Diesel Price in Chhattisgarh
Diesel is an important commodity used worldwide for many purposes. It contributes heavily to the economical development of a developing country like India. All Indian states have an equal amount of demand for diesel. It is worth noticing that India has no adequate resources to produce diesel and petrol indigenously. The country borrows crude oil in a big scale. Because of the increased crude oil costs, diesel prices in all state capitals have gone out of the reach of a commoner. Even diesel buyers from the city of Chhattisgarh have expressed concerns over this issue. When revised on 30 June 2018, diesel price in Raipur, the capital city of Chhattisgarh, stood at Rs.72.75 a litre.
Diesel Price Trend in Chhattisgarh
Here, we understand the diesel price trend in Chhattisgarh during the first six months of 2018. Diesel prices offered at Hindustan Petroleum, Indian Oil and Bharat Petroleum may differ minutely within various cities of the state. On 26 June 2018, diesel prices in Raipur and Bilaspur stood at Rs.72.75 a litre and Rs.72.69 a litre respectively. There is a difference of 6 paise per litre because of brands. In lieu of considering multiple cities, to make a comparative study, diesel rates in Raipur have been taken into account.
In January 2018, in Raipur, fuel rates were increased by 6.65%. In the following month, they were slashed by 3.13%. The highest rate for the first two months was declared at Rs.69.37 a litre on 6 February 2018. Due to a slightly devalued USD, diesel rates were increased by 3.31% in March 2018 and by 2.04% in April 2018. On 24 April 2018, the highest diesel rate was registered at Rs.71.20 a litre. Fuel rates were up 4.75% to Rs.74.75 a litre in May 2018 and were down 2.68% to Rs.72.75 a litre in the month of June 2018. Between January 2018 and June 2018, Indian fuel companies have increased diesel price in Chhattisgarh from Rs.64.53 a litre to Rs.72.75 a litre.
Each industry has its own participants. In India, the fuel industry is one of the largest industries with several participants. Industry participants are the parties engaged in a particular industry vertical. The parties involved in the Indian fuel sector include Oil Marketing Companies (OMCs), fuel buyers, fuel dealers, etc. OMCs, also called as fuel companies, are the parties liable for producing and marketing fuels such as petrol and diesel. In India, there are three state-run OMCs, which include Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL) and Indian Oil (IOCL). These OMCs function through a wide network of fuel dealers. Like other states, diesel is distributed through a network of fuel dealers in Chhattisgarh as well.
Revision of Diesel Price in Chhattisgarh
You buy many products in your day-to-day life. Marketers will revise the price of the products they deal with. For example, mobile companies keep revising the prices of the mobiles they design and market. Likewise, the price of diesel per litre has to be fixed and revised by OMCs. India has introduced a concept called dynamic fuel pricing in 2017. Dynamic fuel pricing is a mechanism deployed to reset petrol and diesel rates in all parts of the country. According to this mechanism, IOCL, BPCL and HPCL will announce a revised diesel rate on a daily basis. The revised fuel rate will be exhibited at each fuel station in Chhattisgarh.
Can I Trace the Latest Diesel Price in Chhattisgarh?
Tracing the latest fuel price in Chhattisgarh is no more a complicated task. Despite the amount of utilisation, diesel buyers have now been asked to make use of uniquely designed mobile applications in order to obtain both petrol and diesel rates in the cities they are residing in. SmartDrive, a mobile application introduced by BCPL, can be used to trace BPCL diesel rates. IOCL diesel buyers may consider using Fuel@IOC for the same purpose. Similarly, if you download My HPCL, a mobile application customised by HPCL, you shall be able to get today’s diesel rate offered at HPCL fuel stations.
Computation of Diesel Price in Chhattisgarh
Diesel rates in Chhattisgarh are different from other states because of Value-added Tax (VAT), which is a common cost aspect. Usually, to determine the RSP of something, marketers will take into account the overall expenses spent and the profit margin. OMCs will follow the same equation to compute the RSP of diesel, which is actually charged to customers. The RSP, Retail Selling Price, of diesel per litre in the state includes various cost aspects such as VAT, crude oil costs, OMC expenses, excise duty, commission for fuel distributors, pollution cess and excise duty. As on 3 June 2018, the price structure of diesel per litre in Chhattisgarh stood as follows:
- Crude oil cost per litre – Rs.32.98
- Entry taxes, landing overheads, administration expenses and RTP – Rs.5.23 a litre
- Carriage costs, freight overheads and profit margin of OMCs – Rs.2.87 a litre
- Excise duty per litre – Rs.15.33
- Commission for fuel dealers – Rs.2.53 a litre
- Pollution cess – 25 paise per litre
- VAT on diesel per litre – 25.81%
Domestic and Overseas Factors Impacting Fuel Rates in Chhattisgarh
This is a crucial part of this page. Here, we understand the impact of both domestic and overseas factors on the pricing of diesel. Domestic factors include excise duty, which is collected by the Central Government; and VAT, which is charged by states. Excise duty remains unchanged whereas VAT varies among Indian states. In June 2018, excise duty was Rs.15.33 a litre. VAT was charged at 25.81% by the State Government of Chhattisgarh. It was imposed at 18.28% in Bihar and 17.28% in Delhi. Compared to Chhattisgarh and Bihar, VAT in Delhi is lower. Therefore, diesel rates in Chhattisgarh should exceed diesel rates in Delhi.
Overseas influencers include the exchange rate, production cuts, seasonal fluctuations, demand and supply, crude oil rates, etc. The exchange rate of the Indian currency against the currency of the USA is considered since crude oil is sold by OPEC and other countries. When the INR starts depreciating against the USD, fuel enterprises will decrease fuel rates in the domestic market and vice versa. The extraction and distribution of unrefined oil is likely to be affected by a bad weather. Ultimately, petrol and diesel prices in Chhattisgarh and other Indian states get impacted.
Whether or not GST Impacts Diesel Price in Chhattisgarh
GST, which stands for Goods and Services Tax, is a common term today. It’s a unified, streamlined tax platform introduced by the Indian Government last year. Consumers across the country are taxed under GST. Since diesel does not fall under the GST framework, the pricing of diesel remains unaffected by the current tax system. Why diesel has not been covered? The inclusion of diesel under GST will reduce diesel price in Chhattisgarh. Consumers will be happy to accept this proposal, but neither the Central Government nor states are willing to lose the major revenue source. Recently, Oil Minister said “The Government is willing to lessen diesel and petrol rates through a long-run solution.” As per market observers, on petroleum products, GST may be levied by the government in addition to VAT.
Also Check Diesel Price in NearBy Cities of Chhattisgarh
*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.