Diesel Price in Bihar
Diesel plays an important role in building the wealth of a nation, including developing economies such as India and China. As far as India is concerned, it largely imports crude oil from oil-producing countries, refines within the country and supplies to end users through diesel stations. Only 1/3 of oil requirements is met through the domestic production. This could be a reason why fuel prices in India are high compared to a few other countries. The diesel consumption within the country has been on the high since the last 4-5 years. Like other states, Bihar, the 13th largest state in India, has been doing well in terms of commercial activities and industrial production. Obviously, the diesel consumption is growing within the state.
Usually, the diesel price is lower than the petrol price since diesel is a highly subsidised commodity in India. The diesel price in Bihar was above Rs.67 a litre during the first week of March 2018. This price is inclusive of central taxes and local taxes. In February 2018, central taxes were revised to Rs.15.33 a litre in the Union Budget. In Bihar, Value-added Tax (VAT) is imposed at 19%. It works to be Rs.9.44 a litre. These are the two vital elements of the retail selling price of diesel in Bihar. In Karnataka, VAT on diesel is also imposed at 19%.
|Also Check: Diesel Price in Patna|
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:
- Mobile applications: Download mobile applications to get the current fuel rates in Bihar. Use either My HPCL or SmartDrive or Fuel@IOC.
- SMS services: Obtain the latest fuel prices in Bihar through SMS services offered by Indian Oil, Bharat Petroleum and Hindustan Petroleum.
- Online services: Make a visit to the official websites of either Hindustan Petroleum, Bharat Petroleum or Indian Oil.
Quarterly Diesel Price Trend in Bihar between July and September 2018
|Opening date price||Rs.72.18 a litre||Rs.72.97 a litre||Rs.75.80 a litre|
|Closing date price||Rs.72.83 a litre||Rs.75.80 a litre||Rs.80.17 a litre|
|Highest price||Rs.73.59 a litre recorded on the 14th||Rs.75.80 a litre recorded on the 31st||Rs.80.17 a litre recorded on 28th, 29th and the 30th|
|Lowest Price||Rs.72.18 a litre recorded on the 1st||Rs.72.97 a litre recorded on the 1st||Rs.75.80 a litre recorded on the 1st|
Diesel Price Trend in Bihar in July 2018
- Fuel pricing in India is revised on a daily basis under the dynamic fuel pricing mechanism and is executed by State-run oil companies.
- Under the dynamic fuel methodology, oil companies arrive at the retail price of diesel by including the global crude oil price and the exchange rate of the rupee over the U.S. dollar.
- On the 1st of July, the diesel price in Patna, the capital city of Bihar, stood at Rs.72.18 per litre - the lowest price of the month.
- Prices continued to rise in the first and second weeks due to the slight increase in crude oil prices in the global market.
- On the 14th, diesel price rose to touch the highest price for the month when a litre was sold at Rs.73.59.
- Despite declining in the third and fourth weeks, diesel prices never came below the opening price of the month.
- Overall, diesel prices in Bihar grew by 0.91% impacted by the marginal rise in crude oil price in the international market.
Diesel Price Trend in Bihar in August 2018
- On the 1st of August, the diesel price in Bihar stood at Rs.72.97 per litre, also, the lowest price recorded during the course of the month.
- Diesel prices in Bihar and other states in the country continued to incline sharply over the course of first and second weeks.
- The increase in diesel prices was influenced by the steep incline in crude oil rates in the global market which was witnessed across the globe.
- Due to geopolitical tensions between the U.S. administration and Iran as the former pulled out of the Iran nuclear deal and was readying to impose sanctions on the latter.
- This led to a shortage in the supply of crude oil in the market as Iran reduced the supply of oil in the market prompting oil prices to increase sharply.
- By the end of the month, diesel prices increased to touch the highest price on the 31st when a litre of diesel in Bihar was sold at Rs.75.88.
- Diesel prices in Bihar in August grew by 3.88% attributed to the significant rise in the global crude oil price.
Diesel Price Trend in Bihar in September 2018
- The diesel price in Bihar on the 1st of September stood at Rs.75.80 per litre. This was the lowest diesel price recorded for the month in Bihar.
- There was no respite from the rising fuel prices across the country as oil prices continued to soar to new levels.
- Due to the escalating geopolitical tensions between the U.S. and Iran, crude oil prices increased to touch a four-year high of $80 per barrel.
- Also, the rupee fell to its record level of Rs.72 over the U.S. dollar which influenced the sharp increase in diesel and petrol prices in Bihar.
- Several states such as Rajasthan, Karnataka, Andhra Pradesh and West Bengal announced a reduction in the local sales tax or VAT offering some relief to consumers of those states.
- On the 28th, diesel prices in Bihar rose to touch the highest price when a litre was available at Rs.80.17 which was kept unchanged until the last day of the month.
- Overall, diesel prices in Bihar in September grew sharply by 5.77% primarily because of the significant rise in crude oil prices in the market and the record drop in the rupee-dollar exchange rate.
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.
Quarterly Diesel Price Trend in Bihar Between April and June 2018
|Opening date price||Rs.69.19 per litre||Rs.70.57 per litre||Rs.73.94 per litre|
|Closing date price||Rs.70.57 per litre||Rs.73.95 per litre||Rs.72.05 per litre|
|Highest price||Rs.70.61 per litre recorded on 24th||Rs.74.05 per litre recorded on 29th||Rs.73.94 per litre recorded on 1st|
|Lowest price||Rs.69.19 per litre recorded on 1st||Rs.70.57 per litre recorded from 1st to 11th||Rs.72.05 per litre recorded from 27th to 30th|
Diesel Price Trend in Bihar in April 2018
- On the 1st of the month, diesel was sold at Rs.69.19 a litre in Patna, the capital of Bihar, this was also the lowest diesel price for the month.
- Diesel prices are revised every day by State-run oil companies such as Bharat Petroleum, Indian Oil and Hindustan Petroleum.
- Oil companies compute diesel prices under the ‘Dynamic Fuel Pricing’ mechanism where the preceding day’s crude oil rate and the currency exchange value is considered to fix the daily price of diesel in a city.
- During the first and second-week diesel prices in Bihar inclined marginally in tandem with the rise in the global crude oil price.
- The crude oil rate continued to climb higher in the backdrop of the geopolitical tensions between the US and Iran which had the potential to disrupt the supply of oil in the international market.
- Diesel prices rose to post the highest price at Rs.70.61 a litre on the 24th largely due to the incline in crude oil prices.
- By the end of the month, diesel prices in Bihar grew by 1.99% influenced by the rise in the global crude oil rate.
Diesel Price Trend in Bihar in May 2018
- Fuel companies kept diesel prices unchanged in Bihar till the 11th of the month as crude oil prices remained steady.
- On the 1st of May 2018, diesel was retailed at Rs.70.57 per litre in Bihar, also the lowest diesel price for the month in the State.
- Post 11th, fuel companies revised diesel prices to stand at Rs.70.82 a litre on the 12th of May 2018.
- With potential sanctions on Iran by the US over the latter pulling out of the nuclear deal between to two nations, crude oil prices began inclining sharply.
- By 21st of the month, diesel prices rose by Rs.1.96 a litre influenced by the sharp incline in crude oil rates.
- On 29th May 2018, diesel prices touched an all-time high of Rs.74.05 a litre in Bihar attributed to the high crude oil rate.
- Domestic factors such as taxes, operational costs or dealer commissions were untouched; hence, the rise in diesel prices is attributed to the significant increase in crude oil prices and a weaker rupee.
- Overall, diesel prices in Bihar in May 2018 grew considerably by 4.79% largely due to the crude oil rate in the global market.
Diesel Price Trend in Bihar in June 2018
- With crude oil prices on the incline in the global market, diesel prices in the country continued to be on the higher price band.
- However, on the 1st of June 2018, fuel companies decreased diesel prices by 5 paise per litre in the backdrop of a steady crude oil price. This is also the highest diesel price registered for the month.
- The members of the Organisation of Petroleum Exporting Countries (OPEC) and its ally Russia decided to meet on the 22nd to tackle the high crude oil rates in the global market.
- With geopolitical tensions declining, crude oil prices slightly decreased, hence, fuel companies cut diesel prices in Bihar.
- By mid-June 2018, diesel prices reduced by Rs.1.47 a litre affected by the fall in crude oil rates.
- On 22nd, the OPEC and Russia agreed to increase the oil output due to the high demand and to tackle higher fuel prices.
- Diesel prices in Bihar declined to post its lowest for the month at Rs.72.05 a litre on the 27th, which was kept unchanged until the end of the month.
- Overall, diesel prices in Bihar in June 2018 declined by 2.56% largely due to the increase in output which led to the decline in the global crude oil price.
Quarterly Diesel Price Trend In Bihar Between January 2018 And March 2018
|Opening date price||Rs.63.38 per litre||Rs.67.88 per litre||Rs.66.87 per litre|
|Closing date price||Rs.67.77 per litre||Rs.66.70 per litre||Rs.69.01 per litre|
|Highest price||Rs.67.77 per litre recorded on 31st||Rs.68.19 per litre recorded on 7th||Rs.69.01 per litre recorded on 31st|
|Lowest price||Rs.63.38 per litre recorded on 1st||Rs.66.69 per litre recorded on 24th & 25th||Rs.66.87 per litre recorded on 1st|
Diesel Price Trend In Bihar In January 2018
- On 1st January, diesel price for a litre in Bihar stood at Rs.63.38, the lowest price for a litre of diesel in the month.
- In the first week, diesel price rose slightly before it increased by a Rupee by the end of the second week. The increase in price of diesel is attributed to the increase in the global crude oil price.
- During the third week, diesel prices started to move upwards due to rise in the WTI Crude and Brent Crude prices.
- The cost of diesel hit the highest on 31st commanding Rs.67.77 for a litre in tandem with the increase in global crude oil price. The INR value increased over the USD and this impacted the decline in the price of diesel.
- The Central and State Government refrained from increasing or decreasing the Excise Duty and Value Added Tax (VAT), respectively, which did not impact the pricing of diesel for the month.
- Diesel prices in Bihar in January 2018 witnessed an upward trend in 6.92% largely due to the increase in crude oil prices and the decrease in value of the USD over INR.
Diesel Price Trend In Bihar In February 2018
- Price for a litre of diesel in the state of Bihar on 1st February stood at Rs.67.88, a slight increase compared to the previous month.
- With increased demand for crude oil in the global market, diesel price began to rise to eventually record its highest price of Rs.68.19 per litre on 7th.
- However, in the second and third weeks, prices of diesel started to fall significantly recording its lowest price at Rs.66.69 per litre on 24th and 25th.
- The significant reduction in diesel prices was attributed to the decrease in the USD value over INR in the last week of February. Additionally, the price of the Indian Basket reduced from $65.12 per barrel to $63.99 per barrel, which led to the fall in fuel prices.
- On 28th February, diesel price in Bihar stood at Rs.66.70 per litre.
- Overall, diesel price in Bihar for the month was on a downward trend at 1.73% largely impacted by the reduction in crude oil prices in the international market.
Diesel Price Trend In Bihar In March 2018
- The price for a litre of diesel stood at Rs.66.87 on 1st March - the lowest price for diesel for the month.
- Diesel prices in the first three weeks continued to rise slightly due to an increase in the global crude oil prices.
- In the last week of the month, diesel price began to increase with the highest price in Bihar recorded at Rs.69.01 per litre on 31st.
- The significant rise in fuel cost was in sync with the increase in global crude oil price. A barrel of crude oil in the global market stood at $62.04 on 14th and rising up to $66.80 per barrel on 26th, which impacted the rise in the price of diesel.
- Diesel price in Bihar reflected an upward trend of 3.20% during the month of March 2018, mainly impacted by the rise in global crude oil price.
Computation of Diesel Price in Bihar
Retail price of diesel in Bihar = Crude oil costs + OMC overheads + local taxes + state taxes + commission to dealers
- 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.
- 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.
- 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.
- 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.
- 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.