Today's Diesel Price in Assam

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?

Some of the main benefits of Dynamic Fuel Pricing are mentioned below:

• Transparency: Daily price revisions ensure that fluctuations in global crude oil prices are immediately passed on to consumers, making the pricing mechanism more transparent.

• Alignment with Global Markets: It aligns domestic fuel prices with international rates, ensuring that the pricing is a true reflection of the market.

• Improved Financial Health of OMCs: Oil marketing companies can better manage their finances as they are not forced to absorb losses when crude oil prices rise.

• Reduced Financial Burder: This model minimizes the need for government subsidies to oil marketing companies, reducing the fiscal burden.

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?

The components that are considered to determine diesel prices in Assam are mentioned below:

• Crude Oil Price: This is the base cost paid by oil marketing companies (OMCs). The crude oil price impact on Assam's fuel rates is significant, as it's the largest component of the price.

• Central Government Excise Duty: A fixed tax applied by the central government. The Central government excise duty on diesel is a major factor in the final price.

• State Taxes on Diesel in Assam: The Assam state government levies a Value Added Tax (VAT).

• Dealer Commission: A commission paid to the fuel station owners for distribution and service.

What are the Factors Impacting Diesel Price in Assam?

The main factors that impact diesel prices in Assam are given below:

• Supply and Demand: The balance between the available supply of diesel and consumer demand can also cause price shifts.

• Rupee-Dollar Exchange Rate: Crude oil is traded in US dollars. A weaker rupee makes oil imports more expensive, increasing the diesel price in Assam.

• International Crude Oil Prices: The single biggest driver. As global prices change, so does the cost to import oil.

• Tax Policies: Any changes to central excise duty or the Assam state budget and fuel tax directly affect the final price.

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.