Diesel Price In Delhi
Delhi, the capital city of India, is a metro city and a union territory. With a population of more than 18 million, Delhi is the second most populous city in India.
Being a union territory, the city has its own legislature and an executive council of ministers governed by a chief minister. Both the Indian government and the local government of Delhi jointly administer the city.
Having the highest road density in India, Delhi is served by various means of transport including state-owned buses, Delhi Metro, taxis and auto rickshaws.
Private vehicles such as cars constitute majority of vehicles plying on Delhi roads. The city has the highest number of registered cars compared to other metro cities in India.
To curb the increasing pollution in the city, which according to WHO report has the worst air quality, the government of Delhi has been taking several measures.
Public buses and taxis were made to run on compressed natural gas (CNG) as use of petrol-run buses and taxis is banned in the city. Diesel vehicles, which are more than 10 years old are also banned in the city after observing high levels of emissions from diesel vehicles (one new diesel vehicle emits similar to 24 new petrol cars and 84 new CNG cars) which in turn are highly toxic carcinogenic in nature.
Further to reduce traffic congestion and pollution, the odd/even rule is being implemented, according to which cars with odd number plates will ply on odd dates and with even number plates on even dates.
|Also Check: Diesel Price in Mumbai|
Diesel Rate in Delhi in Last Year
As the use of diesel and diesel powered vehicles are being discouraged in the capital city, diesel consumption is apparently lesser compared to petrol.
However, diesel price in Delhi, though lesser compared to other metros, has been rising since the beginning of 2017, except for the first couple of months.
Started at Rs. 57.82 per litre in January 2017, the diesel price in Delhi reached Rs. 59.02/Lt by the middle of the month. It then dropped to Rs. 55.61 in April, but again hiked to Rs. 57.35/Lt in May.
In July, the diesel price in Delhi reached Rs. 53.33/Lt, the lowest price recorded in 2017 as of September. Since then, the prices have seen an upward trend increasing marginally every day. In just two months, the diesel price in Delhi was increased by Rs.5/Lt, with the average price in the month of September standing at Rs. 58.33/Lt.
Many factors contributed to the hike in the diesel prices in Delhi, including the increase in global crude oil prices, introduction of dynamic fuel pricing system across India, among others.
|Also Know: Petrol Price In Delhi|
Diesel Price Trend in Delhi between July and September 2018
|Opening date price||Rs.67.38 per litre||Rs.67.97 per litre||Rs.70.42 a litre|
|Closing date price||Rs.67.86 per litre||Rs.70.26 per litre||Rs.74.79 a litre|
|Highest price||Rs.68.51 per litre documented on the 16th||Rs.70.26 per litre documented on the 31st||Rs.74.79 a litre documented on the 30th|
|Lowest price||Rs.67.38 per litre documented on the 1st||Rs.67.97 per litre documented on the 1st||Rs.70.42 a litre documented on the 1st|
Diesel Rate Trend in July 2018 in Delhi
- Since India has deployed dynamic fuel pricing last year, all the three oil retailing enterprises are required to update diesel rate based on the INR/USD exchange ratio and the price of petroleum/crude oil.
- Among the metro cities, diesel prices in Delhi, which is the capital city of India, are lesser because of the sales tax.
- If the Centre cuts the excise duty, fuel rates will fall and vice versa; if the Delhi Government increases the VAT, diesel rates will increase and vice versa. The sales tax and the central tax were not reviewed in July.
- The local currency was seen continually depreciating versus the currency of the USA throughout the month of July 2018. Moreover, crude oil rates fell to $73.47 per barrel from $73.83 per barrel.
- In the end, the devalued currency caused a 0.71% hike in diesel rates in Delhi. The lowest and highest rates stood at Rs.67.38 per litre and Rs.68.51 per litre correspondingly.
- The Centre was facing the critics from the commoners and the politicians for making diesel expensive in Delhi in July. But it was not willing to diminish the central tax considering its impact on the financial health of the country.
Diesel Price Trend in Delhi in August 2018
- Fuel rate on 1 August 2018 soared by 11 paise per litre. It further mounted to Rs.68.06 a litre on the 3rd. Between 1 August and 7 August, diesel rate in Delhi ascended by 57 paise at the Indian Oil supply centers.
- Between 7 August and 14 August, the price was reported to be steady at Rs.68.54 per litre impacted by the overseas factors.
- The price was also steady at Rs.68.54 a litre on the 15th and jumped by 28 paise per litre on the 16th. On 17, 18 and 19 August 2018, the commodity was marketed at a price of Rs.68.90 a litre in the national capital.
- On the 24th, the price of a litre of diesel was valued at Rs.69.23, Rs.69.51 a litre on the 27th and Rs.69.80 a litre on the 29th.
- Because of the stability in diesel rates and some hikes in the month, the highest fuel rate was noted at Rs.70.26 a litre on the last day of the month.
- Just like July 2018, a growth rate of 3.36% was noticed this month because of the appreciation of the dollar versus the indigenous currency.
Diesel Rate Trend in September 2018 in Delhi
- HPCL, BPCL, IOCL and other oil companies continued to revalue the commodity as per the daily revision mechanism in September.
- Between 1 September and 7 September, the price increased by Rs.1.65 per litre. This was a massive rise. In the second and third weeks also, the price was increased by all the private and public sector OMCs.
- After the first week, the Congress Party leaders and the leaders of 21 regional political parties in India called the countrywide bandh. They urged the Modi-led government to cut the excise duty.
- The Bharat Bandh had no impact on the pricing of diesel in Delhi as the Centre denied to cut the excise duty.
- While the opening date price stood at Rs.70.42 a litre, the closing date price stood at Rs.74.79 a litre. We can here notice a 6.20% increase in diesel prices in Delhi in the last month of the quarter.
- The lowest and highest diesel rates were estimated to be Rs.67.38 a litre and Rs.74.79 a litre respectively between July 2018 and September 2018.
- The excise duty on a litre of diesel remained unrevised at Rs.15.33. The commodity was taxed by the State Government of Delhi at 17.28% throughout the quarter.
Quarterly Diesel Price Trend in Delhi Between April and June 2018
|Opening date price||Rs.64.58 a litre||Rs.65.93 a litre||Rs.69.24 a litre|
|Closing date price||Rs.65.93 a litre||Rs.69.29 a litre||Rs.67.38 a litre|
|Highest price||Rs.65.97 a litre registered on 24th||Rs.69.35 a litre registered on 29th||Rs.69.24 a litre registered on 1st|
|Lowest price||Rs.64.58 a litre registered on 1st||Rs.65.93 a litre registered on 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th and 11th||Rs.67.38 a litre registered on 27th, 28th, 29th and 30th|
Diesel Price Trend in Delhi in April 2018
- On 1 April 2018, the diesel price in Delhi stood at Rs.64.58 per litre, the lowest price of the month in the Nation’s capital.
- Diesel prices during the first and second week remained steady with slight variations due to the fluctuations in the global crude oil rate.
- By mid-April, diesel prices in Delhi grew by 51 paise per litre compared to the price recorded on the first day of the month.
- Diesel prices continued to rise in tandem with the increase in crude oil rates and by the end of the month, the diesel price had increased by Rs.1.35 per litre with diesel being sold at Rs.65.93 on the last day of the month. However, the highest diesel price recorded in the month stood at Rs.65.97 on 24 April 2018.
- During the month, diesel prices reflected an upward trend of 2.10% largely due to the rise in the crude oil rate.
Diesel Price Trend in Delhi in May 2018
- The diesel price on 1 May 2018 in Delhi remained same as the previous day with the fuel sold at Rs.65.93 per litre. State-run oil companies did not revise the diesel price in Delhi and other states till the 11th of the month.
- The lowest diesel price in May 2018 in Delhi stood at Rs.65.93 per litre which remained unchanged till the 11th of the month.
- Post 11th, oil companies started to revise the diesel price in tandem with the global crude oil rate.
- Diesel prices continued to increase in the third and fourth week with crude oil rate standing at $80 per barrel.
- The highest diesel price in Delhi recorded during the month was on 29th when diesel price hit an all-time high in Delhi as well as other states in the country.
- Diesel prices are revised daily by oil companies when the preceding day’s crude oil rate and the currency exchange value is considered before fixing the Retail Selling Price (RSP) of diesel.
- The month of May 2018 witnesses a significant rise in fuel prices with an upward trend of 5.10% mainly due to the rise in crude oil prices.
- The rise in crude oil prices is attributed to the geopolitical tensions due to concerns of a potential shortage in the supply of crude oil in the global market. With the US administration pulling out of the nuclear deal with Iran, there were apprehensions that Iran could face sanctions.
Diesel Price Trend in Delhi in June 2018
- With the geopolitical tensions declining, crude oil rates started to fall during the first week of the month.
- On 1 June 2018, the diesel price in Delhi stood at Rs.69.24 per litre with a slight decrease compared to the previous day. This price was also the highest for the month in Delhi.
- With crude oil prices reaching peak levels, the Organisation of Petroleum Exporting Countries (OPEC) and its key allies including Russia decided to meet on 22 June 2018 to address the concern of a rising fuel price across the globe.
- Fuel prices including that of diesel began declining but not significantly. However, during the course of the third and fourth week, diesel prices fell considerably.
- The OPEC and its key ally Russia agreed to moderately increase the output which led to the decline in diesel prices across the globe as well as in Delhi.
- During the last four days, diesel prices fell to its lowest for the month which stood at Rs.67.38 per litre.
- Overall, diesel prices in June 2018 in Delhi reflected a downward trend at 2.67% largely due to the fall in crude oil rates influenced by the increase in output which was assured by the OPEC and Russia.
Diesel Price in Delhi Compared to other Metro Cities
The other metro cities of India including Mumbai, Kolkata, Chennai, Bengaluru and Hyderabad, charge a higher diesel price than Delhi, which means one can get diesel at the lowest price in Delhi compared to other metro cities.
The average price of diesel in Delhi in the month of September 2017 was Rs. 58.33/Lt which was between Rs. 61-64/Lt in all other metro cities, except for Bengaluru, where the average diesel price in September is Rs. 58.44/Lt.
Low diesel price in Delhi is possible as the state government levies less value added tax (VAT) on diesel compared to other metro cities.
How Often Diesel Prices are Revised in Delhi?
Diesel prices in Delhi are revised on a daily basis rather than fortnightly basis which used to happen before 16 June 2017.
Daily price revision is a new pricing system adopted under dynamic fuel pricing which is being implemented at all the petrol pumps across India.
As per the new system, diesel prices in Delhi will be revised every day by 6 a.m. and the same price would be applicable till 6 a.m., the next morning.
Dynamic fuel pricing or daily revision was introduced to bring transparency in diesel pricing and also to pass even the minute profit in diesel price to the end customers.
Trend in Diesel Price in Delhi between January and March 2018
|Opening date price||Rs.59.76 a litre||Rs.64.09 a litre||Rs.62.30 a litre|
|Closing date price||Rs.64.00 a litre||Rs.62.13 a litre||Rs.64.40 a litre|
|Highest price||Rs.64.00 a litre recorded on 31||Rs.64.20 a litre recorded on 6 and 7||Rs.64.40 a litre recorded on 31|
|Lowest price||Rs.59.76 a litre recorded on 1||Rs.62.12 a litre recorded on 25||Rs.63.30 a litre recorded on 1|
Trend in Diesel Rate in Delhi in January 2018
- Diesel per litre was valued at Rs.59.96 at Indian Oil Company in Delhi on 1. Of course, there is a slight difference in the offer made by HPCL and BPCL owing to the transportation overheads.
- The opening date price also turned out to be the lowest offer for the month since the fuel rate was on an upward trend until 31. In Delhi, the VAT on diesel was levied at 17.28%, 24.86% in Mumbai, 17.59% in Kolkata, and 24% in Chennai as of 1 April 2018.
- As a result, the fuel price is priced lower in Delhi compared to other metro cities. The price encompasses the central tax of Rs.15.33, the overheads of the OMCs, pollution cess, and the commission charged by fuel suppliers.
- The indigenous tax slabs on diesel were not modified this month. Therefore, a 7.09% price up must only be accredited the cost of crude oil, which declined 7.65%; and the USD/INR exchange rate, which decreased to Rs.63.56.
- The first 7 days produced a 0.87% climb in the diesel price whereas the first half reported a 2.37% rise. At the end of the third week, the price offer increased to Rs.62.83 a litre further.
- Finally, the month closed with the highest price of Rs.64 a litre, which was up 1.86% compared to the previous week’s offer.
Trend in Diesel Prices in Delhi in February 2018
- Indian Oil, BPCL and HPCL unveiled a price of Rs.64.09 a litre under dynamic fuel pricing on 01. Neither a cut in the excise duty nor a drop in other taxes nor the imposition of a further tax impacted the first-day offer.
- The demand for unrefined oil remained unaffected in the first week, and thus, the fuel costs enhanced to Rs.64.20 per litre on 7. This was also the highest price for February.
- Conversely, the fuel started losing its value after the week 1 in tandem with the conversion rate and the crude oil value in overseas markets.
- So, on 14, the diesel rate further lessened to Rs.63.48 a litre, Rs.62.28 a litre on 21, and Rs.62.13 a litre (lowest price for the month) on 28.
- The USD/INR conversion rate was Rs.63.95 on 1 and further increased to Rs.65.22 on 31 at a growth rate of 1.98%.
- Likewise, in January, the average cost of crude oil stood at $67.06 a barrel, which further reduced to $63.54 a barrel in February.
- A reasonable plunge in the cost price of crude oil in transnational markets was triggered by the lessened demand for the commodity.
Trend in Diesel Price in Delhi in March 2018
- The diesel rate was up 0.27% to Rs.62.30 a litre as on the opening date. It was not scheduled to withdraw the excise duty or the VAT this month.
- Unlike February, the fuel rate was not lowered. For a few days, it was stable yet. The price stood at Rs.63.01 a litre on 6 and 7, and Rs.62.90 a litre on 13 and 14 correspondingly.
- After the week 2, crude oil commenced accruing demand, and thus, the market price of crude oil rebounded to $62.80 per barrel on 14 and $65.97 a barrel on 29.
- Therefore, the diesel rate in Delhi began climbing. In the first week 1, it was up 1.13%, 0.17% in the second week, 0.04% in the week 3, and 1.33% in the last week.
- For the quarter, the highest price stood at Rs.64.40 a litre in March 2018 whereas the lowest price at Rs.59.76 a litre in January 2018.
- This quarter produced a 7.76% ramble caused by a decent amount of increase in the crude oil’s price and a devalued currency of the US. No other overseas price influencers should be accounted for.
Factors Affecting Diesel Rate in Delhi
Just like in other India cities, diesel price in Diesel is composed of various components including product price in the international market, freight charges, trade parity landing cost of diesel composed based on daily pricing methodology, cost of marketing and transportation, fuel company’s and oil dealer’s profit margin/commission, excise duty levied by central government and VAT levied by state government.
Major components that show significant impact on the diesel price in Delhi are the international crude oil price, US dollar to Indian rupee exchange rate (crude oil is usually bought in dollars), state and central taxes levied on diesel. These components are likely to get fluctuated leading to fluctuating diesel prices.
However, when diesel price across the other Indian cities are compared, most of the above mentioned factors remain the same except for the VAT levied by the respective state governments. As VAT varies from one state to another, diesel price in each city varies with respect to the state it belongs to.
Almost all the cities in a particular state will have similar diesel price with slight variation caused due to change in dealer’s commission, transportation charges and other fee, which vary from city to city, oil company to company and pump to pump.
State Taxes and Diesel Price in Delhi
Delhi being a union territory, the government of Delhi is the governing body of the city. The only tax levied by the government on diesel is VAT, which is currently at 16.75% per litre of diesel, way lesser than the tax levied by other state governments where the other metro cities are located.
Mumbai government levies 28.39% VAT on a litre of diesel, the highest among all the metro cities with second lowest tax levied by West Bengal at 18.46%/Lt.
Effect of GST on Delhi Diesel Price
GST or the goods and services tax is a new tax system introduced in India in July 2017. Under the new tax regime, a unified tax will be levied on all the goods and services across all the Indian states abolishing all other taxes charged by state and central governments individually. This makes the prices of various goods and services almost similar across the country and also leads to reduction in tax rates benefiting the end consumer.
GST is currently levied in four different tax brackets – 5%, 12%, 18% and 28%. Based on the product category, any one of the tax percentage is levied on the goods/service.
Considering the high taxation involved in the fuel pricing, petroleum products such as petrol, diesel, natural gas and jet fuel are kept outside GST, i.e., they are still being charged as per the previous tax structure. Central and state governments charge different taxes on these products.
Hence, the effect of GST on diesel price in Delhi is currently zero, as the commodity is not taxed under GST.
If diesel is brought under GST, its price is likely to come down as the highest tax rate charged under GST is 28%, whereas the current state and central taxes together on diesel in Delhi are more than 35%.
Diesel Rate Vs. Petrol Rate in Delhi
Diesel price, just like in any other Indian metro/city, is lesser than petrol price in Delhi. In the month of September 2017, the average difference between the diesel and the petrol price in Delhi is Rs. 11.85/Lt, with the average diesel price at Rs. 58.33/Lt and petrol at Rs. 70.18/Lt in the same month.
The difference in diesel and petrol prices is mainly due to the variation in the taxes levied by the state and central governments.
The excise duty charged on diesel by Delhi government is Rs. 15.33/Lt, while it is Rs. 4.15/Lt higher on petrol. Similarly, VAT on diesel is 10.25% lesser than on petrol, which has a VAT of 27% in Delhi. The taxes together bring Rs.10-11/Lt difference between the prices of diesel and petrol in Delhi.
Other factors that contribute to marginal price variation between the two fuels are the dealer’s commission, profit margin and freight charges.
Also Check Diesel Price in NearBy Cities of Delhi
|Diesel Price In Chandigarh||Diesel Price In Indore||Diesel Price In Jaipur|
|Diesel Price In Pune||Diesel Price In Ahmedabad||Diesel Price In Srinagar|
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