Diesel Price in Haldwani
Diesel price in Haldwani as on 12 April 2018 was Rs.65.27 a litre at Indian Oil, Rs.65.30 a litre at Hindustan Petroleum and Rs.65.38 a litre at Bharat Petroleum. We can observe a minute variation due to quality parameters. More than Rs.30 a litre goes towards taxes. Fuel consumers will pay an excise duty of Rs.15.33 a litre on diesel in Haldwani, a city in Uttarakhand. A VAT of 16.94% on diesel per litre is imposed on them, according to a recent report.
Analysis of Diesel Price in Haldwani (three months January 2018-March 2018)
The diesel rate in Haldwani was revised to Rs.60.73 a litre on the opening day of January 2018 by publicly-owned fuel companies, which consist IOCL, BPCL and HPCL. It enhanced to Rs.64.50 a litre on 01 February 2018 and again slid to Rs.62.91 a litre on the first day of March 2018. The fuel rate moved upwards during the months of January 2018 and March 2018. But in the month of February, it produced a falling trend. We can say that the trend in the fuel price in Haldwani has not been steady. For a few days, the trend was positive. The negative trend was also seen for some period of time.
Dynamic Fuel Pricing into Action
There has to be a certain base to revise the price of something be it a service or a commodity. Diesel is a widely used commodity across the globe. To reset the price of diesel, fuel entities have now been following dynamic fuel pricing. What is that? It is a daily fuel revision mechanism that was adopted in our country on 16 June 2017. The mechanism has also been in use in the USA, Russia etc. It was tested for a period of 40 days in 5 towns in India before it was introduced throughout the country.
How does Dynamic Fuel Pricing Work?
This fuel pricing mechanism is based on the fundamental principle that fuel marketers ought to reset the diesel rate every day at 06:00 a.m. Crude oil overheads and the INR/USD exchange rate will form the basis for the revision. Fuel marketers can retain the same price if there are no noticeable changes in these two price determinants. They can increase or decrease the fuel price based on the market performance. Since diesel prices in Haldwani are getting reviewed each day, diesel customers from the city are instructed to check the latest fuel rate offered at each oil company.
Why Dynamic Fuel Pricing?
- This mechanism will permit Oil Marketing Companies (OMCs) to foster their mechanisation drive.
- The profit margin of OMCs can be increased since they are allowed to decay running costs.
- OMCs can assure the steady distribution of diesel to the consumers in the city of Haldwani.
- No political pressures can impact fuel pricing.
- Diesel users are aligned to real-time market performances. This is a key feature of dynamic fuel pricing.
Methods to Track Today’s Diesel Rate in Haldwani
OMCs are currently offering highly personalized mobile apps to help customers to trace the current fuel price in Haldwani. Consumers may consider downloading either SmartDrive or My HPCL or Fuel@IOC. These mobile applications are easy to download and provide significant benefits to users. If you would like to obtain the diesel rate offered at Indian Oil, Fuel@IOC should be downloaded. The customers of HPCL should download My HPCL whereas the customers of Indian Oil should download SmartDrive.
SMS Services to Track Latest Diesel Price in Haldwani
- HPCL consumers: HPCL consumers should type RSP, leave a space and type the dealer code. The SMS request must be sent to 9222201122.
- BPCL consumers: BPCL consumers should type RSP, provide a space and then provide the dealer code. The SMS request must be forwarded to 9223112222.
- Indian Oil Customers: Indian Oil consumers should also type RSP, provide a space and then enter the dealer code. The SMS request should be forwarded to 9224992249.
Assessment of Diesel Price in Haldwani
How is the assessment done? The diesel rate is fixed by OMCs that have a big role to play. They will borrow unrefined oil from other countries, turn that into diesel and market the refined oil to fuel stations. It spends many expenses during this process. The expenses that are commonly spent by OMCs encompass the crude oil rate in global markets, entry taxes, Refinery Transfer Price (RTP) and operational expenditures. As of 12 April 2018, the crude oil rate was estimated to be Rs.26 on diesel per litre and the average crude oil cost was estimated to be Rs.10 on diesel per litre.
Retail Selling Price of diesel in Haldwani = Crude oil costs + taxes + OMC expenses + dealer commission + pollution cess
Factors Impacting Diesel Price in Haldwani
- Exchange Rate: The exchange rate determines the cost of crude oil and will change based on the economic performance of India and the United State of America. You can expect a rise in the cost of crude oil if the USD appreciates against the Indian rupee. The market price of crude oil is expected to grow when the Indian currency depreciates against the dollar. Daily variations in the exchange rate will influence the crude oil expense. Diesel prices are affected in the end.
- Crude Oil Cost: India imports crude oil by paying the price in dollars. Many factors will influence the rate of crude oil. They include the political trends in oil exporting countries, the demand and supply cycle of overseas crude oil, weather reports, etc. It is because of a sharp increase in crude oil costs, diesel prices in Haldwani have crossed their historical highs.
Impact of GST on Diesel Rate in Haldwani
Goods and Services Tax (GST) is tax structure, which has been implemented to unify the existing tax laws in India. Currently, the oil industry is exempted from the GST framework. If the GST Committee decides to bring diesel under the GST purview, the government will end up incurring losses. That is why diesel has been outside the GST structure. As a result, the current diesel rates in Haldwani will not be affected by the present tax system.
*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.