Diesel Price in Chandigarh
Chandigarh is one of the first planned cities in post-independent India. The city is known for its urban design and modern architecture. Chandigarh’s transportation system is well assisted by state-owned buses and other popular public transport vehicles such as taxis and auto rickshaws. With a growing population in the Union Territory, diesel consumption has increased rapidly.
Diesel prices in Chandigarh are revised on a daily basis influenced by several factors. The diesel price in Chandigarh is largely influenced by international and domestic elements. While international factors include global crude oil price and the exchange rate of the US dollar, domestic factors include oil-companies’ profit margin, dealer commission and taxes.
Let’s review each of these factors to understand how and why diesel prices are revised every day and how it’s calculated.
|Also Know: Diesel Price in Punjab|
Why are Diesel Prices Revised Daily?
Diesel prices in Chandigarh and across other cities in India are revised under the ‘Dynamic Fuel Pricing’ mechanism. State-owned oil companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum include the preceding day’s global crude oil price and the exchange rate of the US dollar to the Retail Selling Price (RSP) of diesel.
The diesel price in Chandigarh is revised daily at 6 a.m. IST based on the dynamic fuel pricing mechanism. Prior to the daily revision in diesel prices, India used to change or update fuel prices every fortnight. However, oil companies had to wait a fortnight to increase or decrease the diesel price, which led to losses. Hence, the fortnightly method was stopped and the dynamic fuel pricing method was introduced on 16 June 2017.
With the daily revision of diesel prices, fuel companies were able to pass on the decline or rise in crude oil prices to customers immediately. Both the customers and oil companies are able to take advantage of the latest global crude oil price under the new pricing methodology.
Quarterly Diesel Price Trend in Chandigarh between July and September 2018
|Opening date price||Rs.65.43 a litre||Rs.65.92 a litre||Rs.68.31 a litre|
|Closing date price||Rs.65.96 a litre||Rs.68.31 a litre||Rs.72.44 a litre|
|Highest price||Rs.66.63 a litre recorded on the 14th||Rs.68.31 a litre recorded on the 31st||Rs.72.44 a litre recorded on 28th, 29th and the 30th|
|Lowest Price||Rs.65.43 a litre recorded on the 1st||Rs.65.92 a litre recorded on the 1st||Rs.68.31 a litre recorded on the 1st|
Diesel Price Trend in Chandigarh in July 2018
- Diesel rates in Chandigarh, as well as other states, are based on the dynamic fuel pricing mechanism.
- Under this mechanism, State-run Oil Marketing Firms fix the selling price of diesel by including the global crude oil price and the exchange rate of rupee over the U.S. dollar before adding the local sales tax or VAT and the Centre’s excise duty.
- Based on this method, the diesel price in Chandigarh on the 1st of July stood at Rs.65.43 per litre - the lowest price recorded in Chandigarh for the month.
- Prices remained unchanged until the 5th before increasing it by 8 paise per litre on the 6th and were hiked over the course of the first and second weeks.
- On the 14th, diesel prices in Chandigarh rose to touch the highest for the month at Rs.68.31 per litre.
- The rise in diesel prices in Chandigarh comes amid a marginal increase in crude oil prices in the global market.
- Oil companies reduced the diesel prices in the next couple of weeks but were not lower than the opening price of the month.
- The diesel price trend in Chandigarh in July inclined by 0.81% attributed to the slight increase in crude oil prices.
Diesel Price Trend in Chandigarh in August 2018
- The diesel price in Chandigarh on the 1st of August declined by 4 paise per litre when the fuel was sold at Rs.65.92 - the lowest price recorded during the month in Chandigarh.
- Diesel prices were increased in subsequent days rising to touch Rs.66.63 per litre on the 7th which was kept unchanged until the 15th of the month.
- From the 16th, diesel prices continued to rise in the back of the rise in crude oil prices in the global market.
- Oil companies hiked diesel prices in the third and fourth week relentlessly due to the increase in crude oil prices.
- The increase in oil prices was influenced by geopolitical tensions as the U.S. decided to pull out of the nuclear deal with Iran.
- This led to a shortage in supply of oil which prompted oil prices to increase significantly in the fourth week.
- By the end of the month, diesel prices rose to touch the highest for the month when a litre of the fuel was sold at Rs.68.31 on the last day of the month.
- The diesel price trend in Chandigarh in August inclined by 3.16% influenced by the rise in crude oil prices.
Diesel Price Trend in Chandigarh in September 2018
- The diesel price in Chandigarh on the 1st of September stood at Rs.68.31 per litre similar to the previous day price. Also, this was the lowest rate recorded in Chandigarh for the month.
- Prices continued to soar over the course of the first and second week in the back of high crude oil prices in the market.
- Due to geopolitical tensions, the crude oil price increased to touch a four-year high of $80 per barrel.
- Also, the rupee fell to record low of Rs.72 over the U.S. dollar which impacted the diesel price in the country as they continued to rise.
- Diesel prices during the third and fourth weeks rose to touch record levels due to the rise in oil prices.
- By the end of the month, diesel prices rose to touch the highest price of Rs.72.44 per litre on the 28th, which remained the same until the 30th of the month.
- Overall, diesel prices in Chandigarh in September grew significantly by 6.05% affected by the sharp rise in oil prices coupled with the steep depreciation of the Indian currency.
Quarterly Diesel Price Trend in Chandigarh Between April and June 2018
|Opening date price||Rs.62.69 per litre||Rs.64.01 per litre||Rs.67.24 per litre|
|Closing date price||Rs.64.01 per litre||Rs.67.28 per litre||Rs.65.43 per litre|
|Highest price||Rs.64.04 per litre recorded on 24th||Rs.67.34 per litre recorded on 29th||Rs.67.24 per litre recorded on 1st|
|Lowest price||Rs.62.69 per litre recorded on 1st||Rs.64.01 per litre recorded from 1st to 11th||Rs.65.43 per litre recorded from 27th to 30th|
Diesel Price Trend in Chandigarh in April 2018
- On 1 April 2018, the diesel price in Chandigarh stood at Rs.62.69 per litre - the lowest price recorded in the month.
- Similar to petrol prices in India, diesel prices are revised on a daily basis by State-run oil companies. Oil companies include Bharat Petroleum, Indian Oil and Hindustan Petroleum command nearly 90% of the market in the country.
- Fuel prices are updated based on the global crude oil rate and the currency exchange value of the US dollar over rupee.
- The diesel price trend in the first week in Chandigarh moved upwards and continued to rise in tandem with the crude oil rate.
- By mid-April 2018, diesel prices in Chandigarh increased by 50 paise per litre influenced by the marginal increase in oil prices.
- Along with a weaker rupee and the incline in crude oil rates, diesel prices posted the highest rate for the month at Rs.64.04 a litre recorded on 24 April 2018.
- Overall, diesel prices grew by 2.11% largely influenced by the rise in oil prices and a weaker rupee.
Diesel Price Trend in Chandigarh in May 2018
- Oil companies kept diesel prices unchanged until 11 May 2018 which stood at Rs.64.01 a litre, this was also the lowest diesel price for the month in Chandigarh.
- With geopolitical fears over a possible shortage in crude oil supply in the backdrop of potential sanctions on Iran after the US pulled out of the nuclear deal, the global crude rate started to incline sharply in the second week of the month.
- Crude oil prices continued to rise significantly in the international market which led to a sharp increase in diesel prices across the country including Chandigarh.
- Along with a weaker rupee and the crude oil rate increasing considerably, diesel prices in Chandigarh touched an all-time high of Rs.67.34 a litre on the 27th of the month.
- The diesel price trend in Chandigarh in May 2018 grew significantly by 5.11% rising by as much as Rs.3.27 a litre by the end of the month. The sharp increase in diesel prices is attributed to external factors of crude oil prices and the US dollar exchange rate over rupee.
Diesel Price Trend in Chandigarh in June 2018
- The diesel price on 1 June 2018 fell slightly to register at Rs.67.24 per litre, a reduction of 4 paise a litre. Incidentally, this was also the highest price of the fuel for the month.
- With crude oil prices on the rise, the members of the Organisation of Petroleum Exporting Countries (OPEC) and its ally Russia decided to meet on the 22nd to find ways to tackle the increase in oil rates in the global market.
- In Chandigarh, diesel prices in the first week of June remained steady as there weren’t any sharp fluctuations in the crude oil rate.
- By mid-June, diesel prices had fallen by Rs.1.35 a litre as the crude oil rate declined. The decline in crude oil rate was attributed to the decrease in fears over a possible shortage in the supply of oil in the international market.
- On 22nd, the OPEC and Russia agreed to increase the production of crude oil to reduce the impact of high crude oil prices.
- Diesel prices during the last week of the month continued to fall to post its lowest for the month at Rs.65.43 a litre registered on the 27th and continued until the end of the month.
- The diesel price trend in Chandigarh during the month reflected a downward trend of 2.70% largely due to the decline in oil prices.
Quarterly Diesel Price Trend In Chandigarh Between January 2018 And March 2018
|Opening date price||Rs.57.95 per litre||Rs.62.22 per litre||Rs.60.47 per litre|
|Closing date price||Rs.62.13 per litre||Rs.60.31 per litre||Rs.62.52 per litre|
|Highest price||Rs.62.13 per litre on 31st||Rs.62.32 per litre on 6th and 7th||Rs.62.52 per litre on 31st|
|Lowest price||Rs.57.95 per litre on 1st||Rs.60.30 per litre on 25th||Rs.60.47 per litre on 1st|
Diesel Price Trend In Chandigarh In January 2018
- The price for a litre of diesel in Chandigarh on 1st January stood at Rs.57.95 per litre. This is also the lowest diesel price recorded for the month.
- At the end of the first week, the diesel price rose by 53 paise influenced by the hike in the cost to purchase crude oil in the global market.
- During the second and third weeks, fuel prices continued to climb in tandem with the depreciation of the USD as well as due to the increase in the Indian Crude Oil Basket rate.
- The diesel price continued to rise registering its highest price at Rs.62.13 per litre on 31st January.
- In January 2018, diesel price in Chandigarh witnessed an upward trend of 7.21% backed by the rising cost of global crude oil price and the decline of the USD value over INR.
Diesel Price Trend In Chandigarh In February 2018
- On the first day of February, the diesel price in Chandigarh stood at Rs.62.22 per litre, a slight increase compared to the previous day’s price.
- With the demand for crude oil in the global market rising, the price of diesel continued to climb upwards, recording its highest price on 6th and 7th at Rs.62.32 per litre.
- While Chandigarh witnessed an upward trend in the first week, diesel prices fell in the second and the third week.
- The decline in diesel price in Chandigarh was influenced by factors such as the decline in the rate of crude oil in the global market and the depreciation of the USD.
- The price for a barrel of Indian Crude Oil Basket stood at $63.33 on 16th and it fell to $62.37 on 21st which led to the reduction in the diesel price in Chandigarh.
- The lowest diesel price for the month was recorded at Rs.60.30 per litre on 25th.
- Diesel price in Chandigarh witnessed a downward trend for the month depreciating at 3.07% largely influenced by a reduction in the crude oil price in the global market and the decline in the value of the USD over INR.
Diesel Price Trend In Chandigarh In March 2018
- Diesel price in Chandigarh on 1st March stood at Rs.60.47 per litre. This is also the lowest price for the month.
- By the end of the first week, the price for a litre of diesel rose by 1.14% compared to the opening day’s price.
- Diesel prices continued to remain steady in the second and the third weeks averaging Rs.61 per litre.
- In the last week of March, fuel prices began to rise in sync with the hike in the price per barrel of crude oil in the global market. The unrefined oil prices rose by 7.67% which led to the increase in the price of diesel.
- With the crude oil price rising, Chandigarh witnessed the highest price for diesel for the month at Rs.62.52 per litre on 31st March.
- Overall, diesel price in the month of March in Chandigarh noticed an upward trend of 3.39% mainly attributed to the rise in unrefined oil price in the global market.
How to Check Daily Diesel Prices in Chandigarh?
Since diesel prices are revised on a daily basis, oil companies have introduced several user-friendly methods to check the current diesel price in Chandigarh as well as other cities in India. The methods below assist consumers to get the latest fuel price in a city.
- Through Mobile Apps: With the advent of smartphones, oil companies have launched their respective mobile apps which offer the current diesel price in a city. Indian Oil customers can use the ‘Fuel@IOC’ app, Bharat Petroleum consumers can utilise the ‘SmartDrive’ app, while Hindustan Petroleum offers services via the ‘MY HPCL’ app.
Through SMS Service: For those who would like to take advantage of the SMS service, follow the process below to track the current diesel price in Chandigarh.
- Indian Oil: RSP
Dealer Code and send the SMS to 9224992249.
- Bharat Petroleum: RSP
Dealer Code and send the SMS to 9223112222.
- Hindustan Petroleum: HPPRICE
Dealer Code and send SMS to 9222201122.
- Indian Oil: RSP
- Oil Company’s Website: Consumers can visit the respective oil company’s website to get the current fuel price in a city. Fuel companies update their website with today’s diesel price in Chandigarh as well as other cities.
Calculation of Diesel Price in Chandigarh
To understand the calculation of the diesel price better, let’s take an example of the diesel price recorded on 3 June 2018 in Chandigarh.
|1||International Crude Oil Price + Freight Charges||$78.30 per barrel = Rs.32.98/Litre (considering $1=66.96 and 1 barrel oil = 159 litres)|
|2||Profit margin, transportation, refining, and other operational costs||Rs.8.10/Ltr|
|3||Excise Duty + Road Cess||Rs.15.33/Ltr|
|4||Commission to dealers||Rs.2.53/Ltr|
|5||Value Added Tax (VAT) + 25p Pollution Cess with surcharge||Rs.6.63/Ltr|
|Total||Retail selling price of diesel in Chandigarh||Rs.65.57/Ltr|
Factors which Influence the Diesel Price in Chandigarh
Now that we understand that diesel prices are revised on a daily basis, let’s review what factors determine the change in the fuel price. India imports more than 70% of crude oil from oil-producing countries, which makes it an essential and expensive commodity in India. The cost of crude oil forms the primary or base price of the diesel price in India.
- International Crude or Unrefined Oil Rate: Diesel is purchased in its crude form which is then refined and sold in the country. The global crude oil price is dynamic in nature as it changes due to the increase or decrease in production of crude oil. It’s also influenced by a shortage in supply, geopolitical tensions or due to higher demand.
- Currency Conversion Value: Trading of crude oil happens in US dollars, which is dynamic in nature. When the US dollar appreciates over the Indian Rupee, the cost to purchase crude oil increases and vice versa. Hence, the exchange rate of the US dollar is one of the factors which influences the daily revision in diesel prices in India.
- Oil-Companies’ Profit Margin & Dealer Commission: Crude or unrefined oil is shipped from oil-producing countries and is then refined and supplied to fuel stations in the country. Oil companies, therefore, include their profit margin and other operational costs to the diesel price before it’s sold at a fuel station. Also, dealer commission ( commission to fuel station owners) is added to the final selling price of diesel.
- Excise Duty & Value Added Tax (VAT) on Diesel: The sale of diesel attracts the Centre’s excise duty of Rs.15.33 per litre and the states’ local sales tax or VAT. Chandigarh charges VAT at 11.42% on a litre of diesel. The taxes on diesel form the biggest component in the final selling price. A revision in taxes leads to the change in diesel prices across cities in India.
Diesel Vs. Petrol Price in Chandigarh
Diesel prices in India are lower compared to petrol. This is due to the tax rate and other operational costs. While petrol is levied Rs.19.48 per litre as excise duty, diesel is charged Rs.15.33. Also, the VAT differs in petrol and diesel. Chandigarh charges 19.76% for a litre of petrol, while diesel attracts 11.42%.
GST on Diesel in Chandigarh:
The Goods and Service Tax (GST) is a single indirect tax charged on the supply of goods and services in India. However, petroleum products such as diesel and petrol are exempted from the GST. The issue is that the effective VAT on diesel varies from state to state. The effective VAT on diesel ranges from 6% to 29%, which means, every time the global crude oil price increases, the revenue to the State rises.
If diesel is brought under the ambit of GST, states charging lower VAT will witness a sharp incline in the diesel price. Besides, it would hurt the Centre’s tax collection and impact its plans to maintain a fiscal deficit.
Also Check Diesel Price in NearBy Cities of Chandigarh
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|Diesel Price In Ambala||Diesel Price In Delhi||Diesel Price In Karnal|
*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.