Diesel Price in Faridabad
Faridabad is located in the state of Haryana. Situated in the National Capital Region (NCR) Faridabad has a close proximity to the National Capital of New Delhi. The city is one of the fastest growing cities in country. Recently, Faridabad was added to the list of Smart Cities Mission to developed as a modern city with an urban infrastructure to support the growing population.
With several manufacturing industries setting up their factories, the transportation system is well supported by state-owned buses. Other popular forms of transport are taxis, auto rickshaws as well as private vehicles.
With the increase in vehicular density, diesel is extensively used in Faridabad. Diesel prices in Faridabad are dynamic in nature and are revised on a daily basis. The revision in the diesel price in Faridabad is in tandem with several factors which are external and internal in characteristic.
Factors which Influence the Diesel Price in Faridabad
Diesel is purchased in its crude form by state-owned oil companies from oil-producing countries. India imports more than 70% of crude oil which makes it an expensive commodity in the country. While external factors include the global crude oil prices and the currency exchange rate, internal factors include profit margin levied by oil companies, taxes imposed by the Central and State government, and dealer’s commission.
- External Factors: State-run fuel companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum import crude oil and its price is dynamic in nature as it’s influenced by production output, seasonal variations, shortage in supply or due to higher demand. These factors impact the crude oil price in the international market and eventually the diesel price in Faridabad. If there’s an instance of lower output, the crude oil price increases accordingly or vice versa. The other external factor is the currency exchange rate. Trading of crude oil typically happens in US dollars. With the fluctuations in the US dollar value, the cost to purchase a barrel of crude oil is affected. If the US dollar appreciates over the Indian Rupee, the cost to buy crude oil increases, likewise, if the dollar rate depreciates, then crude oil prices decrease.
- Internal Factors: Tax on diesel is the biggest component of the diesel price. While the central government levies excise duty, the respective state government imposes the local sales tax or Value Added Tax (VAT). Currently, diesel attracts excise duty of Rs.15.33 per litre and VAT charged by the state of Haryana is 17.22%. Fuel companies purchase the crude oil, which is then refined and supplied to fuel stations across the country. A profit margin is included in the Retail Selling Price (RSP) by fuel companies before its sold to the consumer. Additionally, fuel companies add the commission to dealers (petrol pump owners) to the final selling price of diesel in the city.
|Also Know: Petrol Price In Faridabad|
Why are Diesel Prices in Faridabad Revised Daily?
Prior to 16 June 2017, diesel prices in India was revised on a fortnightly basis. Fuel companies included the average price of crude oil of the preceding fortnight as well as the currency exchange rate to the final selling price of diesel. However, under this method oil companies were unable to pass on a sudden incline or decline in crude oil prices to the customer as they had to wait a fortnight to revise the oil price. This led to losses incurred by the oil company as well as the customer.
Since the fortnightly method led to losses, the ‘Dynamic Fuel Pricing’ mechanism was introduced. Under this method, diesel prices are revised on a daily basis. Fuel companies include the previous day’s crude oil rate and the US dollar exchange rate to the diesel price. Diesel prices are updated daily at 6:00 a.m. IST by fuel companies. The practice of dynamic fuel pricing mechanism is followed by most advanced markets in the world.
|Also Check: Diesel Price in Chandigarh|
How to Check the Current Diesel Price in Faridabad?
Oil companies have introduced various methods to track the current diesel price in a city. With diesel prices revised on a daily basis, it might be a difficult task in tracking the latest diesel price. The methods below aides in checking the current retail selling price of diesel in Faridabad.
- Website: Consumers can visit the respective oil company’s website to track the fuel prices offered in a city. Since fuel prices are revised daily, oil companies update their website daily with today’s diesel price in Faridabad as well as other cities across the country.
- Mobile Apps: Customers can use mobile apps launched by oil companies. Indian Oil has introduced the ‘Fuel@IOC’ app, Hindustan Petroleum has launched the ‘MY HPCL’ app, while Bharat Petroleum offers services through their ‘SmartDrive’ app.
SMS Service: For those looking to utilise the SMS service, one can do so by following the process below to get the current diesel rate in Faridabad or other cities.
- Indian Oil: SMS RSP Dealer Code to 9224992249.
- Hindustan Petroleum: SMS HPPRICE Dealer Code to 9222201122.
- Bharat Petroleum: SMS RSP Dealer Code to 9223112222.
Computation of the Diesel Price in Faridabad
To understand the concept of dynamic fuel pricing mechanism and the factors which influence the diesel price in Faridabad better, let’s take an example of the diesel price recorded on 3 June 2018 in Faridabad.
|1||Crude Oil Price + Freight Charges||$78.30 per barrel = Rs.32.98/Litre (considering $1=66.96 and 1 barrel oil = 159 litres)|
|2||Oil Companies’ Profit margin, transportation, refining, and other operational costs||Rs.8.10/Ltr|
|3||Centre’s Excise Duty + Road Cess||Rs.15.33/Ltr|
|4||Commission to dealers||Rs.2.53/Ltr|
|5||State’s Value Added Tax (VAT) + 25p Pollution Cess with surcharge||Rs.10.40/Ltr|
|Total||Retail selling price of diesel in Faridabad||Rs.69.34/Ltr|
GST Vs. Current Tax in Diesel
India introduced the unified tax regime known as the Goods and Service Tax (GST) effective from 1 July 2017. However, the supply of petroleum products such as diesel and petrol are exempted from attracting the GST. While the highest tax slab under the GST is 28%, the current taxes i.e. excise duty and VAT, are higher. Through the current tax rate, the Centre and the State generate huge revenues. Since petroleum products are major revenue generators, GST is currently not applicable to diesel in Faridabad or other cities in the country. However, by bringing diesel and petrol under the GST, the price will reduce considerably.
Also Check Diesel Price in NearBy Cities of Faridabad
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|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.