Diesel Price in Ghaziabad
One of the fastest-growing cities in the world, Ghaziabad is located in the Indian state of Uttar Pradesh. Part of the National Capital Region of Delhi, Ghaziabad is a large and industrial city in the State. With the rise in population, the city has grown tremendously in the recent past.
Transportation in the city is offered by State-owned buses as well as taxis and auto rickshaws. Private vehicles such as two-wheeler and four-wheelers are also a popular mode of transport within and outside the city.
With the fuel consumption in Ghaziabad on the rise, diesel has become an essential commodity for both public and commercial operations. The diesel price in Ghaziabad is not constant as it’s revised on a daily basis.
|Also Know: Diesel Price in Uttar Pradesh|
Elements which Impact the Diesel Price in Ghaziabad
The two main elements or factors which impacts the diesel price in Ghaziabad are external and internal in characteristics. While the global crude oil price and the US dollar exchange rate are external factors, taxes, operational costs, profit margin and commission to dealers are internal factors. To understand these factors better let’s analyse them in detail.
- External Factors: India purchases more than 70% of crude oil from oil-producing countries making it an expensive commodity in India. Therefore an increase in the global crude oil price has a direct impact on the diesel price. The global crude oil price changes due to several factors such as production cuts, shortage in supply, demand vs. supply as well as due to geopolitical tensions. For example, if oil-producing countries increase the output of crude oil, diesel prices decrease or vice versa. The other external factor is the currency exchange rate of the US dollar. Since trading of crude oil typically happens in dollars, a change in the exchange value impacts the cost to purchase crude oil in the international market. An instance of the US dollar appreciating over the Indian rupee will lead to an increase in crude oil and a depreciating dollar lowers the cost to buy crude oil.
- Internal Factors: Once crude oil is imported, oil companies refine and then supply it across fuel stations in India. These fuel companies add their profit margins and other operational costs as well as the commission to dealers (petrol pump owners) to the Retail Selling Price (RSP) of diesel. Therefore, a revision of these charges leads to a change in the diesel price. The other biggest internal factor, which is also the biggest component, is the tax on diesel in India. The government of India levies excise duty and the states charge local sales tax or Value Added Tax (VAT) on the supply of diesel to consumers. While the excise duty is uniform across the country, VAT differs from state to state. Currently, diesel attracts Rs.15.33 per litre as excise duty and VAT levied by the state of Uttar Pradesh is 16.99% on a litre of diesel. As and when the Centre or the State change the tax rate, diesel prices in Ghaziabad either increased or decreases.
When are Diesel Prices Revised in Ghaziabad?
Diesel prices in Ghaziabad are revised daily like other Indian cities. The daily revision method is known as the ‘Dynamic Fuel Pricing’ mechanism. Fuel companies include the preceding day’s global crude oil rate and the exchange rate of the US dollar to the final selling price of diesel in Ghaziabad.
Under this method, the latest crude oil price is passed on to consumers which is either an incline or decline in the diesel price. Prices are updated daily at 6 a.m. IST which is automatically updated at automated fuel stations while it’s manually updated at non-automated petrol pumps.
Before the dynamic fuel pricing mechanism was introduced, diesel prices were revised every fortnight. Under this pricing mechanism, oil companies would include the average rate of the global crude oil prices of the preceding fortnight and the currency exchange rate to the final selling price of diesel. However, this led to losses incurred by oil companies as they had to wait a fortnight to pass on an increase or a decrease in the crude oil rate to the consumer.
To offset the losses incurred by oil companies, the daily revision method was introduced where diesel prices are in tandem with the global crude oil prices.
How to Find the Current Diesel Price in Ghaziabad?
With diesel prices changing every day, it could be an issue knowing the current diesel price in a city. To enable customers to track the latest diesel price, fuel companies have introduced different ways to track the current diesel rate.
- Through Smartphone Apps: Consumers can take advantage of mobile apps launched by India’s leading oil companies. Indian Oil has launched the ‘Fuel@IOC’ app, Bharat Petroleum has introduced the ‘SmartDrive’ app, while Hindustan Petroleum consumers can utilise the ‘MY HPCL’ app to get the latest fuel price in a city.
Through SMS Services: Fuel companies have introduced services through SMS as well. Indian Oil consumers looking to find the current diesel price at a fuel station need to send ‘RSP
dealer code’ to 9224992249, Bharat Petroleum customers are required to send ‘RSP dealer code’ to 9223112222, while Hindustan Petroleum consumers need to send ‘HPPRICE dealer code’ to 9222201122.
- Through Oil Company’s Website: One can visit the respective oil company’s website to get the current diesel price in a city.
Computation of the Diesel Price in Ghaziabad
To understand the concept of ‘Dynamic Fuel Pricing’ mechanism better, let’s take the diesel price recorded on 3 June 2018 in Ghaziabad.
|1||Global 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.10.26/Ltr|
|Total||Retail selling price of diesel in Ghaziabad||Rs.69.21/Ltr|
Is GST Applicable on Diesel in Ghaziabad?
Supply of goods and service attract the new Goods and Service Tax (GST) introduced by the government of India. However, products such as diesel and petrol have been exempted from the GST and continue to be charged VAT and the excise duty. This is because the current tax rate is higher compared to the peak rate of GST, which is 28%.
By bringing diesel under the framework of the GST, both the Centre and the states lose out on the revenue generated through the current taxation rates. That said, if diesel comes under the current tax slabs of GST, the final selling price of the fuel will considerably reduce.
*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.