Diesel Price in Guntur
Diesel price in Guntur is increasing rapidly in response to growing rates of crude oil. According to fuel companies, the price of crude oil mounted by 15%-17% in the last 90 days. They also reported a one-rupee hike in dealers’ commission recently. The fuel rate primarily consists of a central levy and a state-level Value-added Tax (VAT). The central levy is currently charged at Rs.15.33 per litre whereas the VAT is levied at 30.86% in Andhra Pradesh. These details were authenticated by Petroleum Planning and Analysis Cell in September last year.
Analysis of Diesel Rate in Guntur last few days
We can see the fuel price moving both upwards and downwards in the last 10 days. On 13 March 2018, the fuel was priced at Rs.70.15 a litre in Guntur. It remained steady next day. The fuel rate stood at Rs.70.17 per litre on 15 March 2018 and Rs.70.11 per litre on 16 March 2018. On 19 March 2018, the fuel price in Guntur further slid to Rs.70.02 per litre. The next day it retailed at Rs.70.10 per litre. The diesel rates in Guntur were Rs.70.18 per litre and Rs.70.32 per litre respectively on 23 and 24 March 2018. Fuel users may anticipate the similar trend.
|Also Know: Petrol Price In Guntur|
Taxes on Diesel in Guntur
Like mentioned in the previous section, diesel and petrol are taxed at the central level and the state level. The Central Government has made several changes as far as the VAT is concerned. Let’s look at the historical data. The excise duty on the fuel (diesel) was Rs.3.46 per litre in November 2014. Further, it increased to Rs.17.33 per litre in August 2017. The Central Government of India further revised to Rs.15.33 per litre in the month of February 2018. The government may change it whenever needed. If you observe, the current diesel prices in Guntur are high compared to Bangalore, Delhi, Mysore etc.
Impact of Dynamic Fuel Pricing on Today’s Diesel Price in Guntur
We are in the era of dynamic fuel pricing currently. It is a daily fuel reviewing methodology adopted in India previous year. The Indian fuel retailers, including IOL, HPCL and BPCL will offer a completely revised diesel rate to fuel buyers each day at 06:00 a.m. In lieu of considering the fortnightly-average fuel rate, fuel corporations in the city of Guntur will consider the daily variations in the exchange ratio and crude oil rates. This is how the fuel rate is determined and reset. It has been successful in India like other nations such as Japan, Australia and the United States of America (USA).
Merits of Dynamic Fuel Pricing
- Fuel Transparency: In the previously used fuel revision system, bringing transparency in the fuel revision system was tough for fuel retailers. The daily fuel pricing methodology enables the Indian fuel companies to steadily assure the transparency in reviewing and determining fuel prices in Guntur.
- OMCs Efficiency: The three state-run fuel retailers can undoubtedly improve their operational competence by reducing the quantum of time and capital needed to manage day-to-day operations. They can even assure the consistent distribution of diesel to the consumers in the city.
- Consumer Benefits: Fuel users can avail significant benefits from the system. Let’s presume that the cost of a litre of unrefined oil reduces by Rs.2 per litre today, the closing price of unrefined oil is taken into account to determine the diesel price in Guntur tomorrow.
Tracing Today’s Diesel Price in Guntur
Today’s diesel rate in Guntur can be traced using many options. Downloading the mobile applications is the best way. Today, fuel consumers across the country have been using Fuel@IOC, SmartDrive and My HPCL in order to obtain current fuel rates. All the three mobile applications have unparalleled characteristics. They can be used for other purposes as well. For instance, SmartDrive, which is a tailor-made mobile app designed by Bharat Petroleum, also allows you collect details related to car or two-wheeler insurance policies.
Calculation of Diesel Price in Guntur
Diesel rate in Guntur = Commission charged by dealers + VAT levied by the State Government of Andhra Pradesh + Crude oil costs + Central levy + Pollution cess
- VAT: Value-added Tax is charged by the concerned state government. The State Government of Andhra Pradesh imposes a state-level tax at 30.86%. So, 30.86% of Rs.52.12 was Rs.16.08 as of 26 March 2018.
- Central levy: This is a prime element in the retail selling price of diesel in Guntur. As of 26 March 2018, it was Rs.15.33 a litre. We have discussed this section in the earlier section.
- Crude Oil Cost: The cost of crude oil is quoted in international markets. It is based on the political trends in oil-extracting companies, the changes in the supply and demand for unrefined oil, the current and forecasted weather reports, etc. Crude oil prices in March 2018 jumped to $64. When converted into the domestic currency, the price of a litre of unrefined oil will be Rs.26.50 approximately.
Forces affecting Fuel Prices in Guntur
- Crude Oil Rates: Crude oil rates will have a direct impact on fuel rates in Guntur. The buying price of diesel shall drop when crude oil rates fall. On the other hand, the fuel rate will increase when the price of crude oil increases.
- Currency Ratio: A currency ratio expresses the value of one currency against some other currency. With regard to the USD-INR, this exchange ratio gives us the value of the USD against the INR. It will change on a daily basis. If the INR gains or falls against the USD, the latest diesel price in Guntur gets affected.
- State and Central Taxes: Taxes have a greater impact on fuel prices in Guntur. For instance, if the State Government of Andhra Pradesh increases the local tax, the fuel rate will go up. If it decreases, the fuel rate will fall.
GST vs Diesel Prices in Guntur
The current tax system directly impacts the latest diesel price in Guntur. It is actually not levied on petrol and diesel. According to tax professionals, the cost of diesel per litre shall reduce by Rs.18 a litre. In turn, it affects the earnings of the government. The GST must be levied on petrol and diesel in a manner that keeps the revenue of the central unchanged. In other words, the GST Council has to rework the existing tax rates to retain the same level of earnings.
Also Check Diesel Price in NearBy Cities of Guntur
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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.