Diesel Price In Bhopal
Ever since the mechanism of “dynamic fuel pricing” has been implemented, the diesel price in Bhopal has been fluctuating frequently. However, the best thing about diesel that it is far cheaper than petrol and other gasoline. No wonder, the sales of diesel cars and other heavy-duty vehicles have increased in the recent years.
For a better insight, here is an article that explains clearly about the concept of dynamic pricing and other essential factors that affect the diesel rates in Bhopal.
Bhopal is not only the capital city but also the second biggest metropolis in Madhya Pradesh. Earlier, due to the Bhopal Gas Tragedy, the economic development was stalled. But the industrial growth has started to thrive in the recent years.
|Also Know: Diesel Price in Madhya Pradesh|
Overall, the economy is entirely based on its industries and is in fact, a vital industrial region of the state. Chemicals, cotton, flour milling, and electrical goods are the primary sources of their economy. With about 80% of urban population, it is highly urbanized and now a “metro” city and that’s why many IT businesses have set up their offices there.
Factors That Affect Diesel Price In Bhopal
On an average, diesel is much cheaper when compared to other gasoline but the differences vary considerably in almost all the countries over time. Just like petrol, even diesel is obtained from crude oil. Therefore, the cost of the crude oil is an important factor in influencing the diesel rates in a country.
Nevertheless, diesel price also reflects taxes, refining, marketing, and distribution costs. In addition, the retail prices of diesel are also affected by the market demand. The important factors that affect a region’s diesel price are listed below:
1. Refining Cost
During the refining process, crude oil is divided into various components, which are then converted through additional treatments into diesel fuel, gasoline, and petroleum products. Talking but diesel in specific, it is less volatile and heavier than gasoline. This is exactly why diesel is easier to extract from crude oil. Consequently, diesel is cheaper than other gasoline products in different countries in the world. But when ULSD (Ultra-Low Sulfur Diesel) was introduced between the year 2006 and 2010, the cost to produce diesel substantially increased, as this mechanism requires further refining. 2. Tax
The tax levied on gasoline and diesel varies from one country to the other. Say, for instance, if the United States Federal levies a tax of 18 cents per gallon for diesel, the European nations will impose more lightly. Since tax is one of the primary elements for the diesel’s end price, only tax policies determine the cross-country gaps in diesel and gasoline prices largely. 3. Demand
A fuel like diesel not only helps in powering up the cars but also various types of vehicles that are used for public transportation. These usually include huge delivery trucks, heavy-duty vans, off-road vehicles, generators, machinery, boats, etc. During economic expansion periods, the demand from the industrial sectors increase significantly, and that’s the reason diesel rates exceed other gasoline prices. Keep in mind that the greater the demand for diesel, the higher the price. 4. Seasonality
The fuel that is utilized for home heating include the same components that are manufactured for diesel. Therefore, as a result, diesel price is also affected by the demand for heating oil. It is particularly in winters that the demands for heating oil rise, which also inclines the retail price of diesel.
Quarterly Diesel Price Trend in Bhopal between July and September 2018
|Opening date price||Rs.71.12 per litre||Rs.72.58 per litre (As of 2 August)||Rs.74.00 per litre|
|Closing date price||Rs.71.46 per litre||Rs.74.00 per litre||Rs.78.48 per litre|
|Highest price||Rs.72.10 per litre||Rs.74.00 per litre||Rs.78.48 per litre|
|Lowest price||Rs.71.12 per litre||Rs.71.58 per litre||Rs.74.00 per litre|
Diesel Price Trend in July in Bhopal
- In July, trend in diesel price in Bhopal, the capital city of Madhya Pradesh, has been identified on the basis of the daily variations in fuel prices.
- Owing to dynamic fuel pricing, petrol and diesel prices shall be reviewed considering the transactional elements like the rate of petroleum per barrel and the dollar’s exchange rate versus the Indian currency.
- The opening date and closing date prices stood at Rs.71.12 per litre and Rs.71.46 per litre for the month. Fuel price offered on the sixtieth of July has been considered to be the highest fuel rate.
- Both downward and upward trends can be seen in the month of July in the capital city of Madhya Pradesh.
- Though the month has seen an inclining trend, the rate of growth in fuel prices in Bhopal just below 0.50% as crude oil rate per barrel fell to $73.47 from $73.83 this month.
- On the first July, one dollar was equivalent to Rs.68.47 and on the last day of the month, it stood at Rs.68.52. This was another motive behind a growth rate of 0.47%.
Diesel Rate Trend in August in Bhopal
- Between 1 August and 31 August, daily fuel prices were reviewed according to the methodology of dynamic fuel pricing.
- Fuel rates in Bhopal were on the rise in the first few days of the month. They were neither increased nor decreased by all the 3 Indian oil corporations: Indian Oil, HPCL and Bharat Petroleum.
- Except for the sixteenth and the twentieth, the prices of diesel in the city retained unchanged in the second week. Other cities in Madhya Pradesh also, there were no changes in the rate of diesel in the same period.
- As of 26 August, diesel rate a litre was Rs.72.91. The price increased by 30 paise per litre the next day.
- For the four days of August, fuel rates increased by over 20 paise per litre. On 31st, the closing date of the month, diesel rate in Bhopal was registered at Rs.74 per litre.
- The growth was almost 2% this month. Fuel pricing was not impacted much by the cost of unrefined per barrel, which was seen moving downwards.
- The upward trend was caused by a substantial rise in the dollar’s value against the Indian rupee.
Diesel Price Trend in September in Bhopal
- Fuel companies soared the selling price of diesel per litre by Rs.2 a litre in the week 1. They further increased the fuel rate by Rs.1.30 per barrel the following week.
- On the eightieth and the ninetieth of September, the fuel was sold at a price tag of Rs.77.90 per litre across all fuel stations in the capital city.
- While diesel rate had been steady at Rs.78.17 per litre on the 25th and the 26th, the price was increased by 12 paise per litre on the 27th.
- In September, the state-run companies accelerated the rate of the fuel by almost Rs.4.50 per litre in tandem with overseas factors as mentioned above.
- The average price of the Indian Crude Basket dropped to $77.88 per barrel from $72.53 per barrel. It was a massive drop that produced a growth rate over 6% this month.
- On 10 September, the Congress Party ran a nationwide bandh to protest against expensive diesel and petrol.
- But, the pricing and price revision of diesel in the city remained uninfluenced by the strike. The Centre denied cutting the excise duty on diesel immediately.
- The closing date price for the month of September stood at Rs.78.48 a litre that was also the highest diesel rate for the second quarter of the financial year 2018-2019.
- The sales tax and the excise duty, which are the domestic influencers, stood at Rs.15.33 and 23.22% on a litre on diesel this quarter.
Quarterly Price Price Trend in Bhopal between April and June 2018
|Opening date price||Rs.67.95 a litre||Rs.69.38 a litre||Rs.72.88 a litre|
|Closing date price||Rs.69.38 a litre||Rs.72.93 a litre||Rs.70.93 a litre|
|Highest price||Rs.69.42 a litre registered on the 24th||Rs.72.99 a litre registered on the 29th||Rs.72.88 a litre registered on the 1st|
|Lowest price||Rs.67.95 a litre registered on the 1st||Rs.69.38 a litre registered on the 3rd||Rs.70.93 a litre registered on the 27th|
Diesel Price Trend in Bhopal in April 2018
- In Bhopal, the capital city of Madhya Pradesh, diesel rate per litre was fixed at Rs.67.95 a litre as on 01 April 2018. It is also called as the opening date price.
- The fuel prices offered by Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited differ minutely.
- Dynamic fuel pricing is used by these three state-owned fuel companies in order to revise the price of diesel per litre on a daily basis. The exchange rate and crude oil costs matter a lot under this system.
- Diesel rates in Bhopal were revised using dynamic fuel pricing throughout the month. They depicted both downward and upward trends in sync with overseas influencers.
- On the 3rd and the 4th, the fuel was marketed at a price of Rs.68.24 a litre. The fuel rate was also steady at Rs.68.72 a litre on the 19th and the 20th.
- Diesel rate in Bhopal was unchanged at Rs.69.38 a litre during the last six days of the month.
- All the three fuel companies reported an upward trend for this month because of the increased crude oil cost.
Diesel Price Trend in Bhopal in May 2018
- Because of the Karnataka State assembly election, diesel rates in the city of Bhopal were reported to be steady between 01 May 2018 and 11 May 2018.
- After the second week, fuel companies began increasing the fuel price in tandem with the exchange rate and crude oil rates.
- The fuel rate stood at Rs.69.65 a litre on the 14th and Rs.69.88 a litre on the 15th. It was gradually increased to Rs.71.42 a litre on the 21st.
- Since diesel prices in the capital city of Madhya Pradesh moved upwards this month, the highest fuel rate was noted at Rs.72.99 a litre on the 29th.
- The opening date price, which was booked at Rs.69.38 a litre, also turned out to be the lowest fuel price for the month.
- Like the first month, the INR, the domestic currency, devalued slightly against the USD, the base currency this month also. But, the revision of fuel rates was not influenced by the USD/INR exchange rate.
- It was reported by Petroleum Planning and Analysis Cell that the average crude oil cost was up by $6 per barrel in June 2018. Triggered by the increased crude oil cost, the growth rate increased to 5.11% from 2.10%.
Diesel Price Trend in Bhopal in June 2018
- Excise duty and Value-added Tax also directly impact the revision of not only diesel rates but also petrol rates.
- During this quarter, excise duty remained unchanged at Rs.15.33 on diesel per litre; and VAT also remained unchanged at 23.22% in the city of Bhopal.
- So, it can be inferred that the revision of diesel rates was done considering the fluctuations in the exchange rate and crude oil rates.
- Under dynamic fuel pricing, the opening date price stood at Rs.72.88 per litre. The fuel price was dropped to Rs.72.38 a litre on the 7th It was further declined to Rs.71.41 a litre on the 14th in the city.
- The fuel was valued at Rs.71.27 a litre on the 21st. By the end of the last week of June 2018, the fuel rate stood at Rs.70.93 a litre.
- In June 2018, diesel rate in Bhopal was down 2.67% to Rs.70.93 a litre caused by the slow-moving crude oil market.
- Between April 2018 and June 2018, the price of diesel per litre in the city of Bhopal soared by 4.38%. For this quarter, the highest and lowest fuel rates stood at Rs.72.88 a litre and Rs.67.95 a litre respectively.
Trend in Diesel Price in Bhopal between January and March 2018
|Opening date price||Rs.62.38 a litre||Rs.67.70 a litre||Rs.65.80 a litre|
|Closing date price||Rs.67.60 a litre||Rs.65.63 a litre||Rs.67.76 a litre|
|Highest price||Rs.67.60 a litre recorded on 31st||Rs.67.81 a litre recorded on 6th and 7th||Rs.67.76 a litre recorded on 31st|
|Lowest price||Rs.62.38 a litre recorded on 1st||Rs.65.63 a litre recorded on 28th||Rs.65.08 a litre recorded on 1st|
Trend in Diesel Price in Bhopal in January 2018
- Since June 2017, dynamic fuel pricing is in place in India. All state-owned fuel entities shall take into account the deviations in the exchange rate and crude oil costs to revise the fuel price every day.
- After the daily revision at 6:00 a.m. on 1st, the fuel price was reviewed to Rs.62.38 a litre in Bhopal, the capital city of Madhya Pradesh. The price is inclusive of the central tax of Rs.15.33 a litre.
- Value-added Tax (VAT) is something that changes within the states. As of 31st January, in Bhopal, VAT was levied at 23.22%.
- Because of VAT, the price of diesel in Delhi, the national capital, and Bangalore is lower compared to that of in Bhopal.
- Like other cities, the diesel rate in Bhopal also uninterruptedly increased under the daily revision system.
- In sync with the weekly updates of the currency conversion rate and international unrefined oil rates, the weekly growth rate kept on accelerating until the conclusion of the month.
- To make it clear, the average crude oil prices stood at Rs.62.64 a litre, Rs.63.60 a litre, Rs.65.11 a litre and Rs.66.38 a litre for the first, second, third and fourth weeks.
Trend in Diesel Price in Bhopal in February 2018
- The tax framework for diesel has been recently revised on 1st February by the BJP Government. Despite the revision, the daily revision system was not affected and offered a price of Rs.67.7 per litre.
- In this month, the USD/INR conversion ratio was not consistent throughout the month. The rate was down at the beginning of the month and began appreciating afterwards.
- You can also observe a combined response from the crude oil cost, which fell to $63.54 per barrel in February. It was $67.06 per barrel in January.
- As a result, for the first week, the average diesel rate stood at Rs.67.72 a litre. It reduced to Rs.64.71 a litre for the week 2.
- For the second half, in Bhopal, the average price once again increased to Rs.65.92 a litre. But, the whole month declared a price reduction of 3.05%.
- During the first two months, no variations were done by the State Government of Madhya Pradesh and the Government of India.
- Except a few changes in the demand pattern for unrefined oil and the INR/USD exchange rate, other overseas factors were not changed in OPEC countries.
Trend in Diesel Price in Bhopal in March 2018
- In Bhopal, between January 2018 and March 2018, the OMCs expenses were estimated to be Rs.10.30 per litre, the excise duty was levied at Rs.15.33 per litre, and the commission charged by dealers was Rs.2.51 per litre.
- The entire quarter produced an average price of Rs.66.59 a litre, which has been lower compared to that of in January.
- In March 2018, on the Forex Market, the USD was depreciated to Rs.65.13 at 1.70%. The crude oil cost increased slightly compared to the previous month.
- Therefore, the fuel market gradually accumulated the price. For the month, the highest rate stood at Rs.67.76 a litre on 31st as a result. This was the highest fuel price for the complete quarter.
- The lowest rate between January 2018 and March 2018 stood at Rs.62.38 a litre in January. The overall growth rate stood at 8.62% for the quarter.
What Is Dynamic Fuel Pricing?
On June 16, 2017, the OMCs (Oil Marketing Companies) of the public sector initiated the system of “dynamic fuel pricing” to revise the fuel prices on a daily basis based on the market trends and several other factors.
Before this system was implemented, the petrol and diesel rates were updated on the first and sixteenth day of every month. That’s why it was called “fortnight fuel pricing.” However, it had a lot of drawbacks and to overcome them, the mechanism of dynamic pricing was initiated.
According to the dynamic system, the state-owned oil firms change the prices every morning at 6:00 a.m. IST (Indian Standard Time) based on two important factors:
- CER – Currency Exchange Rate
- IMR – International Market Rate
How To Check The Diesel Price Without Going To The Fuel Pump?
A customer can get access to the everyday updated price of both diesel and petrol for every city by downloading and installing a mobile application like Fuel@IOC, which is developed by Indian Oil Corporation.
However, if a customer doesn’t have a smartphone, then there is an option of SMS too. The diesel price can be checked or tracked by sending the following format to the number: 9224992249
SMS Format: RSP
Note: Every petrol pump displays its dealer code on its premise.
How Has Diesel Price Moved After Implementing Dynamic System In Bhopal?
The industry insiders state that the fuel prices are determined by not only the movement of international crude oil prices but also the market’s demand-supply situation and dollar/rupee exchange rate.
Even though a shortage of the product causes an incline in its cost, an increased supply leads to a declination. In the initial weeks of its implementation (that is from June 16 to June 22), the international crude oil prices for the Indian market plummeted by 2.5% and the diesel price dropped by 1%.
Does GST Affect The Diesel Rates In Bhopal?
No, GST doesn’t have any influence on the diesel rates in Bhopal. Including GST for diesel or any other fuel is a long process and requires efforts from the government as well as the oil marketing companies.
Also Check Diesel Price in NearBy Cities of Bhopal
|Diesel Price in Delhi||Diesel Price in Indore|
|Diesel Price in Raipur||Diesel Price in Mumbai|
|Diesel Price in Pune||Diesel Price in Nagpur|
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