Trend of Diesel Price in Gujarat for August 2019 (rates per /litre ):
|Highest Rate in August||Rs.69.07|
|Lowest Rate in August||Rs.68.10|
Monthly Diesel Price Trend in Gujarat for August 2019
- Diesel price in Gujarat opened the month at Rs.69.07 per litre, unchanged from the previous day’s closing price. After staying stable for the next couple of days, prices dropped a bit with diesel closing at Rs.69.01 per litre, in the first week of August.
- Diesel rate in Gujarat dropped further, recording Rs.68.91 per litre on 8th August. Diesel stabilised on 14th August at Rs.68.44 per litre as the state-run oil marketing companies decided against changing the rates. However, prices dropped further with diesel recording its lowest price on 20th August at Rs.68.10 per litre.
- After staying stable for a couple of days, diesel prices in Gujarat rose marginally, closing the month at Rs.68.25 per litre. Overall, diesel’s performance for the month of August was -1.18%.
Monthly Diesel Price Trend in Gujarat for July 2019 (rates per litre):
|Highest Rate in July||Rs.69.78|
|Lowest Rate in July||Rs.67.25|
- Diesel in Gujarat opened at Rs.67.25 per litre, the lowest recorded price in the month of July. However, diesel prices increased slightly on the next day. Diesel remained stable for the next few days at Rs.67.32 before shooting up considerably. Diesel closed at Rs.69.78 per litre on 7 July, its highest recorded price in the month of July. This substantial hike was primarily due to the Finance Minister’s declaration of imposing excise duty of Rs.1 per litre and road and infrastructure 0f Rs.1 per litre on fuel. The announcement was made during Union Budget 2019.
- Diesel prices started to dip from the next day with the fuel before going stable at Rs.69.32 on 12 July. The initial price drop could be attributed to the speculated global economic slowdown fuelled by US-China trade tensions. Meanwhile, in the international oil industry, fuel gained owing to Middle East tensions that outweighed OPEC and Russia’s plan to extend supply cuts till March 2020.
- In the third week, diesel price in Gujarat remained unchanged, standing at Rs.69.32 per litre for the entire week. State-run oil marketing companies decided not to alter the rates while analysing the global crude industry carefully. Meanwhile, in the global crude oil market, fuel prices dropped after China recorded its slowest quarterly economic growth in over three decades. However, crude gained after US Navy reported of shooting down an Iranian drone, thereby further escalating tensions in the Middle East and a massive drop in US inventories.
- Diesel remained unchanged in the first couple of days of the last week of July before recording a marginal drop, standing at Rs.69.26 per litre. Diesel in Gujarat closed the month at Rs.69.07. Overall, the fuel recorded an incline of 2.70% in the month of July. In the international market, prices dropped due to weak demand of the oil and with Russia and OPEC agreeing to extend supply cuts till March 2020.
Trend of Diesel Price in Gujarat for June 2019 (rates per litre)
|2nd June||Rs.69.21 per litre|
|30th June||Rs.67.15 per litre|
|Highest Rate in June||Rs.69.21 per litre on 2 June|
|Lowest Rate in June||Rs.66.72 per litre from 20-23 June|
- Diesel in Gujarat opened the month at Rs.69.21 per litre, the highest price recorded during the month marked by the rise in crude oil price in the market.
- Prices during the first and second week dropped marginally due to a fall in crude oil prices in the market amid supply cuts led by the OPEC and its allies despite tensions between the US and China over tariffs on imports.
- On 20 June, diesel fell to its monthly low of Rs.66.72 per litre and remained unchanged until 23 June amid falling crude oil prices as production cuts continued by the OPEC.
- By the end of the month, diesel prices in Gujarat declined by 2.98% primarily due to the decline in oil prices despite tensions in the Middle East was expected to hurt oil prices in the market. Also, US sanctions on Iran weighed on the crude oil prices; however, supply cut curbed any incline.
Diesel Price in Gujarat
Diesel price in Gujarat, the westernmost state in India, has seen an upward trend until the recent tax cuts by the central and state governments respectively in October 2017. Following the central government’s request to reduce state level taxes on diesel and petrol, Gujarat is the first state to bring down the value added tax on both diesel and petrol.
As Gujarat’s economy is majorly driven by agriculture and industrial production, consumption of diesel is apparently high. Added to it is the increasing population in Gujarat’s major cities like Ahmedabad, Surat, and Vadodara. With more and more people preferring to travel on their own private vehicles the demand for fossil fuel is increasing.
Would that higher consumption and demand lead to higher diesel prices in the state? Read further to find the answer. You may also get to know about the factors affecting the diesel price in Gujarat, impact of GST on diesel price and about the daily revision of diesel prices in detail.
Factors Affecting Diesel Rate in Gujarat
To understand the various factors that affect diesel price in the state, one needs to understand various components involved in diesel pricing.
The price of diesel, unlike most of the other commodities, does not just include the product price but various other components that add up to the retail selling price of diesel.
The primary elements of diesel pricing include the C&F (cost and freight) price, which is nothing but the rate at which Indian oil companies purchase crude oil from the foreign companies, central and state government taxes, transportation charges, operating costs and margin. Any change in the aforementioned elements would bring variation in the diesel price.
The state specific factor that would affect diesel price in Gujarat is the value added tax (VAT) levied by the state government.
VAT charged on diesel is different for different states. Hence the diesel price in Gujarat primarily varies from other states due to the tax charged by the state government.
Other factors that affect diesel price in Gujarat similar to other Indian states are the international crude oil price, the US dollar to rupee exchange rate, and the central government tax.
India is a major importer of crude oil purchasing about 75% of its oil requirements from other oil producing nations. Price of crude oil is volatile in nature as it is based on various factors such as the demand and supply in the international markets, political stability in the oil producing nations, climatic conditions and others. Therefore any change in the crude oil price will directly affect the price of diesel in India.
|Also Check: Diesel Price in Surat|
The exchange rate is another factor that impacts the diesel price as oil trading typically happens in dollars. The strengthening dollar is always a threat for the oil prices in India.
Other factors that marginally impact diesel pricing in India are the profit margins of dealers and OMCs, transportation and other operation charges. As these factors do not vary on a day to day basis, their impact on the diesel price on a daily basis is negligible.
State Taxes and Diesel Price in Gujarat
As detailed earlier, state specific taxes make diesel price in Gujarat different from that of other states. Currently the Gujarat government levies 25% VAT on diesel effective from 10 October 2017.
The state recently revised its tax rate following the central government’s request to reduce the state-level taxes on petrol and diesel. Prior to the revision, VAT on diesel in Gujarat was 28.96%.
Following the VAT cut diesel price in Gujarat came down by Rs. 2.72 per litre.
How often Diesel Prices are Revised in Gujarat
Unlike the previous fortnightly revision, diesel prices in Gujarat, just like in rest of the India, are being revised on a daily basis.
The new pricing system, also called dynamic fuel pricing, was introduced in June 2017, to bring transparency in fuel pricing and also to align the fuel prices in India to that in international markets. Any change in the global oil prices thus immediately impact the end customer on a daily basis.
As per the new pricing system, all the petrol pumps in the state will update the revised diesel price every day by 6 a.m. While the automated petrol pumps that are controlled centrally get an auto update of diesel price, the non-automated pumps have to do it manually.
Customers can fetch the daily revised diesel prices from the oil company websites and also from the company’s mobile apps, which are compatible on both android and iOS platforms.
For petrol pump specific prices they have to send an SMS along with the dealer code, which is available at the respective petrol pumps, to a specific number as allotted by the oil companies.
Effect of GST on Gujarat Diesel Costs
GST or the goods and services tax is the new tax regime introduced in India since July 2017. Following the implementation of GST, the prices of various goods and services have been impacted both positively and negatively, while few have been completed exempted from tax.
Coming to diesel and other petroleum products, many have been apprehensive about the impact of GST on diesel and petrol prices as more than 50% of their prices are composed of taxes.
Well, to everyone’s surprise both diesel and petrol were kept outside the purview of GST. They are still being taxes as per the old tax regime, where state and central governments collect separate taxes on both the commodities.
Hence the effect of GST on diesel for now is nil. If diesel is brought under GST, its price may come down or go up based on the amount of tax that will be charged. We can expect a price cut only when the new GST is less than the current total tax on diesel.
Diesel Rate versus Petrol Rate in Gujarat
Diesel price in Gujarat, similar to other Indian states, is lesser than petrol prices because of the difference in the taxes being levied on both the commodities. However, compared to other states the price difference between petrol and diesel in Gujarat is relatively less as the state government charges same amount of VAT on both diesel and petrol. It currently charges 25% VAT on both the fuels.
The major factor that contributes to the price difference between petrol and diesel is the central excise tax which is currently at Rs. 19.48 on a litre of petrol and Rs. 15.33 on a litre of diesel. Other factors that bring marginal difference are the dealer’s commission, OMCs profit margin and other charges.
Also Check Diesel Price in NearBy Cities of Gujarat
|Diesel Price in Ahmedabad||Diesel Price In Rajkot|
|Diesel Price in Surat||Diesel Price In Jamnagar|
|Diesel Price In Vadodara|
*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.