Diesel Prices in Bhubaneswar
Bhubaneswar is the capital city of Odisha. It is the largest city in the state. With a growing number of diesel-run vehicles and industrial units, the consumption of diesel is increasing year by year in Odisha. Crude oil is the basic raw material to produce diesel. The indigenous production of crude oil in India is not sufficient to meet the oil requirements of the country. This is the reason why the cost of diesel is growing in all parts of the nation including Bhubaneswar.
|Also Know: Diesel Price in Odisha|
Trends in Diesel Price in Bhubaneswar
On the opening day of September 2017, the cost of diesel was Rs.61.25. On the closing day of the month, it was Rs.63.12. The lowest price in the month was Rs.61.25 and the highest price was Rs.63.17. On the first day of August 2017, the petrol price in the city was Rs.59.80 that was later increased to Rs.61.39 on the last day of August 2017. The highest and lowest rates in the month were Rs.61.75 and Rs.59.80 respectively.
Similarly, In July 2017, the lowest and highest prices in the city were Rs.57.51 and Rs.59.86 respectively. On the first day of the month, the cost of diesel was Rs.57.51. On the last day of the month, it was Rs.59.86. In June 2017, the highest rate was Rs.58.69 and the lowest rate was Rs.58.14. On the closing day of the month, the diesel price in the city was Rs.58.14. On the first day of the month, it was Rs.58.69.
Diesel prices in Bhubaneswar have increased by 2.96% in September 2017 and by 2.59% in August 2017. Likewise, they were up by 3.93% in July 2017. In June 2017, diesel prices in the city have decreased by 0.95% due to the effect of dynamic fuel pricing that was implemented on 16 June 2017. Between 1 January 2017 and 17 October 2017, the highest diesel rate offered in the city was Rs.63.17.
Diesel Price in Bhubaneswar and Other Major Cities of India
Let’s consider the four major cities of India in order to make a comparative study of diesel rates. Between 7 October 2017 and 16 October 2017, the average price of diesel offered in Bhubaneswar was Rs.61.08. Between the same period, the average prices offered in New Delhi, Mumbai, Kolkata, and Chennai were Rs.56.97, Rs.59.92, Rs.59.64, and Rs.59.98 respectively. Among all cities, the highest rate was offered in Mumbai and the lowest price was offered in New Delhi.
What is the Frequency of Revising Diesel Prices in Bhubaneswar?
All state-owned diesel bunks in Bhubaneswar have been revising diesel prices on a daily basis since 16 June 2017. The diesel price will differ from day to day under the new fuel pricing model called dynamic fuel pricing. Other developed countries such as the United States of America and Australia have also been following the same model to determine the price of diesel. Dynamic fuel pricing model ensures transparency in fuel pricing and enables diesel distributors to follow the best stock management principles.
The consumption of diesel is more compared to petrol in any part of the world. So, it is extremely important to track the latest price of diesel especially for institutional customers. Even the smallest variation can make a big difference to the billing amount. The current price of diesel in Bhubaneswar can be checked online by visiting the websites of Indian Oil, Shell Oil, Hindustan Petroleum, and Bharat Petroleum. The best way is to download the mobile applications of these oil marketing companies to get the revised price of diesel in the city.
How are Diesel Prices in Bhubaneswar Assessed?
The following formula is used to compute the retail selling price of diesel in Bhubaneswar:
Retail selling price = cost of crude oil + fuel cost after refining + price charged to dealer before VAT+ fuel cost before VAT
- The cost of crude is the cost incurred by oil marketing companies to buy crude oil from foreign oil companies. It also includes ocean freights.
- Fuel cost after refining includes the profit margin of oil marketing companies, freight, transportation costs, refinery processing, entry taxes, and landing costs.
- Price charged to dealers before VAT is the sum of fuel cost after refining and the excise duty imposed by the central government.
- Fuel cost before VAT is the sum of the price charged to dealers and the commission charged by pump dealers.
- Retail selling price is the sum of fuel cost before VAT, pollution cess, and the tax imposed by the state government.
Factors impacting Diesel Prices in Bhubaneswar
- Cost of Crude il: Crude oil is an international commodity. If the cost of crude oil increases internationally, the retail price of diesel will increase. Similarly, if the cost of crude oil decreases globally, the retail selling price of diesel will decrease. The cost of crude oil is reliant on seasonal variations, fluctuations in the currency exchange rate, overseas supplies and reserves, and political events in oil-producing companies.
- Exchange Rate: An exchange rate is the rate at which one currency will be exchanged for another. The Reserve Bank of India monitors the USD/INR pair. The bank determines the value of the USD against the INR. If the value of the USD falls against the INR, the cost of crude oil will decrease. If the USD gains against the INR, the cost of crude oil increase.
- Central Excise and VAT: Petrol is taxed by the state and central governments. The tax imposed on petrol by the central government will remain the same across the state, but the tax imposed on petrol by the state government will fluctuate from state to state. If the central excise duty increases, the cost of diesel will increase. Similarly, if the central excise duty decreases, the cost of diesel will decrease.
This is how all the aforementioned factors will impact diesel prices in Bhubaneswar.
Impact of GST on Diesel prices in Bhubaneswar
All petroleum products do not fall under the GST regime. GST is a unified tax platform for all categories of taxpayers in India. It is applicable to all types of goods and services that are transacted across the country. Since diesel does not fall under the regime of GST currently, diesel prices in Bhubaneswar will remain unaffected. Under the GST framework, all types of goods and services are taxed under four slabs, which include 5%, 12%, 18%, and 28%. Even though diesel is taxed at 28%, diesel prices in Bhubaneswar will be cheaper.
Petrol and Diesel Prices in Bhubaneswar
The average price of diesel was Rs.61.01 and the average price of petrol was Rs.67.30 as on the latest date.
|Also Check: Diesel Price in Odisha|
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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.