Diesel Price in Guwahati
As of 14 March 2018, the diesel price in Guwahati, the biggest city in Assam, was Rs.65.57 a litre. Compared to the previous day, it was down by 0.02 paisa. The price is inclusive of taxes. Value-added Tax (VAT) is charged at state levels. The central tax is charged at the central level. In Guwahati, the excise duty is charged at Rs.15.33 on diesel per litre and VAT is charged at 23.66%. Taxes are subject to change from time to time. During the first week of February 2018, the Central Government had revised the excise duty to Rs.15.33 a litre on diesel.
Analysis of Diesel Price in Guwahati
The diesel rate in Guwahati as on the opening day of January 2018 was Rs.62.26 a litre. On the closing date, it grew to Rs.66.81 a litre. It was up by 6.81% during the month. The fuel transacted with the highest rate of Rs.66.81. The lowest rate was Rs.62.26 a litre. In February 2018, the price of the fuel fell to Rs.64.79 a litre. The highest and lowest prices were Rs.67.02 a litre and Rs.64.79 a litre respectively.
System Used to Revise Diesel Prices in Guwahati
Today, oil marketing enterprises in all cities in India are using dynamic fuel pricing in order to determine and update fuel rates. Dynamic fuel pricing is also called the daily revision system. According to this, all oil companies have to offer a new price at 06:00 a.m. to the public. The determination of reconsideration of fuel prices in Guwahati will be conducted in consideration with the value of the Indian currency against the USD, the prime currency.
|Also Know: Petrol Price In Guwahati|
Before introducing the daily revision system in June 2017, Indian Oil, Bharat Petroleum and Hindustan Petroleum were using the fortnightly-based revision. The revision of fuels used to occur on the first and sixteenth of each month. OMCs had to consider the average INR/USD exchange rate and crude oil rates to offer the price. But, the dynamic fuel pricing methodology revises diesel rates on a daily basis.
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Characteristics of Dynamic Fuel Pricing
- Automated diesel stations in Guwahati can automatically revise fuel rates in Guwahati. On the other hand, non-automated diesel stations will have to do it manually. The new price will be made available to fuel consumers at 06:00 a.m. regularly.
- Diesel consumers will be aligned to overseas market dynamics. This is the best feature of this newly introduced fuel revision mechanism.
- With the daily revision system in place, India has joined Japan, Australia, the United States of America and also Russia. This way the fuel retailing sector in India will be connected to the global fuel retailing sector.
- All oil enterprises, including Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited and Indian Oil in Guwahati can efficiently monitor cash inflows and outflows. Working capital can be well-managed.
- Operational expenditures can be reduced to the possible extent. 100% fuel transparency will be ensured to fuel consumers.
Get Today’s Diesel Price in Guwahati through Mobile Applications
Oil companies have provided mobile applications to trace today’s diesel rate in Guwahati. Smartphone users may consider this option. The mobile applications offer promising features and benefits. The mobile application designed by Indian Oil is Fuel@IOC, the mobile application offered by BPCL is SmartDrive and the mobile application provided by HPCL is My HPCL. The latest fuel prices may also be obtained via SMS services.
Why is the Retail Selling Price of Diesel Assessed in Guwahati?
The retail selling price of diesel in the city of Guwahati is computed by considering the following cost elements:
- The cost of unrefined oil will be Rs.26.42 a lite as of 3 February 2018. It is computed in consideration with the INR/USD exchange ratio. As of 14 March 2018, the USD/INR exchange ratio was Rs.64.92 and the cost of crude oil a barrel was approximately $65.
- The import duties, transportation expenses and profit margin of oil companies work to be Rs.2.87 a litre. On the other hand, landing expenses, operational expenditures and entry levies work to be Rs.7.5 a litre.
- Like mentioned in the first section, on diesel, the central tax is imposed at Rs.15.33 a litre. Before VAT, the price quoted to diesel users will be Rs.52.12 a litre.
- The commission charged by fuel dealers has recently been increased to Rs.2.51 a litre. On petrol, it is Rs.3.59 a litre.
- In Guwahati, VAT on diesel is charged at 23.66%. So, 23.66% of Rs.54.63 works to be Rs.12.92.
Forces Impacting Current Diesel Price in Guwahati
Diesel prices in Guwahati are influenced by the fluctuations in the currency conversion ratio, costs of unrefined oil and taxes. The exchange ratio will fluctuate on a daily basis. The Indian Central Bank will decide it in sync with import and export policies, inflation rates, bank rates, etc. The current diesel rate in the city will increase if the cost of crude oil increases in overseas markets. It will decrease if the cost of unrefined oil decreases. Similarly, oil companies have to make changes in response to the variations in central and state levies.
GST and Diesel Price in Guwahati
GST stands for the Goods and Services Tax. In India, it is a comprehensive and multi-phase tax system that imposes taxes at 5%, 12%, 18% and 28%. The system has replaced various types of indirect levies. At each stage, taxes are levied under the GST system. The consumption of diesel in India is huge. Since the fuel will earn revenues to the government, it has been outside the purview of the GST. The current GST rates will not earn the expected revenues.
Comparison of VAT in the Indian States
The following table outlines the VATs imposed in Indian states as of 4 September 2017:
|States||VAT on diesel|
Also Check Diesel Price in NearBy Cities of Guwahati
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