Diesel Price in Hosur
This page has been designed keeping in mind the diesel consumers from Hosur, a prime city in Tamil Nadu. The page covers several aspects connected to diesel pricing and revision. It also discusses the latest changes with respect to the fuel marketing industry in India. Authenticated sources have been referred to elicit the required information.
Movements in Diesel Rates in Hosur in Last one year
During the first week of April 2017, the diesel rate stood at Rs.60.03 a litre in the city. Over a span of one month, it increased to Rs.61.96 a litre. The price further declined to Rs.60.44 a litre in the month of June 2017. Owing to the daily revision system, the fuel price in Hosur dropped to Rs.57.29 a litre. The fuel rate began growing slowly after that. In August 2017, it climbed to Rs.59.70 a litre. In September 2017 and October 2017, the diesel rate in Hosur was more than Rs.61 a litre. In January 2018, it crossed 4-year highs at Rs.64.20 a litre.
Does Dynamic Fuel Pricing affect Fuel Prices in Hosur?
Fuel retailers usually follow a certain fuel rate modification system. Prior to June 2017, the fuel marketers in the country were following the fortnightly-based average in order to alter fuel rates. Today, they follow the dynamic fuel pricing approach. The newly launched fuel rate modification approach necessitates IOL, HPCL and BPCL to reset the diesel price in Hosur based on the real-time movements in the INR-USD exchange rate and international crude oil prices. Since these two factors change on a daily basis, the fuel is offered at a different rate in the city. Primarily, dynamic fuel pricing is practiced globally in countries such as Australia and the United States of America.
Are the Diesel consumers in Hosur benefited from this system?
Yes. They are significantly benefited from this system. There used to be stock-related issues earlier. The advent of the daily revision concept ensures that under no circumstances the fuel consumers in the city of Hosur will face the concerns related to stocks. Another major benefit is that the oil selling companies are empowered to fix and reset the fuel rate without the interventions of the ruling government. The falls in crude oil rates could be instantly shifted to end consumers. This was not the case previously.
What are the benefits of Dynamic Fuel Pricing for Oil Corporations?
In Hosur, more than 97% of diesel outlets are governed by three publicly-owned oil companies, which include Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited (HPCL). The daily revision practice offers significant advantages to them. Firstly, the fuel retailers are able to address the issues related to cash management and working capital. As a result, they can minimise the time and money required to manage the business.
Methods used to obtain the Latest Diesel Rate in Hosur
You are advised to check the current diesel price in Hosur before fueling your vehicles. It can be done easily. How? Start using mobile applications, which have been offered by fuel marketers. Presently, SmartDrive, My HPCL and Fuel@IOC are widely utilised by consumers. My HPCL is a unique mobile application developed by HPCL and provides an extensive range of benefits. Fuel@IOC has been designed by IOL. It is a fully customer-friendly mobile app. You can also consider using SmartDrive, which is provided by BPCL to get today’s diesel price in Hosur.
Fuel Retailing Industry Stakeholders
- Oil Extractors: Crude oil is supplied globally by oil extractors, which include OPEC countries majorly. The export and import of unrefined oil will take place on a contractual basis generally.
- Oil Companies: Oil companies are a key player in the industry. They buy crude oil from overseas markets, turn into diesel, and finally sell it to end users.
- Government: The State and Central Governments are also a part of the industry. They influence fuel pricing in India.
Which are the components of Diesel Price in Hosur?
- Taxes: In India, petrol and diesel are heavily taxed. They form a major cost center. As on 20 March 2018, the central levy on diesel was Rs.15.33 a litre. On the other hand, the VAT on diesel was 25% in Tamil Nadu. In excess of 40% of the diesel rate paid by you at diesel outlets in Hosur goes towards the state and central taxes.
- Crude Oil Rate: The crude oil rate is determined by oil-extracting countries considering many aspects. As of early March 2018, the price of crude oil per barrel was around $65.5. In India, the cost of a litre of crude oil works out to be more than Rs.26.
- OMC overheads: OMCs pay Refinery Transfer Price, import taxes, landing overheads etc. As per calculations, the total amount of the overheads spent by OMCs works out to be Rs.8.40 a litre. It may change.
Influencers of Diesel Rates in Hosur
Diesel prices in Hosur are influenced by several forces, including the conversion rate of the USD-INR currency pair, domestic and international market conditions, import and export policies, the disparity between the supply and demand for unrefined oil etc. For instance, the current diesel price in Hosur gets changed if there are any variations in the tax structure. If the INR starts falling continually against the dollar, you can anticipate a price hike.
Current Diesel Rate in Hosur vs Goods and Services Tax
Diesel buyers in the city are currently not remitting the taxes on diesel under the GST structure as diesel has been outside the scope. Therefore, it has no effect. The insertion of diesel will negatively affect the current fuel price in Hosur. Moreover, the State Government of Tamil Nadu and the Central Government of India tend to lose earnings.
Also Check Diesel Price in NearBy Cities of Hosur
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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.