Today's Diesel Price in Bihar

Analysis of Diesel Price in Bihar

To make a comparative analysis of diesel prices in Bihar, let's consider the three prime cities of the state, which include Patna, Gaya and Bhagalpur. In January 2018, the diesel price in Patna as on the opening date was Rs.63.38 a litre. On the closing date, it increased to Rs.67.77 a litre. The lowest price was recorded at Rs.63.38 a litre and the highest price at Rs.67.77 a litre. In February 2018, diesel prices in Patna were down by 1.77%. The opening price was Rs.67.90 a litre and the closing price was Rs.66.72 a litre in the city.

In Gaya, diesel retailed with an average price of Rs.68.50 a litre during the first 15 days of March 2018. It stood at Rs.64.40 a litre on the first day of January 2018. Over the next one month, the diesel price in Gaya increased to Rs.68.99 a litre. During the early March 2018, diesel traded at Rs.67.89 a litre in Bhagalpur. Three months ago, it was at Rs.62.7 a litre. Within these cities, the diesel rate will change slightly owing to the dealer's commission.

Diesel Rate in Bihar vs Dynamic Fuel Pricing

Dynamic fuel pricing is a recently announced fuel revision methodology that was adopted by all state-run oil marketing companies such as Bharat Petroleum, Hindustan Petroleum and Indian Oil in Bihar. It was introduced in June 2017. The system requires all oil marketing enterprises to revise fuel rates on a daily basis. The revision should be done on the basis of the exchange rate and crude oil costs. After the revision at 06:00 a.m., oil marketing enterprises, also called OMCs, will update their official websites for the public to refer.

Do not forget to make a note of regularly changing diesel prices in Bihar if you are a heavy consumer. Even the smallest change will make a huge variation in the billing amount. Let's assume the diesel rate in Bihar has fallen by 10 paise today. If you are buying 100 litres of diesel, the billing amount will decrease by Rs.10. How can you trace the latest diesel price in Bihar? There are three options:

1. Mobile applications: Download mobile applications to get the current fuel rates in Bihar. Use either My HPCL or SmartDrive or Fuel@IOC.
2. SMS services: Obtain the latest fuel prices in Bihar through SMS services offered by Indian Oil, Bharat Petroleum and Hindustan Petroleum.
3. Online services: Make a visit to the official websites of either Hindustan Petroleum, Bharat Petroleum or Indian Oil.

Who will gain from Dynamic Fuel Pricing?

The daily fluctuations in crude oil costs and the exchange rate are instantly transferred to fuel consumers under the dynamic fuel pricing approach. This is a key benefit. Oil marketing enterprises will easily reduce the minimum capital required to run daily operations. Both cash receipts and payments can be effectively managed. Automated diesel stations can easily revise fuel rates as dynamic fuel pricing fosters the automation drive.

Computation of Diesel Price in Bihar

Retail price of diesel in Bihar = Crude oil costs + OMC overheads + local taxes + state taxes + commission to dealers

1. Crude Oil Costs: Costs of crude oil will be computed in terms of Indian rupees. As of 3 February 2018, the cost of crude oil per litre will be Rs.26.42 a litre. It is subject to change.

1. Expenses Spent by OMCs: OMCs spend a lot of expenses, including landing costs, refinery processing charges, freight charges, landing overheads, etc. They are estimated to be Rs.8.30 a litre approximately.

1. Central Levies: The central tax is an important element. As of 3 February 2018, it will be Rs.15.33 a litre on diesel. The dealer 's price will be Rs.52.12 a litre.

1. Dealer Commission: Fuel retailers in Bihar will impose a commission of Rs.2.51 a litre on diesel. The cost of the fuel before VAT will be Rs.54.63 a litre.

1. Local Taxes: The policies related to imposing local taxes on diesel will differ from state to state. As of 4 September 2017, VAT on diesel charged by the Government of Bihar was 19%. So, 19% of Rs.52.12 will be Rs.9.90.

Forces impacting Diesel Price in Bihar

Every day, the new diesel price is offered due to the daily revision. Other factors that impact the diesel rate in Bihar include crude oil costs, the USD/INR exchange ratio, central taxes and local taxes. Over the last 4-5 months, the central tax was dampened twice. In October 2017 and February 2018, it was reduced by Rs.2 a litre. In October 2017, VAT on diesel was reduced in Uttar Pradesh, Maharashtra and Gujarat, but not in Bihar.

GST vs Today's Diesel Rate in Bihar

Today's diesel price in Bihar will remain unaffected by GST, which has been introduced in India last year. GST does not tax diesel currently. Petrol is also not taxed under GST. The imposition of GST will drop the diesel price and revenues. The GST Council may consider bringing diesel under the GST structure. But, it is a tough decision. The Council has to revise the current tax rates or impose additional taxes to offset the losses.

*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.