Diesel Price In Coimbatore Today

  • Today's Diesel Price ( 16 Sep 2019 )
    ₹ 69.5
    Current Diesel Price Per Liter
    Compare Diesel Price in Coimbatore (Today & Yesterday)
    Today
    (16 Sep 2019)
    Yesterday
    (15 Sep 2019)
    Rate Change
    Diesel ( / litre) ₹ 69.5 ₹ 69.5 ₹ 0 ↑
    Diesel Price in Coimbatore - Last 10 Days Data
    Date Diesel ( / litre)
    16 Sep 2019 ₹ 69.5
    15 Sep 2019 ₹ 69.5
    14 Sep 2019 ₹ 69.43
    13 Sep 2019 ₹ 69.34
    12 Sep 2019 ₹ 69.24
    11 Sep 2019 ₹ 69.19
    10 Sep 2019 ₹ 69.19
    09 Sep 2019 ₹ 69.13
    08 Sep 2019 ₹ 69.13
    07 Sep 2019 ₹ 69.13

    Diesel Rate Trend

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    Diesel Price In Coimbatore

    The diesel price in Coimbatore has been seeing ups and lows based on the international fuel trends and of course, the recently implemented mechanism of “dynamic fuel pricing.” To make you comprehend better, this article gives a better insight of diesel pricing and the various factors affecting it, especially in a region like Coimbatore.

    But before that here is a quick introduction to Coimbatore.

    Coimbatore is not only an important city in the state of Tamil Nadu but also the Manchester of southern India. It is one of the popular cities that features a major business and commercial hub. In fact, it is a high revenue yielding region and is way ahead of Chennai. This makes Coimbatore one of the fastest developing metropolitan cities in India.

    Coimbatore features many trade associations such as COINDIA, COJEWEL, and CODISSIA (Coimbatore District Small Industries Association), which represent many industries within the city. It also boasts a 160,000 sq.ft fair ground for trade, which was built back in the year 1999 and was named as COINTEC because it hosts Small Industries Exhibitions.

    Also Know: Diesel Price in Tamil Nadu

    How Are Diesel Rates Decided In India?

    Let’s assume that the diesel is imported by Indian Oil Corporation (IOC) from an oil refinery based in Saudi Arabia. Now, the price at which the diesel is bought is known as the “FOB (Free On Board) Price.” In short, this is exactly the amount which IOC pays to the firm and have it delivered to any closest international port.

    The diesel will then be sent through ships from there to the mentioned Indian port. This requires a charge to be paid to the transporter and is known as the “Ocean Freight Charge.” This Ocean Freight Charge is added to the FOB charge to get a new or revised charge, which is called the “C&F Charge – Cost and Freight Charge.”

    Therefore, C&F Cost = FOB Charge + Ocean Freight Charge

    When the diesel reaches the respective Indian port, an “import charge” is imposed, which comprises of three charge categories:

    • Port Dues: The fee paid for utilizing the port facilities.
    • Insurance Charges: The premium that is paid to the insurance company to cover for the crude.
    • Ocean Losses: The fee paid to recompense for the lost oil at the time of transportation.

    The Indian Government imposes a tax on the crude oil that has just been imported, which is officially termed as “Customs Duty.” This is usually the 2.5% of the C&F price. Say, for example, if IOC buys crude oil at a C&F cost of Rs.100 for a liter, then the tax will be Rs.2.5 for a liter.

    When the customs duty, import charges, and C&F price are added, the resultant is a crucial term known as IPP (Import Parity Price).

    Therefore, IPP = C&F Cost + Custom Duty + Import Charge

    Another term, which is worth mentioning is none other than EPP (Export Parity Price). It is a theoretical term that is equivalent to the FOB cost. Talking about India, the average of EPP and IPP is used – together which is known as TPP (Trade Parity Price). The formula to calculate TPP is:

    TPP = IPP × 0.8 + EPP × 0.2

    Once the refinery processes the crude into diesel/petrol/kerosene, a price has been calculated, which is known as RTP (Refinery Transfer Price). This is the price that OMCs (Oil Marketing Companies) pay to the refinery while purchasing the diesel if it is equivalent to TPP. In short, RTP = TTP.

    The refined petroleum product is then transported via road or rail to various retail outlets and for this, an Inland Freight Charge is paid. On the other hand, the OMCs spend separately for marketing and when this is included, TDP (Total Desired Price) is achieved.

    Therefore, TDP = Inland Freight Charge + RTP + Marketing Cost

    However, the Oil Marketing Companies sell their diesel to retail outlets for a price that is lesser than TDP, which is otherwise termed as Deport Price.

    When the diesel reaches the retail outlet, the Central Government then imposes another “excise duty” and the State Government imposes VAT (Value Added Tax) for a profit margin (fixed) per liter. Finally, the retail price of diesel per liter is calculated.

    Factors That Affect Diesel Price In Coimbatore

    Diesel rates are affected by multiple factors and not just one. These are as follows:

    1. The Cost Of Crude Oil

    A vital factor that determines the diesel rates in Indian market is the price of the international crude oil. On the other hand, increased international demands, low production levels, and political disruptions in crude oil manufacturing countries are few other reasons that influence the fuel price greatly.

    2. Increase In The Demand

    Faster economic development in India and other parts of Asia are important reasons for the demand to rise drastically. This also results in a price hike in the fuel.

    3. Imbalance In The Demand-Supply Chain

    Most Indian oil firms face the issue of meeting the diesel requirements when there is an increased need and this is usually due to a shortage in the production as well as supply from the respective refineries.

    4. Tax

    The tax imposed on petroleum products vary from one country to the other based on the taxes imposed by the local government. Talking about India in specific, when the Indian Government increases the tax on fuels, the Oil Marketing Companies (OMCs) have no other alternative than to incline.

    What Is Dynamic Fuel Pricing?

    Before the concept of Dynamic Fuel Pricing came into the picture, the state-run oil marketing companies used to update the new fuel prices at the first and sixteenth day of every month. In short, it was updated fortnightly and thus, it was called “fortnight fuel pricing system.”

    This had a lot of drawbacks and sometimes, there were heavy losses too. To cope up with it and to bring in transparency in the system, the concept of “dynamic fuel pricing” was introduced and implemented on June 16, 2017.

    This mechanism is something that most developed countries follow and when it was introduced in India, it was truly a big hype. According to the dynamic mechanism, the fuel prices are updated every morning at 6:00 a.m. at IST (Indian Standard Time).

    Is The Mechanism Of Dynamic Fuel Pricing Implemented In Coimbatore?

    Yes. In fact, every region in India now follows the system of dynamic fuel pricing.

    Is GST Included For Diesel Rates In Coimbatore?

    No. As of now, GST is not included for diesel in India because that not only requires time but also approval from both Central and State Government.

    Also Check Diesel Price in NearBy Cities of Coimbatore

    *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.

    News About Diesel Price In Coimbatore Today

    • Union Budget FY19-20: Strong vigilance and short-term liquidity for NBFCs

      Credit ratings agency India Ratings and Research has stated that the Union Budget for 2019-20 is expected to be bring strong vigilance and short-term liquidity for non-bank finance companies (NBFCs) as well as housing finance companies (HFCs). The Union Budget was announced earlier this month. The budget has paved the way for the regulator to undertake corporate restructuring of NBFCs and HFCs in public interest.

      India Ratings credit rating agency further added that the proposed framework will help in tackling the contagion risk by the regulator especially for extreme cases. It said that in addition to the long-term regulatory empowerment of the RBI, other budgetary proposals will also ensure short-term liquidity. The provision of a partial credit guarantees by the government to cover the first loss of up to 10% on the pool of assets (up to Rs.1 trillion) purchased from NBFCs by public sector banks for a period of six months could help infuse liquidity in NBFCs. Additional liquidity has been made available to NBFCs and HFCs by allowing one per cent of net demand and time liability to be included in the liquidity coverage ratio computation to the extent of incremental outstanding credit to NBFCs and HFCs.

      19 July 2019

    • Fuel Prices Remain Unchanged Today

      Prices of petrol and diesel remain unchanged today across major metro cities of the country by state-controlled Oil Marketing Companies (OMCs). In Delhi, petrol is available at Rs.73.35 per litre while diesel costs Rs.66.24 per litre, no revision compared to yesterday’s price. It may be noted that petrol prices were hiked by 8 to 12 paise per litre and diesel rates were kept unchanged yesterday. Fuel prices in Delhi are lower compared to other metros and some state capitals due to lower local taxes. In Mumbai, petrol is being sold at Rs.78.96 per litre and diesel costs Rs.69.43 per litre. Likewise, in Chennai, petrol is being retailed at Rs.76.18 per litre while diesel costs Rs.69.96 a litre. In Kolkata, petrol costs Rs.75.77 a litre while diesel is available at Rs.68.31 a litre. In Noida and Gurugram, petrol is being sold at Rs.72.58 and Rs.73.11 a litre, respectively. Diesel in these cities costs Rs.65.34 and Rs.65.43 a litre, respectively. It may be noted that petrol prices have increased by Rs.2.91 a litre and diesel by Rs.1.97 a litre.

      Fuel prices in India are proportional international crude oil prices. On Friday, crude oil rates in the oil market was up by 1% after an Iranian drone was shot down by the US navy escalating tensions in the Middle East. International benchmark Brent Crude futures was up by 32 cents or 1.3% trading at $62.75 per barrel compared to its last close.

      19 July 2019

    • Petrol Prices Kept Unchanged across the Metro Cities

      The rates of petrol across the major cities of the country were kept unchanged on Wednesday. This comes after two successive days of hike following the conclusion of Lok Sabha polls in the country. As of Wednesday, every litre of petrol in the national capital was retailed for Rs.71.17. In Mumbai, the financial capital of the country consumers were required to pay Rs.76.78 per litre. In the other two metropolitan cities of the country i.e., Kolkata and Chennai, the rates charged by Oil Marketing Companies (OMCs) for one litre of petrol were Rs.73.24 and Rs.73.87 respectively.

      In the international oil market, the rates of crude oil fell by 0.55%. The drop was recorded after the futures of Brent crude surged to $73 per barrel. It needs to be mentioned here that petrol prices have been lowered by Rs.1.91 – Rs.2.03 per litre in the four metropolitan cities of the country this month.

      23 May 2019

    • Declining crude oil prices hit the cotton value chain

      The entire cotton value chain has been hit due to declining crude oil prices and sluggish demand. This has left stakeholders complaining about cash crunch and other issues. With money locked up in inventories and yarn manufacturers being prompted to cut prices, the monthly yarn price declared at Tirupur has been cut by Rs.10 per kilo. It needs to be mentioned here that the export demand has reduced as Indian cotton has turned more expensive. As per traders, only mills are buying the cotton depending on their requirements.   

      Nishant Asher, the partner of RS Asher firm said that with China not buying much yarn there is overcapacity in the market. This has resulted in the entire payment cycle being affected. G Radhakrishnan, the president of Coimbatore Cotton Association stated that flow of cash is the problem all over the cycle and the demand for cotton is less all around the world. With crude oil prices falling, polyester has become more attractive. This fact has also added to the sluggishness witnessed in the cotton cycle and the impact it has had on the cotton prices. 

      It is noteworthy to mention here that given the current scenario, the Cotton Association of India (CAI) has revised the estimate of the cotton crop for the 2018-19 season to 33.5 million bales from 3.40 million bales. The current estimate is 1.54 per cent lower than the previous one. 

      9 January 2019

    • Diesel Costs Rs.64.82 in the National Capital

      The decline in the prices of diesel continued for the sixth consecutive day as international crude oil prices softened. On Tuesday, every litre of diesel in the national capital cost Rs.64.82 while in the financial capital of the country i.e., Mumbai the rates charged were Rs.67.66. As per figures made available on the Indian Oil Corporation website, the price of diesel in Mumbai fell by Rs.1.15 per litre. In the other two metro cities of the country i.e., Chennai and Kolkata, the rates charged for every litre of diesel were Rs.68.41 and Rs.66.40 respectively. It needs to be mentioned here that the global crude index of Brent ended around 51 US dollars per barrel on Monday. The decline in the rates of Brent crude is quite staggering as it was 86 US dollars per barrel in early October.

      18 December 2018

    • Fuel Prices At All-Time High Across the Country

      Fuel prices rose to an all-time high across the country on Monday. Petrol price crosses the psychological mark of Rs.90 as a fall in the exchange rate of rupee coupled with the rise in the global crude oil prices pushed prices across the country to record highs. While petrol prices were increased by 11 paise per litre, diesel was hiked by 5 paise. The increase pushed petrol prices in Delhi to Rs.82.72 per litre and diesel to Rs.74.02 in the national capital. In Mumbai, petrol crossed Rs.90 mark for the first time. Petrol costs Rs.90.08 per litre at Indian Oil Corporation (IOC), Rs.90.14 in Bharat Petroleum Corporation Limited (BPCL) and Rs.90.17 in Hindustan Petroleum Corporation Limited (BPCL). India imports more than 80% of crude oil and inclining oil prices have sent petrol and diesel prices to all-time highs. This has resulted in inflated domestic transport fuel costs in a robust demand environment. Brent Crude, the Benchmark for the half the world’s oil, rose to $80 per barrel from $71 in the last five weeks. The rupee fell by 5-6% during the same period which has led to high import bills of crude oil to the country.

      26 September 2018

    • Diesel Prices Remain Unchanged in the Country

      The price of diesel in the four metro cities of the country remained unchanged as of Saturday. While Oil Marketing Companies (OMCs) increased the petrol prices, they refrained from hiking the diesel prices. A litre of diesel can be purchased for Rs.68.86 in Delhi, Rs.73.10 in Mumbai, Rs.71.70 in Kolkata and Rs.72.74 in Chennai. The price of diesel in the national capital was low as compared to other metro cities because the VAT charged on diesel is only 17.24%. It needs to be mentioned that since the start of the year, petrol and diesel prices have seen a lot of fluctuations and the price for every litre of diesel had touched an all-time high of Rs.69.30. The fluctuations in the prices of diesel can also be accounted to the fact that since June 2017, state-owned oil companies had adopted the dynamic fuel pricing scheme under which fuel prices are revised on a daily basis. The scheme was adopted to ensure that the smallest gain achieved by the oil companies could be transferred to the consumers and dealers alike.

      23 August 2018

    • Crude Oil to Become Costlier

      Crude oil has continued to gain the price this week. During the week, the price action for ICE Brent August has experienced a crusade from a low of $73.74 per barrel to high of $78.42 per barrel. Likewise, NYMEX Crude August futures have seen a crusade to a high of $74.03 per barrel from a low of $67.72 per barrel for this week. Crude oil prices started increasing since the capitalists prepared for an additional 1 million barrels per day in order to hit markets after OPEC has accepted to increase the production since the markets in the United States of America dropped on business war qualms.

      3 July 2018

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