stood at Rs.73.42 in the capital city of Assam. The price was almost the same in Guwahati, Jorhat, Silchar, Nagaon, etc., as of 1 September 2018.
- It has to be noticed that the price went up by Rs.2 a litre between 1 September and 7 September across the state.
- It was because of a drastic drop in the exchange rate of the local currency, which is the INR, against the USD, which is the prime currency.
- In the second, third and fourth weeks of September, fuel rates in Assam were stable and also increased noticeably.
- The growth rate jumped almost by 200% this month caused only by the external factors. The excise duty and the VAT were not revised just like the previous months.
- The countrywide bandh, which was summoned by the opposition political parties on the 10th September, did not impact the price revision.
- Unlike Rajasthan, Karnataka, West Bengal and Andhra Pradesh, the state government of Assam did not decline its tax imposed on diesel. Fuel consumers continued to fight against the Centre.
- The Centre did not decrease the excise duty on diesel and petrol instantly since it wanted more funds.
Quarterly Diesel Price Trend in Assam between April and June 2018
|Opening date price||Rs.67.40 a litre||Rs.68.83 a litre||Rs.72.29 a litre|
|Closing date price||Rs.68.83 a litre||Rs.72.34 a litre||Rs.70.33 a litre|
|Highest price||Rs.68.86 a litre recorded on the 24th||Rs.72.41 a litre recorded on the 29th||Rs.72.29 a litre recorded on the 1st|
|Lowest price||Rs.67.40 a litre recorded on the 1st||Rs.68.83 a litre recorded on the 1st||Rs.70.33 a litre recorded on the 27th|
Diesel Price Trend in Assam in April 2018
- The selling price of diesel includes various cost elements such as sales tax, excise duty, the commission paid to dealers, OMC overheads, crude oil prices, etc.
- Since June 2017, the fuel marketing companies have been revising the prices of both diesel and petrol under a system called dynamic fuel pricing.
- Like other Indian states, Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Indian Oil Corporation Limited reset the petrol rate per litre in the state of Assam under this system.
- The trend is based on the movements of the crude oil price and the USD/INR exchange rate. In April 2018, diesel rates in Assam kept increasing throughout the month in synch with these two aspects.
- During the last week of April 2018, the fuel per litre was sold at a price of Rs.68.83 in Dispur, which is the capital city of Assam.
- If the government revises excise duty, the fuel price is reset accordingly. But, in this month, excise duty was not revised. Even sales tax in the state remained the same.
- It clearly indicates that the domestic forces had no impact on the revision of diesel prices in Assam. Caused by the slightly increased crude oil cost per barrel, the closing date price increased to Rs.68.83 a litre from Rs.67.40 a litre.
Diesel Price Trend in Assam in May 2018
- For this month, the opening date price stood at Rs.68.83 per litre. The same price was extended until the 11th of May 2018 caused by Karnataka state assembly election.
- Compared to the earlier month, the growth rate in crude oil rates was higher this month. Diesel rates, therefore, started moving upwards.
- Under dynamic fuel pricing, the fuel rate per litre stood at Rs.69.05 on the 14th. The fuel rate slowly increased to Rs.70.83 a litre on the 21st.
- For the last week of May 2018, according to Indian Oil Corporation Limited, the average diesel rate per litre was Rs.71.73.
- The highest fuel rate was registered on 29 May 2018. When revised on 30 May 2018, the fuel price in Assam decreased by 63 paise per litre. The closing date price increased by 56 paise per litre compared to the previous day.
- In May 2018, the fuel companies reported an increasing trend. It was caused by the cost of unrefined oil per litre, which increased by $6 per barrel this month.
- Fuel rates in Assam remained unaffected by domestic influencers in this month also.
Diesel Price Trend in Assam in June 2018
- On the 1st, the selling price of diesel per litre in the city of Dispur stood at Rs.72.29. In the following day, the price slid to Rs.72.16. On 03 June 2018, the fuel price remained unchanged at Rs.72.16 per litre.
- By the end of the second, third and fourth weeks of June 2018, diesel rates were Rs.70.82, Rs.70.68 and Rs.70.33 respectively.
- The fuel was sold at a price of Rs.70.82 a litre on the 13th. The same price was extended by the Indian oil marketing companies on the 14th and the 16th.
- Similarly, for the last four days of the month, the fuel was retailed at a price of Rs.70.33 per litre in the state.
- Throughout the quarter, excise duty was charged at Rs.15.33 on diesel per litre and sales tax was levied at 22.71% on diesel per litre.
- Though the Indian currency slightly depreciated against the currency of the USA, the pricing of diesel across the state remained unaffected by the exchange rate.
- According to petroleum Planning and Analysis Cell, in overseas markets, the rate of crude oil per barrel fell.
- Because of this fact, diesel prices in Assam were down by 2.71 in June 2018. The downward trend was also observed in the month of February 2018.
What are the Ways to Obtain the Current Diesel Price in Assam?
The latest diesel price in parts of the state can be gotten using any of the following options:
- Mobile applications such as SmartDrive, Fuel@IOC and My HPCL can be used. SmartDrive is offered by BPCL whereas Fuel@IOC by IOCL. HPCL offers My HPCL.
- Visit the website of your favorite fuel brand and spot a tab called Pump Locator.
- Send an SMS request following the prescribed format.
What is the Procedure Followed to Assess the Diesel Rate in Assam?
Diesel is priced by fuel enterprises. Diesel price is the sum of the overall amount of expenditures incurred by fuel companies, taxes, dealer commission, crude oil costs and pollution cess. If crude oil costs, taxes and OMC expenses are Rs.21 a litre, 30 a litre and Rs.10 a litre respectively, the cost of a litre of diesel is Rs.61. Taxes include excise, which is collected by the Central Government; and VAT, which is charged by the State Government of Assam. Until June 2018, excise duty was Rs.15.33 a litre and VAT was 22.71% on a litre in Assam. The NAD Government, which was formed in the year 2014, has revised the central tax (excise duty) many times.
What are the Factors Impacting Diesel Price in Assam?
Diesel price in Assam is impacted by crude oil expenses, excise duty, the exchange rate, Value-added Tax, production cuts in crude oil-exporting nations, seasonal variations, international politics, demand for crude oil, etc. let’s understand how these elements can impact the pricing of diesel, a widely used fuel across the globe. Current fuel rates in Assam will increase when the USD falls against the local currency. They will also increase if the Central Government increase excise duty. Similarly, fuel prices in Assam will fall if the USD gains against the domestic currency. The same result is expected when oil marketing countries unveil a production cut.
Does GST Impact The Diesel Price in Assam?
GST, which stands for Goods and Services Tax, has no impact on diesel rate in the state. It is because of the exclusion of diesel from the GST rule. As we all know, GST was enforced in the year 2017 to subsume various types of indirect levies. The revenues collected by imposing taxes on diesel and petrol make a big difference to the financial health of India. If the government decides to collect GST on petrol and diesel at 28%, diesel price in Assam and other states will dampen by a huge margin. Eventually, it falls short of revenues.
*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.