Diesel Prices in Himachal Pradesh
Have you checked the latest movements in diesel prices in Himachal Pradesh? If yes, what is the trend? Whether you are a retail or an institutional customer, understanding the current price is an important aspect. You might not have noticed that all Indian oil marketing companies have shifted to dynamic fuel pricing on 16 June 2017. Dynamic fuel pricing is a fuel pricing methodology that revises fuel rates regularly. It means every day you have a new price fixed for diesel. The price revision is completely based on the rate of crude oil and the value of the INR against the USD.
In fact, diesel prices in all cities of Himachal Pradesh are not the same. There exists a slight variation because of the commission charged by dealers. It is ideal to consider at least three prime cities in Himachal Pradesh to make a comprehensive analysis of diesel prices in the state. In Shimla, the capital city of the state, the price of diesel on 9 November 2017 was Rs.58.48 per litre. On the same date, in Solan, the biggest Municipal Council of the state, the fuel price was Rs.58.07 per litre. In Dharamsala, the second winter capital of the state, the fuel was sold at Rs.59.11 per litre.
Historical Diesel Prices in Shimla, Solan and Dharamsala
In Shimla, the diesel price in Shimla has been moving in an upward trend since the beginning of November 2017. In October 2017, the fuel price reduced to Rs.57.90 per litre on the closing day from Rs.59.11 per litre. In September 2017, the fuel was sold at Rs.57.33 per litre on the opening day. In Solan, during the first week of November 2017, the average price of diesel was Rs.58 per litre. During the same period, the average diesel price was above Rs.58.00 per litre in Dharamsala.
How are Diesel Prices in Himachal Pradesh Revised?
As discussed earlier, dynamic fuel pricing mechanism has been introduced in India to revise fuel rates. This mechanism has been in use in the country since 16 June 2017. Under this new mechanism, all state-run oil marketing companies will revise diesel and petrol prices every day in sync with global crude oil rates and the exchange rate. The same mechanism is followed in other developed countries such as the United States of America, Australia and Russia.
Himachal Pradesh has a good network of diesel stations scattered across all parts of the state. A majority of fuel stations are non-automated and will revise fuel prices manually. All automated petrol stations will revise fuel prices automatically. The price revision is done at 06:00 a.m. every day. Consumers can trace the latest price by downloading the mobile applications created by oil marketing companies or by SMS alerts.
|Also Check: Diesel Price in Shimla|
Advantages of Dynamic Fuel Pricing
- The system entrusts 100% fuel transparency.
- Inventory management will now be easier for dealers.
- The working capital can be well managed.
- The Indian fuel retailing sector can be linked to global markets.
- The daily variations in crude oil rates and the INR/USD are passed on to end customers.
Quarterly Diesel Price Trend in Himachal Pradesh Between October and December 2018
|Opening date price||Rs.74.80 a litre||Rs.71.44 a litre||Rs.65.39 a litre|
|Closing date price||Rs.71.38 a litre||Rs.65.75 a litre||Rs.61.03 a litre|
|Highest price||Rs.75.13 a litre registered on 4 October||Rs.71.44 a litre registered on 1 November||Rs.65.39 a litre registered on 1 December|
|Lowest price||Rs.70.59 a litre registered on 5 October||Rs.65.75 a litre registered on 30 November||Rs.61.03 a litre registered on 31 December|
Diesel Price Trend in Himachal Pradesh Between October and December 2018
- Diesel was priced Rs.74.80 per litre on 1 October, which inclined to record the highest price of the month at Rs.75.13 per litre on 4 October.
- Diesel and petrol rates are determined by State-run oil marketing companies, who consider the 14-day average price of crude oil and the exchange rate of the rupee against the US dollar to arrive at the final selling price of diesel.
- Under this pricing mechanism, the price of diesel is revised daily by oil companies and is effective from 6.00 am.
- The Centre reduced the excise duty levied on the sale of fuel in the country by Rs.1.50 per litre and asked oil firms to cut Rs.1 per litre from fuel subsidy.
- On 5 October, diesel recorded its lowest price for this month when a litre of diesel was sold at Rs.70.59 per litre.
- By the end of the month, diesel rates in Himachal Pradesh declined by 4.57% attributed to the slight drop in crude oil price and the cut in excise duty.
- On 1 November, diesel prices in Himachal Pradesh stood at Rs.71.44 per litre, which was also the highest rate recorded during this month.
- Due to geopolitical tensions between the US and China prompted crude oil prices to trade higher which led to record highs of fuel prices in India.
- On 30 November, the lowest diesel price in Himachal Pradesh was recorded when it was available at Rs.65.75 per litre.
- Overall, the diesel price trend in November declined by 7.97% influenced by the decline in crude oil prices in the global market.
- On 1 December, the diesel rate in Himachal Pradesh stood at Rs.65.39 per litre - the highest price registered during this month.
- While crude oil prices were trading around $80 per barrel early October, it fell significantly by the end of December when it was around $56 per barrel.
- With oil prices on the decline, diesel prices in Himachal Pradesh dropped to touch the lowest for the month at Rs.61.03 per litre.
- By the end of December, the diesel price declined by 6.67% in Himachal Pradesh attributed to the steep fall in crude oil prices as well asthe appreciation of the rupee over the US dollar.
Quarterly Diesel Price Trend in Himachal Pradesh between July and September 2018
|Opening date price||Rs.67.14 per litre||Rs.67.64 per litre||Rs.69.97 a litre|
|Closing date price||Rs.67.56 per litre||Rs.69.97 per litre||Rs.74.15 a litre|
|Highest price||Rs.68.86 per litre documented on the 15th||Rs.69.97 per litre documented on the 31st||Rs.74.15 a litre documented on 28th, 29th and the 30th|
|Lowest price||Rs.67.03 per litre documented on the 6th||Rs.67.64 per litre documented on the 1st||Rs.69.97 a litre documented on the 1st|
Diesel Price Trend in Himachal Pradesh in July 2018
- Diesel prices, like petrol, are revised on a daily basis by State-owned Oil Marketing Firms under the dynamic fuel pricing method. The new rates are effective from 6:00 am IST.
- Oil companies arrive at the retail price of diesel by including the global crude oil price and the exchange rate of the rupee and the U.S. dollar.
- Based on the pricing mechanism, the diesel price in Shimla, the capital city of Himachal Pradesh, on the 1st of July stood at Rs.67.14 per litre.
- Prices declined to touch the lowest price of the month when a litre of diesel was sold at Rs.67.03 per litre on the 6th of the month.
- However, diesel prices moved upwards during the second and third week to touch the highest price on the 15th with diesel available at Rs.68.86 per litre.
- Prices declined over the course of the fourth week but not lower than the opening price of the month.
- The closing price of diesel in Himachal Pradesh stood at Rs.67.56 per litre - an increase of 42 paise over the opening price.
- The diesel price trend in Himachal Pradesh in July 2018 was upward growing by 0.62%, mainly influenced by the marginal rise in crude oil price in the global market.
Diesel Price Trend in Himachal Pradesh in August 2018
- In accordance with the dynamic fuel pricing mechanism, the diesel price in Himachal Pradesh on the 1st of August stood at Rs.67.64 per litre - the lowest rate recorded during the course of the month.
- Over the course of the first and second weeks, diesel prices in the state inclined in sync with the rise in crude oil prices in the market.
- The increase in crude oil prices was attributed to geopolitical tensions after the U.S. pulled out of the nuclear deal with Iran.
- With sanctions from the U.S., the oil supply from Iran fell which prompted oil prices to move upwards during the month.
- By the end of the month, the diesel price in Himachal Pradesh stood at Rs.69.97 per litre, also, the highest price registered during the month.
- The diesel price trend in Himachal Pradesh in August grew by 3.45%, primarily affected by the incline in the global crude oil prices.
Diesel Price Trend in Himachal Pradesh in September 2018
- On the 1st of September, a litre of diesel in Himachal Pradesh was sold at Rs.69.97. This was also the lowest diesel price recorded during the month in Himachal Pradesh.
- Due to geopolitical tensions, the supply of oil was limited in the market, affecting the price of crude oil.
- The global crude oil price rose to touch a four-year high of $80 per barrel, prompting fuel prices to increase across the globe.
- Also, the rupee depreciated to a record low of Rs.72 over the U.S. dollar, which added to the rise in diesel prices across the country.
- Both these factors influenced diesel and petrol price to new record levels across the country. Except for states such as Rajasthan, Karnataka, West Bengal and Andhra Pradesh, where a reduction was announced in the local sales tax or VAT on fuel supply in their respective state.
- There was no let up in the rise in diesel prices in Himachal Pradesh and it inclined to touch the highest price for the month at Rs.74.15 per litre on the 28th, which was kept unchanged until the end of the month.
- Overall, diesel prices in Himachal Pradesh grew significantly by 5.97%, impacted by the steep rise in crude oil prices and the record fall in the Indian currency’s exchange rate over the dollar.
Quarterly Diesel Price Trend in Himachal Pradesh between April and June 2018
|Opening date price||Rs.64.23 a litre||Rs.65.55 a litre||Rs.68.85 a litre|
|Closing date price||Rs.65.55 a litre||Rs.68.9 a litre||Rs.67.03 a litre|
|Highest price||Rs.65.59 a litre registered on the 24th||Rs.68.96 a litre registered on the 29th||Rs.68.85 a litre registered on the 1st|
|Lowest price||Rs.64.23 a litre recorded on the 1st||Rs.65.55 a litre registered on the 1st||Rs.67.03 a litre registered on the 1st|
Diesel Price Trend in Himachal Pradesh in April 2018
- Crude oil rates and the exchange rate are the two important global factors, which greatly impact the pricing of diesel. These factors also determine diesel price trends in Himachal Pradesh and other states as well.
- Each month has different trends. The movement of diesel rates in Shimla, the capital city of Himachal Pradesh, Mandi and Manali were interesting to notice in April 2018.
- Under dynamic fuel pricing, fuel rates were not changed on the 3rd, the 4th, the 19th and the 20th. On the 25th, diesel price in Shimla stood at Rs.65.55 a litre.
- The fuel was sold at a price of Rs.65.55 a litre on the 26th , the 27th, the 28th, the 29th and the 30th. Towards the end of the month, diesel prices were also constant in other cities of Himachal Pradesh.
- In April 2018, the domestic currency was reported to be slightly weaker against the greenback. Crude oil rates were increased to $69.30 per barrel.
- Therefore, diesel rates in all regions of Himachal Pradesh were increased by 2.05%. The highest fuel rate for this month stood at Rs.65.59 a litre whereas the lowest fuel price stood at Rs.64.23 a litre.
Diesel Price Trend in Himachal Pradesh in May 2018
- The opening date price was Rs.65.55 a litre in Shimla, which is the capital city of Himachal Pradesh. It remained unchanged in other notable cities in Himachal Pradesh such as Mandi, Manali and Dharamshala, etc.
- Triggered by the sluggish crude oil market and the steady exchange rate, diesel rates for the first eleven days of the month were stable at Rs.65.55 a litre.
- Fuel rates were on the rise during the last two weeks. On the 21st, the fuel price was increased to Rs.67.49 a litre and Rs.68.82 a litre on the 28th.
- The highest fuel rate for the month stood at Rs.68.96 a litre on the 29th. The fuel rate was declined to Rs.68.38 a litre on the 30th. It was further reduced to Rs.68.90 a litre on the 31st.
- In May 2018, the cost of unrefined oil per barrel was up by $6. As a result, diesel rates across the state were up by 5.11%.
- Owing to the growing trend, the highest fuel price was booked at Rs.68.96 a litre on the 29th. The opening date price was also the lowest fuel price for the month.
Diesel Price Trend in Himachal Pradesh in June 2018
- Crude oil costs were highly volatile in this month. Therefore, fuel companies such as Hindustan Petroleum, Bharat Petroleum and Indian Oil revised the fuel rate on a daily basis.
- Under dynamic fuel pricing, the price of diesel per litre in the capital city of Himachal Pradesh was Rs.68.85 a litre on the 1st.
- For the first week, the average diesel rate per litre in Shimla was Rs.68.61. It dropped to Rs.67.71 a litre for the second week.
- Domestic factors such as excise duty and Value-added Tax (VAT) had no impact on the pricing of diesel not only in this month but also in the last two months.
- Between April 2018 and June 2018, diesel was taxed at 14.33% by the State Government of Himachal Pradesh. The excise duty imposed by the Central Government was also not revised during this quarter.
- Diesel rates in Himachal Pradesh were down 2.64% to Rs.67.03 per litre in June 2018 caused by a downfall in crude oil rates.
- For the quarter, the lowest and highest diesel prices in Shimla stood at Rs.64.23 a litre and Rs.68.85 a litre.
Quarterly Diesel Price Trend In Himachal Pradesh Between January 2018 And March 2018
|Opening date price||Rs.59.42 per litre||Rs.63.74 per litre||Rs.61.98 per litre|
|Closing date price||Rs.63.65 per litre||Rs.61.81 per litre||Rs.64.05 per litre|
|Highest price||Rs.63.65 per litre on 31st||Rs.63.85 per litre on 6th and 7th||Rs.64.05 per litre on 31st|
|Lowest price||Rs.59.42 per litre on 1st||Rs.61.80 per litre on 25th||Rs.61.98 per litre on 1st|
Diesel Price Trend In Himachal Pradesh In January 2018
- Himachal Pradesh recorded its lowest diesel price for the month at Rs.59.42 per litre on 1st January.
- Diesel price grew at 1% during the first week in Shimla, Solan and Dharamshala in Himachal Pradesh triggered by the fall in the value of the USD over the INR as well as due to the depreciation of the crude oil price in the global market.
- In tandem with the fall in the USD and the increase in the Indian Crude Oil Basket rate, prices of diesel continued to rise over the month.
- In the last week, global demand for crude oil rose which led to an increase in fuel prices in India. Himachal Pradesh recorded its highest diesel price for the month at Rs.63.65 per litre on 31st January.
- Prices of diesel reflected an upward trend at 7.11% in January 2018, attributed to the depreciating dollar and an increase in the prices of unrefined oil in the international market.
Diesel Price Trend In Himachal Pradesh In February 2018
- The price for a litre of diesel in Himachal Pradesh on 1st February stood at Rs.63.74, a slight increase over the previous day.
- Despite the unveiling the Union Budget for fiscal 2018-19, a key factor in determining taxes on fuel rates, diesel prices remained unaffected as there was no change in the tax rates for fuels.
- On the 6th and 7th February, prices of diesel in Himachal Pradesh recorded its highest at Rs.63.85 per litre largely due to the increase in global crude oil prices.
- From the third week onwards, fuel prices continued to spiral downwards recording their lowest price of Rs.61.80 per litre on 25th.
- The reduction in diesel price was influenced by the fall in the Indian Crude Oil Basket rate by 7.67% from the period between 14th and 26th. The appreciation of the USD too had its impact on the decline of fuel prices.
- Overall, diesel price trend in Himachal Pradesh fell by 3.02% for the month triggered by the sliding global crude oil price in the global market.
Diesel Price Trend In Himachal Pradesh In March 2018
- On 1st March, the price for a litre of diesel stood at Rs.61.98 in Himachal Pradesh, the lowest of the month.
- Diesel prices in Himachal Pradesh remained stable since there was no significant change in the global crude oil price - the pattern of the demand and supply of the commodity, and the USD/ INR exchange ratio.
- By the end of the third week, fuel prices increased by as much as 1.79% compared to the opening day price.
- With the decrease in the value of the USD and the increase in unrefined oil price in the global market, diesel prices rose to post the highest price at Rs.73.07 per litre on 31st March.
- In March, diesel price witnessed an upward trend at 3.34% attributed to the rise in global crude oil price and the reduction in the value of the USD.
State Levies on Diesel
In India, diesel is a subsidised commodity. It is taxed by the central and state governments. The central excise recently reduced to Rs.15.33 per litre on 3 October 2017. The excise duty remains unchanged throughout the nation. As far as local taxes are concerned, diesel is taxed differently. As per the information revealed by Petroleum Planning and Analysis Cell on 04 October 2017, the local tax or the Value-added Tax (VAT) imposed on diesel in Himachal Pradesh was 16%. It was 19% in Karnataka. In Madhya Pradesh, it was 30.24%.
How are Diesel Prices in Himachal Pradesh Computed?
Dealers, oil marketing companies and refineries are the three stakeholders involved in the oil and natural gas industry. Oil marketing companies (OMCs) will import crude oil from overseas oil marketing companies. The imported crude oil is then shifted to refineries for further processing. The refined oil will be supplied to end consumers by dealers by charging commission. Therefore, the retail selling prices of diesel paid finally by end customers includes all expenses.
The cost of crude oil, refinery transfer price, taxes, entry taxes, marketing expenses and operational costs are the various types of expenses incurred by OMCs. As on 9 November 2017, the price of WTI Crude Oil per barrel was $56.84. Taxes are a major element in the price structure of diesel. They are of two categories: a) the local tax and b) the excise duty. The excise duty is charged by the central whereas the local tax by the state government.
The retail selling price of diesel = taxes + crude oil rates + OMC expenses + profit margin of OMC + dealer commission + pollution cess
Factors Affecting Diesel Prices in Himachal Pradesh
Which factors do you think will affect diesel rates in Himachal Pradesh? The diesel price is impacted by crude oil rates, the INR/USD exchange rate and taxes. Crude oil is an international commodity and the price of which depends on various factors. The INR/USD is a highly volatile currency pair. Taxes are also subject to change.
Therefore, the Retail Selling Price of Diesel increases if:
- The cost of crude oil goes up
- The USD appreciates against the INR
- The central and state governments increase the tax rate on diesel
The Retail Selling Price of Diesel decrease if:
- The cost of crude oil decreases
- The USD depreciates against the INR
- The central and state governments decrease the tax rate on diesel
What is the Impact of GST on Diesel Prices in Himachal Pradesh?
The Goods and Services Tax (GST) is a multi-stage, unified tax system introduced in India in July 2017. All types of commodities and services are taxed under the GST regime currently. GST is not applicable to diesel and petrol and therefore, the current diesel rate in Himachal Pradesh is not impacted by GST. The fuel price will reduce drastically if GST is levied even at the highest rate.
Also Check Diesel Price in NearBy Cities of Himachal Pradesh
*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.