• Diesel Price In Gulbarga Today

    Daily Diesel Rates
    Date Diesel ( / liter)
    10 Dec 2018 ₹ 65.19
    09 Dec 2018 ₹ 65.93
    08 Dec 2018 ₹ 65.93
    07 Dec 2018 ₹ 65.93
    06 Dec 2018 ₹ 66.34
    05 Dec 2018 ₹ 66.77
    04 Dec 2018 ₹ 66.77
    03 Dec 2018 ₹ 67.05
    02 Dec 2018 ₹ 67.42
    01 Dec 2018 ₹ 67.76

    Diesel Price In Gulbarga

    The diesel price in Gulbarga has seen a lot of fluctuations in the recent years. The fuel rates in India are determined by keeping multiple factors in mind. While crude oil plays a key role in this, this isn’t the only factor. There are many other factors involved too. Before we get into detail, let’s first understand the economy of Gulbarga.

    Economy Of Gulbarga

    Officially known as the Kalaburagi district, Gulbarga is one amongst the thirty districts of Karnataka. Its economy is majorly dependent on agriculture. In fact, about 75% of its population depends on agriculture. It brings a huge income and contributes 45% of the district’s total revenue.

    Also Know: Diesel Price in Mysore

    Like other regions in India, Gulbarga depends upon rainfall. Also, irrigation development in the recent years has paved new ways for many farmers. The district features two rivers, which are Bheema and Krishna. However, they still have to depend on other irrigational sources.

    Oil Marketing Companies In India

    India has three major OMCs (Oil Marketing Companies), which are:

    • IOCL (Indian Oil Corporation Limited)
    • HPCL (Hindustan Petroleum Corporation Limited)
    • BPCL (Bharat Petroleum Corporation Limited)

    Besides marketing, these OMCs (Oil Marketing Companies) not only refine oil but also market after buying from oil manufacturing companies like Oil India, ONGC (Oil and Natural Gas Corporation Limited), Cairn India, Reliance Industries, etc. Their buying price is associated directly with the international crude price. Therefore, low prices are positive for the OMCs.

    The revenues of oil marketing companies will progress if oil rates continue to plunge because this results in:

    • Reduction in the purchase cost of crude oil
    • Improvement in the refining margins
    • Progress in the marketing margins

    It is also vital to understand that the oil marketing companies do not have complete freedom in deciding the selling price of fuel. However, they are forced to sell them at a discount.

    Factors That Affect The Diesel Price In Gulbarga

    The retail cost for one gallon of diesel reflects the overall profits and costs of manufacturing and delivering it to the consumers. Though there are multiple factors that affect the diesel rates in India, the four major components include:

    • Cost of the crude oil that a refinery purchases
    • Refining cost and profit
    • Marketing, distribution, and pump cost as well as profit
    • Tax (set by the local government, state government, county, and federal)

    All these aspects affect the retail cost of diesel but they vary not only over time but also by the geographical location of the place where it is sold.

    1. Cost Of Crude Oil

    The cost of crude oil is one of the biggest and crucial components in determining the retail price of diesel. Global supply and demand help in determining the price of crude oil. In addition, global economic circumstances contribute in the supply-demand cycle for petroleum products that are produced using crude oil. Since diesel is a key fuel in the field of transportation, the demand usually follows the economic trends.

    2. Rise In Demand

    Generally, whenever there is a demand for a commodity, the price of it automatically inclines. This applies to fuel too. When there is a rise in demand, it has a direct impact on its retail price. Countries like India and China depend heavily on distillate fuel, particularly diesel. Europe and Asia use nearly half of the distillate fuel in the world.

    Therefore, they are one of the largest contributors to the global distillate demand. This, in turn, increases the demand and continues as economies continue to expand. As said, when there is an increased demand, the price also increases.

    3. Unevenness In The Demand-Supply Chain

    Transportation prices in India are usually more volatile when compared to the prices of any other commodities. Therefore, the vehicle fleet in India is almost entirely dependent on fuel. If the supply of petroleum products declines unpredictably, either due to lagging imports or refinery issues, diesel inventories (or stocks) might decline quickly.

    When inventories are falling and low, some marketers and wholesalers might bid high for the accessible supplies. In addition, if the transportation system of fuel cannot fulfill the fuel needs on time, especially from location to another quickly, the retail price continues to be comparatively high. However, such fluctuations in the price fluctuations are normal. In fact, they are not only experienced by the fuel market but also in all commodities.

    4. Seasonal Demand

    Even though the demand for diesel in India is consistent and normally reflects its economy, the prices frequently fluctuate throughout the year. However, it sees a surge during some seasons, which is particularly during winter and summer because these are times when people go on vacations. This, in turn, pressurizes the diesel market.

    5. Transportation Cost

    Transportation cost inclines depending on the distance from the supply source and retail location. Regions that are far from the Gulf Coasts tend to have high diesel prices than others that are near.

    6. Regional Operating Cost And Domestic Competition

    Besides transportation, diesel’s cost also reflects the domestic market conditions and the geographical location of a place. Refiners operate and own a few retail outlets whereas other retail pumps are independent traders who buy diesel for a wholesale price.

    Moreover, the cost to do a business can differ prominently based on where the dealers are situated. These costs generally include salaries, benefits, wages, lease/rent, equipment, overhead, state fees, local fees, taxes, and insurance. The retail stations close to each other have different costs, supply source, and traffic patterns. The location and number of domestic competitors also have an impact on the retail price of diesel.

    What Fuel Pricing System does Gulbarga Follow?

    Gulbarga now follows the mechanism of “dynamic fuel pricing.” It was implemented on June 16, 2017, and according to this system, the prices are updated every morning at 6:00 a.m. IST (Indian Standard Time) based on the following:

    • CER – Currency Exchange Rate
    • International Crude Oil Prices

    This method has not only brought a huge change in the fuel pricing system in India but has also prevented the government from affecting or influencing the prices to the OMCs (Oil Marketing Companies).

    Does GST Have any Influence On The Fuel Rates Of Gulbarga?

    Currently, GST does not have any influence on the fuel rates of Gulbarga. Since the implementation of GST (Goods and Service Tax) in India is a long-term process, deciding about it will require the governments to make proper planning.

    Also Check Diesel Price in NearBy Cities of Gulbarga

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    *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 Gulbarga Today

    • Delhi Witnesses a Continuous Rise in Fuel Prices

      National Capital Region of Delhi, has been seeing a continuous rise in the prices of petrol and diesel. Today, the price of petrol was recorded at Rs.82.83 per litre and diesel was priced at Rs.75.69 per litre which is an increase by 11 paise and 23 paise respectively.

      Prices have also increased by 11 paise and 24 paise in Mumbai for petrol and diesel and is selling at Rs.88.29 and Rs.79.35 respectively. Recently a meeting was held between Prime Minister Narendra Modi and Dharmendra Pradhan, the Petroleum Minister along with Arun Jaitley, who is the Finance Minister. IANS, the news agency reported that the meeting was held to discuss issues with petroleum on increasing production of domestic oil and to cut down imports for petroleum.

      Delhi Petrol Dealers Association has called for a protest on the 22nd of October, 2018 where around 400 petrol pumps will be closed in Delhi. This protest is against the Government of Delhi as they have refused to cut VAT on diesel and petrol.

      23 October 2018

    • Global Crude Oil Prices Rises to Rs. 5,182 per Barrel

      Global crude oil prices rose by Rs.61 to Rs.5,182 per barrel in the futures market on Monday. Crude oil for delivery in September was trading higher by 1.19% to Rs.5,182 per barrel at the Multi Commodity Exchange. Global Benchmark for oil Brent Crude in the futures market has touched $79.17 per barrel, which is expected to cross $80 soon. Meanwhile, West Texas Intermediate (WTI) rose by 75 points or 1.06% to $71.53 per barrel. Crude oil prices have risen significantly in the recent months due to a possible declined in the supply of crude oil even as the U.S. administration is looking to impose sanctions on Iran. This has led to a decline in production by Iran. With the U.S. inventories also declining, the crude oil prices are expected to move on an upward trajectory in the coming months.

      25 September 2018

    • Diesel Rates have been Reduced Today, Take a Look at Today’s Diesel Rates

      Diesel rates were declined on Monday, 17 July 2018 in all Indian cities. On Monday, the price of a litre of diesel was reduced to Rs.68.47 a litre from Rs.68.61 a litre in Delhi, Rs.71.03 a litre from Rs.71.16 a litre in Kolkata, Rs.72.80 a litre from Rs.72.80 a litre in Mumbai and Rs.72.29 a litre from Rs.72.43 a litre in Chennai. On Sunday, 16 July 2018, no changes were made in diesel rates. According to sources, the prices of US crude oil and Brent Crude oil were slashed by 0.5% and 0.7% respectively.

      The revision of diesel rates is done under dynamic fuel pricing today. The system was introduced in the country to bring some changes and revise fuel rates on a daily basis like other developed countries such as Japan, Australia, the United State of America, etc. Since the introduction of dynamic fuel pricing in India, diesel rates have been unstoppable. The government officials have not yet confirmed the reduction of excise duty or other remedies to reduce the diesel rate.

      17 July 2018

    • Diesel Prices Kept Steady Today

      Diesel prices were steady on Wednesday just as the previous day. On Wednesday, the diesel price in Delhi stood at Rs.67.78 a litre, Rs.72.13 in Mumbai, Rs.70.33 in Kolkata and Rs.71.54 a litre in Chennai. Diesel prices have considerably fallen from Rs.69.20 a litre on 1 June 2018 in Delhi, Rs.73.67 in Mumbai, Rs.71.75 in Kolkata and Rs.73.06 a litre in Chennai. Diesel prices have reduced by Rs.1.42 a litre since 1 June 2018. The fall in diesel prices is attributed to the decline in global crude oil prices and a weaker US dollar. Also, Russia and Saudi Arabia have already increased the output and claimed they were ready to raise the output.

      20 June 2018

    • Diesel Rates are Marked to Overseas Market Dynamics

      The Chairman of Indian Oil Company said "Currently, the diesel price is interlinked to global market conditions. A 15-day continuing average rate shall be considered in order to review the diesel price. International prices are varying and are depicted in nationwide prices. The present market conditions should not be considered. No product prices should be related with the buying price of crude oil.

      The diesel price is domestically updated periodically in sync with the fluctuations in the benchmark transnational product prices. Most times, the buying price of unrefined oil goes up.” It was subsumed that the government directed all state-run oil marketing companies not to accelerate the diesel price. In all state-owned oil marketing companies - HPCL, BPCL and Indian Oil - the price of diesel was down by 2-4 paise for the first quarter of December 2017.

      31 January 2018

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