Diesel Price In Bangalore
|About Diesel Price in Bangalore|
Bengaluru, as it’s known today, is one of the fastest growing cities in the country with a cosmopolitan culture. Petrol and diesel price are revised every day, aligned with market prices, which means the diesel price in Bangalore will increase when the global crude oil prices increase as well as if the rupee depreciates against the U.S. dollar.
Fuel prices used to be revised every two weeks or 15 days. Now, diesel prices in Bangalore are revised daily based on the ‘Dynamic Fuel Pricing’ mechanism. It’s essential to check the diesel price in Bangalore as any decrease in cost could save you some money.
State-owned Oil Marketing Companies (OMCs) such as Bharat Petroleum, Indian Oil and Hindustan Petroleum fix the new diesel price in Bangalore in tandem with any changes in crude oil prices in the international market.
Trend of Diesel Price in Bangalore for October 2019 (rates per litre)
|Highest Rate in October||Rs.69.79|
|Lowest Rate in October||Rs.69.19|
October - Week 1 (1-7):
- In Bangalore, the prices of diesel opened at Rs.69.79 per litre after increasing by 19 paise from the previous day’s closing price. It was the highest recorded price for the month so far in Bangalore.
- The rates dropped considerably over the week in Bangalore as the prices of crude oil cooled down and reversed all the gains that it made in the previous sessions. Compared to the rates charged on the opening day, the prices fell by 60 paise per litre.
- Diesel price in Bangalore closed the opening week in Bangalore at Rs.69.19 per litre, the lowest recorded price for the month till date. The overall performance of diesel in the week was -0.85%.
Trend of Diesel Price in Bangalore for September 2019 (rates per litre)
|Highest Rate in September||Rs.69.60|
|Lowest Rate in September||Rs.67.28|
September - Week 1 (1-7):
- Diesel price in Bangalore opened at Rs.67.42 per litre, unchanged from previous day’s closing price. State-run oil marketing companies decided not to cut prices due to soft demand of the oil.
- After staying stable for the next few days, diesel dropped slightly on 5th September, recording Rs.67.39 per litre. Diesel closed the week at Rs.67.28 per litre. Meanwhile in the international oil market, crude prices went up after US confirmed that talks with China to reach a trade pact would be held in the coming weeks.
- Overall performance of diesel on Bangalore for the first week of September was -0.2%, trending downwards.
September - Week 2 (8-14):
- Diesel price in Bangalore opened at Rs.67.28 per litre in Bangalore on the 8th of September—unchanged from the previous day’s closing price. It’s also the lowest recorded price for the month of September. Meanwhile, in the international oil industry, crude futures dropped after participants reduced positions due to a weak trend in global markets.
- Diesel rate remained unchanged for a day before rising again on the 10th of September. The hike in prices was primarily due to a sharp drop in US inventories.
- Diesel rose sharply in the next few days, closing the week at Rs.67.57 per litre, its highest recorded price for the month till now. The overall performance of diesel was 0.21% and going by the current trend, it’s safe to say that diesel’s going to witness a fair hike in the coming days.
September - Week 3 (15-21):
- Diesel price in Bangalore opened at Rs.67.63 per litre on the 15th of September—6 paise higher than the previous day’s closing price.
- After staying stagnant for a day, diesel prices rose by 16 paise, recording Rs.67.79 per litre on 17 September. Meanwhile, in the international market prices slid after Saudi Arabia’s energy minister stated the kingdom will restore lost oil production by the end of the month.
- Price of diesel in Bangalore closed the week at Rs.68.77 per litre, its highest recorded price in the month of September. The substantial increase in petrol prices was primarily due to last week’s drone attack on Saudi Arabia’s Aramco oil refinery. The overall performance of petrol was 2%, trending upwards.
September - Week 4 (22-30):
- Diesel rate opened at Rs.68.99 per litre in Bangalore on the 22nd of September—22 paise higher than the previous day’s closing price.
- Diesel prices kept soaring, recording, Rs.69.51 per litre on the 27th of September.
- Diesel price in Bangalore closed the week at Rs.69.60 per litre, its highest recorded price in the month of September. The substantial increase in petrol prices was primarily due to the recent drone attack on Saudi Arabia’s Aramco oil refinery. The overall performance of diesel was 3.23%, trending upwards.
Trend of Diesel Price in Bangalore for August 2019 (rates per litre):
|Highest Rate in August||Rs.68.23|
|Lowest Rate in August||.Rs.67.27|
August 2019 – Week 1 (1-7):
- Diesel price in Bangalore opened the week at Rs.68.23 per litre – the highest rate recorded during the week – marked largely due to a slight incline of crude oil prices in the market amid more than expected decline of US inventories and as traders awaited a likely rate cut by the US Federal Reserve.
- Prices fell over the week to touch the lowest rate of the week when a litre of diesel in Bangalore was sold at Rs.68.18 which remained unchanged until the end of the week. The drop in diesel prices comes amid a marginal decline in crude oil prices.
- Overall, diesel price in Bangalore declined by 0.07% amid a slight decline in crude oil prices after the US said it’ll impose additional tariffs on Chinese imports and falling US inventories indicating a weaker demand for crude in the market.
August 2019 – Week 2 (8-14):
- Diesel in Bangalore opened at Rs.68.07 per litre on the second week of August, recording a 11 paise drop from previous day’s closing price.
- Diesel slumped further by 14 paise on the next day, standing at Rs.67.93 per litre. The dip was primarily due to the ongoing US-China trade tension, fuelled further by Trump administration’s decision to impose more tariffs on Chinese imports.
- Diesel price in Bangalore dropped slightly in the next few days before stabilising at Rs.67.60 per litre. The overall performance compared to the opening day was -0.92% (decline). Meanwhile, in the international oil market, crude prices dropped due to possible supply cuts amidst looming global economic crisis.
August 2019 – Week 3 (15-21):
- Diesel rate in Bangalore opened at Rs.67.60 per litre, unchanged from previous day’s closing price.
- Diesel slumped to Rs.67.55 per litre on 17 August. It further dropped to Rs.67.34 per litre on 19 August. The decline was primarily due to weak demand of the oil in the local market.
- Diesel further slumped in the next day and closed the week at Rs.67.27 per litre. The overall performance of diesel in Bangalore was -1.40%, trending downwards. Meanwhile, in the international market, crude gained due to drop in US inventories. However, weak global economic growth could hinder the gains in the coming days.
August 2019 – Week 3 (15-21):
- Diesel price in Bangalore opened at Rs.67.27 per litre on 22nd August, unchanged from previous day’s closing price. It was also the lowest recorded price for the month. After staying stable for the next few days, diesel prices shot up, recording Rs.67.52 per litre on 26th August. In the international oil market, crude gained after slump in US inventories.
- However, diesel slumped, closing the week and the month at Rs.67.42 per litre. In the international market, crude suffered due to concerns about the strength of the US economy.
- The overall performance of diesel in Bangalore was -1.18%, trending downwards.
Also Check Diesel Price in Metro Cities
|Diesel Price in Mumbai||Diesel Price in Chennai||Diesel Price in Delhi|
|Diesel Price Kolkata||Diesel Price n Hyderabad||Diesel Price Pune|
Trend of Diesel Price in Bangalore for July 2019 (rates per litre)
|Highest Rate in July||Rs.68.93 on 7 July|
|Lowest Rate in July||Rs.66.43 on 1 July|
July 2019 – Week 1 (1-7):
- Diesel price in Bangalore on 1 July stood at Rs.66.43 - the lowest price recorded during the month marked by the slight decline in crude oil prices in the international oil market owing to supply cuts led by the OPEC and its allies.
- On 2 July, State-run Oil Marketing Companies (OMCs) hiked diesel prices by 7 paise per litre to be sold at Rs.66.50 a litre, this remained unchanged until 6 July before increasing it by Rs.2.43 per litre primarily due to the hike in excise duty and road and infrastructure cess of Rs.2 per litre.
- By the end of the week, diesel was priced at Rs.68.93 per litre, the highest for the week influenced by the hike in excise duty and cess on road and infrastructure.
July 2019 – Week 2 (8-14):
- Diesel price in Bangalore stood at Rs.68.84 per litre on 8 July, a slight decline in comparison to the previous day’s closing price, which was recorded at Rs.68.93 per litre. The slump was primarily due to the OPEC deciding to extend supply cuts till next year.
- Diesel further slumped to Rs.68.73 per litre on 9 July, a drop of 20 paise from the previous day’s closing price. After staying stable for a day, prices further slumped to Rs.68.47 per litre. The decline could be attributed to the rising US-China trade tension that can have an adverse effect on the global economy. Investors are slowly shifting their focus to safe-haven products due to a possible economic slowdown.
- After hitting Rs.68.47 per litre, diesel in Bengaluru remained unchanged for the next couple of days, closing the week (14 July) at Rs.68.47 per litre. The decline was again mainly due to the looming global economic slump.
July 2019 – Week 3 (15-21):
- Diesel price in Bangalore stood at Rs.68.47 per litre on 15 July, unchanged from the previous day’s closing price. The oil market remained fairly balanced with OPEC and Russia deciding to extend supply cuts. However, on 15 July, crude prices dropped after China reported its slowest economic growth in the last 27 years.
- Diesel in Bangalore remained stable on the next few days after lack of demand following China’s report on its slow economic growth. Weak demand of crude oil in the international oil market was reported following the rise in US stockpiles.
- Diesel closed the week at Rs.68.47 per litre on 21 July amid growing US-China trade tensions. Also, tension between the United States and Iran kept the global oil industry on edge, thereby making rooms for a possible price hike if the situation deteriorates.
July 2019 – Week 4 (22-28):
- Diesel opened at Rs.68.47 per litre when the week began – the highest for the week – even as crude oil prices rose in the international market after the International Energy Agency (IEA) said that it would act to keep the market stable amid rising tensions in the Middle East.
- While prices were kept unchanged until 24 July which was later cut by 6 paise to be sold at Rs.68.41 per litre. This remained unchanged until the end of the week even as crude oil prices declined amid falling US inventories indicating a drop in demand for crude in the market.
- Diesel prices in Bangalore during the week witnessed a drop amid weak demand along with supply cuts led by the OPEC and its allies. Also, according to the IEA, it’s not likely that crude oil prices might incline considerably in a few days due to weak deand and glut in the market.
Trend of Diesel Price in Bangalore for June 2019 (rates per litre):
|Highest Rate in June||Rs.68.37 per litre on 2 June|
|Lowest Rate in June||Rs.65.90 per litre from 20-22 June|
|Overall Performance||Decline to rise|
June 2019 – Week 1 (2-8):
- In the first week of June, diesel opened at Rs.68.37 per litre in Bangalore on 2 June. The price fell by 42 paise on 3 June and stood at Rs.67.95 per litre.
- The diesel prices in the state continued to dip over the week and reached Rs.67.75 per litre on 4 June and 5 June.
- It declined further by 33 paise and stood at Rs.67.39 per litre on 6 June. The reason was the fall in price was attributed to the slump in crude oil prices in the global market.
- By the end of the week, the diesel prices fell further and hit Rs.67.06 per litre. Brent crude prices recorded a drop of 0.4% and were trading at $61.01 per barrel. This was one of the primary reasons of the price drop.
June 2019 – Week 2 (9-15):
- At the beginning of the week on 9 June, the price of diesel remained unchanged from the previous day and stood at Rs.67.06 per litre.
- Diesel prices fell further by 53 paise and hit Rs.66.53 per litre on 10 June. It remained unchanged on 11 June and 12 June.
- Prices continued to fall consistently throughout the week and stood at Rs.66.47 on 13 June.
- On June 15, the price of one litre diesel in Bangalore was Rs.66.06.
- The fall in the price can be attributed to concerns of the trade war between the US and China and production cuts led by the OPEC and its allies.
June 2019 – Week 3 (16-23):
- Diesel prices fell at the beginning of the week and stood at Rs.65.96 on 16 June. It remained unchanged from 17 June to 19 June.
- The prices further dropped and recorded its lowest price on 20 June and stood at Rs.65.90. The fall in the diesel price was on the back of the ongoing US-Iran conflict coupled with a speculated slash in US interest rates.
- The diesel price continued to stay at Rs.65.90 by the end of the week on 23 June.
June 2019 – Week 4 (24-30):
- In the last week of June, there was a marginal increase in the price of diesel. It stood at Rs.66.03 per litre on 24 June.
- Diesel prices in Bangalore increase gradually in the middle of the week and hit Rs.66.14 on June 28 and June 29.
- Overall there was a decline of -2.98% in diesel prices for the month of June amidst the drop in global crude prices.
What is Dynamic Fuel Pricing?
Diesel fuel price fluctuations are attributed to the daily revision of fuel prices in the country under the ‘Dynamic Fuel Pricing’ method. Oil companies consider the fortnight average of crude oil price along with the rupee-dollar exchange rate to fix the retail selling price of diesel or petrol. The new diesel price in Bangalore is effective from 6:00 am IST.
By keeping fuel prices in India proportional to the global crude oil price, oil companies can offset any losses as well as pass on any benefits to the consumer. Before this mechanism, oil companies revised fuel prices every fortnight, this was before 16 June 2017, when the daily revision was introduced in the country.
Under the previous method, oil companies used to revise fuel prices every fortnight or 15 days. This led to a sudden incline or decline in fuel prices, sometimes leading to a sudden leap in prices. To avoid burdening the consumer, the daily revision of fuel prices was introduced, with small changes to diesel rates every day.
Diesel to Become Dearer in the Country (Date:5th July'19)
The rates of diesel are going to become dearer in the country. Union Finance Minister Nirmala Sitharaman in today’s Union budget proposed to increase special additional excise duty (SAEL) and infrastructure cess on diesel by Re.1 per litre. Sitharaman in her speech stated that with crude prices softening from the highs, the government wants to review excise duty and cess. Currently, the government charges SAED of Rs.1 and road and infrastructure cess of Rs.8 on diesel. She, however, did not share the overall tax gain for the government.
It is noteworthy to mention that the government had cut the basic excise duty by Rs.2 per litre in last year’s budget. However, it did not result in the prices coming down as the cut was offset by an extra levy of Rs.8 per litre under Levy of Road and Infrastructure Cess. As of Friday, diesel prices remain unchanged in the country for the third consecutive day. In the national capital, every litre cost Rs.64.33.
|Also Check: Diesel Price in Karnataka|
Factors Affecting Diesel Prices in Bangalore
Diesel rates in Bangalore are made up of several important components apart from the oil price and the rupee-dollar exchange value. After the refining process, components such as entry tax, freight charges, refinery charges, oil firm’s margin and logistics are levied before arriving at the basic cost of fuel. Petrol pump owner’s commission, excise duty levied by the Centre and the respective state’s local tax or VAT are later added to the basic cost of fuel.
While most of these components’ charged are not dynamic, the global crude oil price and the rupee-dollar exchange rate are dynamic. Hence, these two factors are the primary reason why diesel prices fluctuate in India. Let’s review the factors which affect crude oil prices in the international market.
- Supply and Demand of Crude Oil: he Organisation of Petroleum Exporting Countries (OPEC) along with their strong allies have been the biggest suppliers of crude oil in the global market, thereby influencing oil prices to a large extent. Policies by the OPEC are mainly driven by geopolitical developments. So, any pressure on any one of the OPEC members often leads to a reduction of oil supply and oil prices incline accordingly. Likewise, if there’s an increased supply of oil, prices often drop.
- Geopolitical Tensions: Political events and crisis lead to a rise in crude oil prices. Conflicts in any of the oil-producing region could potentially lock up supplies, thereby increasing the oil rates. Any crisis such as natural disasters or any political upheaval affects the oil price as well.
- Future Supply of Crude Oil: The biggest oil-producing and oil-consuming countries reserve large quantities of crude oil to keep their economy healthy in the event of an oil price increase. These countries usually stock up when the prices are lower, and the supply is spread through the economy to keep prices steady.
Diesel Price Calculation in Bangalore
Here’s how the diesel price is calculated before it’s retailed in the country by State-run oil firms. Below is the price breakup of diesel price in Bangalore recorded on 3 January 2019.
|Components||Diesel Price Calculation (per litre)|
|International Crude Oil Price with Ocean Freight||$56.5 or Rs.3,967 per barrel|
|One Barrel of Crude Oil||159 litres|
|Crude Oil – Cost||Rs.24.95|
|OMCs Cost for Refinery and Logistics||Rs.11.74|
|Basic Cost of Fuel after Refining Cost||Rs.36.69|
|Excise Duty + Road Cess||Rs.13.83|
|Price Charged to Petrol Pump Owners before VAT||Rs.50.89|
|Commission to Dealers||Rs.2.53|
|Cost before VAT||Rs.53.42|
|Final Retail Price of Diesel as on 3 January 2019||Rs.64.64|
Diesel Price in Bangalore Compared to other Metro Cities
Diesel prices are different from city to city and between fuel station to fuel station. This is because of taxes levied by the respective state. In Karnataka, the state government levies 21% as VAT on the sale of diesel in the state, while it charges 32% on petrol. Other metro cities such as Mumbai, diesel attracts 24%, in Kolkata its 17% or Rs.7.70 per litre, and in Chennai, it’s 25%.
Diesel Price Vs. Petrol Price in Bangalore
The basic cost of both petrol and diesel are the same, however, other charges lower the diesel price. The excise duty levied by the Centre and the VAT charged by the respective State is much lower than levied on petrol, making the diesel price in Bangalore lower than petrol prices.
Is GST Applicable in Diesel?
India moved to a new tax regime known as the Goods and Service Tax (GST) which became effective from midnight of 1 July 2017. Under this tax regime, all goods and service were brought under one tax structure. However, five petroleum products such as petrol, diesel, crude oil, natural gas and aviation turbine fuel (ATF) were exempted from attracting the GST.
Currently, both petrol and diesel continue to attract the excise duty levied by the Centre and the VAT charged by the respective State. The tax incidence of excise duty and VAT is around 45-50% on petrol and 35-40% on diesel. The highest tax rate under GST is 28%, which means, both the Centre and states will lose huge revenue. While the Centre could lose up to Rs.20,000 crore, the states want to keep their revenue pool to meet any contingency.
Additionally, GST is an ad valorem levy, which is charged as a percentage on the ex-factory rate. This would lead to a massive impact on retail rates whenever refinery gate prices are raised due to an incline in crude oil prices in the international market and the reverse could also be true.
Also Check Diesel Price in NearBy Cities of Bangalore
*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.