Diesel Price in Hyderabad
Hyderabad, one of the metropolitan cities in India, is the capital city of two states, Telangana and Andhra Pradesh. After the bifurcation of Andhra Pradesh from Telangana, Hyderabad became part of the latter state.
With the increasing number of people migrating, the city has been experiencing an increase in the number of private vehicles especially two wheelers and four wheelers. In just five years, the number of vehicles plying on the city roads increased manifold.
Public transport in Hyderabad is composed of state-run diesel buses, autos run on diesel/CNG, private cabs and a sub urban rail line.
Fuel consumption, especially diesel consumption in the city is likely to be high with most of the public transport vehicles depending on diesel.
The city has enough number of fuel stations majorly operated by state-owned fuel companies such as Indian oil, Bharat Petroleum and Hindustan Petroleum.
|Also Check: Diesel Price in Telangana|
Factors Affecting Diesel Rate in Hyderabad
Diesel Price in Hyderabad, similar to other Indian cities, is composed of various components.
The primary components that make up the diesel price include price of crude oil bought from international market and the US dollar to Indian rupee exchange rate.
Diesel is typically bought in its crude form from the international oil companies in barrels. Each barrel is equivalent to 159 litres of oil.
The base price of diesel thus includes the rate of a litre of diesel, calculated from the barrel price, along with the freight charges. Therefore, whenever there is a fluctuation in the global crude oil price, the retail selling price of diesel in India changes.
|Also Know: Petrol Price In Hyderabad|
As oil trading usually happens in US dollars, any change in the dollar to rupee exchange rate would impact the diesel price in Hyderabad.
The other prime factors that would impact the diesel rate are the state and central taxes levied by the respective governments. While the central government charges excise duty on diesel, which is same across the states, the state government levies value added tax (VAT), which is different for different states.
Whenever there is a change in the tax rate, the diesel price will get affected. For instance, the recent excise duty cut on diesel by the central government reduced the price of diesel in Hyderabad, along with other Indian cities, by Rs. 2/Lt, effective from 4 October 2017.
Similarly any fluctuation in VAT, as decided by specific state governments, will also affect the diesel price.
Other factors that would marginally impact the diesel price are the dealer’s margin, fuel transportation charges, oil company’s profits and other charges like cess.
Diesel Price Trend in Hyderabad between July and September 2018
|Opening date price||Rs.73.24 a litre||Rs.73.93 a litre||Rs.76.60 a litre|
|Closing date price||Rs.73.80 a litre||Rs.76.42 a litre||Rs.81.35 a litre|
|Highest price||Rs.74.47 a litre||Rs.76.42 a litre||Rs.81.35 a litre|
|Lowest price||Rs.73.24 a litre||Rs.73.93 a litre||Rs.76.60 a litre|
Diesel Price Trend in Hyderabad in July 2018
- Instead of revising fuel prices once a fortnight, the oil selling entities will reprice both diesel and petrol every day and announce the revised fuel rates at 06:00 am.
- As India imports crude oil or unrefined oil from the overseas market, dynamic fuel pricing ponders the selling price of crude oil and the INR-USD exchange rate.
- For all the 31 days of July 2018, dynamic fuel pricing was used to review diesel rate at all the diesel supply centers in Hyderabad, the common capital of Andhra Pradesh and Telangana.
- Diesel prices neither reduced nor stayed stable in the first half of July. Instead, they kept increasing since the dollar gained versus the currency of India.
- In the last fifteen days, the fuel rate showed a mixed reaction since the crude oil price and the exchange rate were highly volatile. Even though diesel rates have increased in July, the growth rate was minimal.
- The lowest price stood at Rs.73.24 a litre. It was also the opening date price for the month. Other prime cities in Andhra Pradesh have also reported the same trend.
Diesel Rate Trend in Hyderabad in August 2018
- Diesel price movements were interesting to notice in August 2018 since the pricing strategy of the oil companies was completely different.
- State-run oil retailing enterprises increased the price of diesel by 13 paise per litre on 2 August and 10 paise a litre on 3 August.
- This month also, the price of crude oil slid. But, no impact was seen on the pricing of diesel. Under dynamic fuel pricing, fuel price was Rs.74.55 per litre and the commodity continued to retail at the same price until the completion of the second week.
- In August 2018, the price of diesel was also stable at Rs.75.30 per litre, Rs.75.22 per litre and Rs.74.94 a litre.
- The opening and closing date prices stood at Rs.73.93 a litre and Rs.76.42 per litre. We can notice a price rise of Rs.3.50 per litre in August 2018.
- The revision of the central tax and the sales tax has a direct impact on fuel rates. But, these two forms of taxes were not revised.
Diesel Price Trend in Hyderabad in September 2018
- Fuel pricing is currently controlled by the OMCs, which can either decrease or increase the fuel price. Sometimes, they can retain the same price.
- In July and August, the trends were not alike despite a fall in the crude oil rate and the dollar-rupee rate.
- Even in this month, diesel prices in the city of Hyderabad were on an upward trend until the last day.
- Fuel consumers and even the political leaders voiced their concerns related to expensive diesel and petrol. The Bharat Bandh was successful in Hyderabad on 10 September.
- Compared to July and August, the speed at which the rates of diesel went up has been higher in September. This is because of the degree of downfall in the price of petroleum per barrel.
- While the growth rate in July was 0.76% and 3.36% in August, the growth rate in September was higher than the previous two months.
- Diesel rate in Hyderabad increased by Rs.8 per litre this quarter. In other prime Indian cities such as Delhi, Kolkata, Chennai, Bangalore and Gujarat, the fuel retailing companies increased the price by Rs.8 per litre.
- The price offered on the last day of September 2018 was the highest fuel rate for the whole quarter. Likewise, the price offered on the first day of July was the lowest fuel price for the same period.
- Fuel marketing companies, while revising the price, also take into account the changes in refining costs, OMC costs, the commission charged by dealers, etc.
- All these domestic influencers were steady in July, August and September.
Note: In India, the price of Indian crude oil is taken into account for revising the prices of both diesel and petrol.
Quarterly Diesel Price Trend in Hyderabad Between April and June 2018
|April 2018||May 2018||June 2018|
|Opening date price||Rs.70.16 a litre||Rs.71.63 a litre||Rs.75.26 a litre|
|Closing date price||Rs.71.63 a litre||Rs.75.31 a litre||Rs.73.24 a litre|
|Highest price||Rs.71.67 a litre registered on 24th||Rs.75.38 a litre registered on 29th||Rs.75.26 a litre registered on 1st|
|Lowest price||Rs.70.16 a litre registered on 1st||Rs.71.63 a litre registered on 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th and 11th||Rs.73.24 a litre registered on 27th, 28th, 29th and 30th|
Diesel Price Trend in Hyderabad in April 2018
- On the 1st of the month, diesel was supplied at Rs.70.16 per litre, this was also the lowest diesel price of the month.
- Diesel prices remained steady during the first week with an average price of Rs.78 per litre. State-run oil companies continued to revise diesel prices under the ‘Dynamic Fuel Pricing’ mechanism.
- By mid-April, diesel prices in Hyderabad increased by 27 paise per litre in tandem with the rise in the global crude oil price.
- The highest diesel price in the month stood at Rs.71.63 per litre registered on the 24th of the month.
- By the end of the month, diesel prices reflected an upward trend of 2.10% mainly influenced by the slight increase in the crude oil price.
Diesel Price Trend in Hyderabad in May 2018
- The diesel price in Hyderabad on 1st stood at Rs.71.63 a litre, kept unchanged from the previous day.
- Fuel companies kept diesel prices unchanged till the 11th of the month due to the steady rate of crude oil prices in the global market. This price was also the lowest diesel price recorded for the month.
- Post the 11th, diesel prices were increased as the crude oil rate inclined significantly.
- With the crude oil rate touching $80 per barrel, diesel prices touched a new high of Rs.71.63 per litre in Hyderabad as well as other cities in the country, which is also registered as the highest diesel price of the month.
- Diesel prices are influenced by the external factors such as the crude oil and the currency exchange rate, while internal factors include taxes, profit margin and operational cost of oil companies as well as a commission to dealers.
- The rise in diesel prices during May 2018 was not influenced by internal factors, but that of external factors.
- The considerable incline in crude oil rate is attributed to geopolitical tensions of a possible trade war between the US and China.
- By the end of the month, diesel prices grew by 5.14% largely impacted by the significant rise in crude oil rates.
Diesel Price Trend in Hyderabad in June 2018
- With the concerns over the potential trade war between the US and China declining, crude oil prices slightly fell and thereby diesel prices were reduced by oil companies.
- On the 1st of June 2018, diesel was sold at Rs.75.26 per litre in Hyderabad, a reduction of 7 paise per litre compared to the preceding day.
- The Organisation of Petroleum Exporting Countries (OPEC) and its key ally Russia decided to meet on 22nd to address the concerns of a rising crude oil price.
- Diesel prices in the second and third week declined marginally and fell by Rs.1.59 per litre by the 20th of the month.
- The OPEC and Russia agreed to increase the output of crude oil to increase the supply to tackle the rise in fuel prices across the globe.
- By the end of the month, diesel prices declined to its lowest at Rs.73.24 per litre which was kept unchanged for the last four days of the month.
- Overall, the diesel price trend in Hyderabad in June 2018 reflected a downward trend of 2.68% largely due to the increase in output and the decline in concerns over a potential US-China trade war.
Trend in Diesel Price in Hyderabad between January 2018 and March 2018
|Opening date price||Rs.64.92 per litre||Rs.69.63 per litre||Rs.67.68 per litre|
|Closing date price||Rs.69.53 per litre||Rs.67.50 per litre||Rs.69.97 per litre|
|Highest price||Rs.69.53 per litre registered on 31||Rs.69.75 per litre registered on 6 and 7||Rs.69.97 per litre registered on 31|
|Lowest price||Rs.64.92 per litre registered on 1||Rs.67.49 per litre on 25||Rs.67.68 per litre registered on 1|
|% Deviation||7.10% up||3.05% down||3.38% up|
Trend in Diesel Price in Hyderabad in January 2018
- The lowest and opening date prices stood at Rs.64.92 a litre at Hindustan Petroleum, Bharat Petroleum and Indian Oil, which later on hiked the fuel rate pondering the movements in the crude oil price and the currency translation ratio.
- Every day, a revised price offer was made in Hyderabad and it is something unusual to observe. The growth rate in the fuel price was 0.92% in the week 1, 2.38% in the second week, 1.75% in the third week, and 1.62% in the week 4.
- This steady growth rate ought to be attributed to the constant crude oil’s demand and the major variations in the USD/INR exchange rate.
- The highest rate was logged at Rs.69.53 a litre on 31 since the fuel uninterruptedly gained the value for 30 days this month.
- The Government of India retained the same level of excise duty in January 2018. Moreover, the VAT on diesel was also retained unaffected at 28.60% a litre in the city.
- Transnationally, no production cuts were declared by oil-producing nations due to poor weather conditions or maintenance. Crude oil was distributed at the anticipated level to oil-importing nations, including India.
Trend in Diesel Rate in Hyderabad in February 2018
- On 31 January, the crude oil rate (Indian Basket) was $66.40 per barrel that further enlarged to $66.03 per barrel on 8 February. Therefore, the fuel reached its highest price at Rs.69.75 a litre on 7 February.
- Fascinatingly, the diesel rate stirred downwards continually until the end of the month in sync with the falling crude oil rates and a gaining USD.
- Within the first 15 days, a 4.17% drop in the crude oil cost led the diesel rate to diminish to Rs.68.77 a litre. The move was slightly affected by the disparities in the exchange rate as well.
- Even though the BJP-led Government declared the Union Budget on 1 for the FY 2018-2019, the opening date price of Rs.69.93 a litre was announced under dynamic fuel pricing, a fuel price revision system adopted in India on 16 June 2017.
- As the cost of crude oil (Indian Basket) dropped to $63.27 per barrel from $65.04 per barrel in the week 4, the month ended with the lowest price of Rs.64.29 a litre.
- No domestic forces should be accounted for a price drop of 3.05% this month. The central tax on diesel remained unchanged at Rs.15.33 per litre and also the VAT at 28.60% in Hyderabad.
Trend in Diesel Rate in Hyderabad in March 2018
- The USD/INR conversion rate as of 1 March was Rs.65.24 and was down 0.53% to Rs. 64.89 as of 7 March. Thus, within the first week, the fuel rate jumped to Rs.68.45 per litre.
- Between 8 and 18, the diesel rates have steadily fallen in sync with the Indian Basket average price of crude oil, which decreased to $62.04 per barrel on 14.
- On 21, it rebounded to $65.08 per barrel. As a result, the fuel companies once again commenced mounting the offer, which reached to Rs.68.37 a litre on 22.
- Since the crude oil price soared to $66.03 per barrel towards the end of the month, the month closed with the highest price offer of Rs.69.97 a litre on 31.
- The growth rate in March slid to 3.38% from 7.10%, which was logged in January, primarily due to the decreased cost price of WTI Crude Oil and Brent Crude Oil.
- The effect of the INR/USD exchange ratio was minimal throughout the quarter but not negligible. A fuel price rise in January and March or a fuel price downfall in February was not triggered by the domestic factors, which were constant.
Diesel Price in Hyderabad Compared to Other Metro Cities
Diesel price in Hyderabad is the highest among other metros in the country including Mumbai, Delhi, Kolkata, Chennai, and Bengaluru.
The high diesel price in the city can be directly attributed to the high tax levied by the Telangana state government compared to other metro states.
State Taxes and Diesel Price in Hyderabad
As discussed earlier, state government levies VAT on diesel and other petroleum products.
As of October 2017, Telangana government charges 27% VAT on diesel and the same is applicable in the city of Hyderabad.
Compared to the other states, VAT charged by Telangana government is apparently high as it still collects the entry tax on diesel, which is part of VAT, even after the implementation of goods and services tax (GST) in India.
As per the new GST regime, all the taxes levied by state and central governments including entry tax should be abolished on all products/services. Neighbouring state governments like Karnataka abolished entry tax on diesel and petrol soon after GST has been implemented.
However, Telangana government is reportedly charging 8% entry tax, even after it was abolished, leading to high diesel prices in the state.
How often Diesel Prices are Revised in Hyderabad
Diesel prices in Hyderabad, just like in any other Indian city, are revised on a daily basis. Also known as dynamic fuel pricing, the new fuel pricing system came into effect in India in June 2017. Prior to dynamic fuel pricing, diesel rates were revised once in 15 days.
Daily revision of diesel prices is to align the retail selling price of diesel in India to the international markets. This ensures even the slightest reduction in oil prices reach the end customer on a daily basis.
As per the new regulation, diesel prices in Hyderabad will be updated at all the petrol pumps by 6 a.m. every morning. The same will be displayed high at the fuel stations.
While the automated fuel stations get an auto update of diesel prices, the non-automated stations have to do it manually by fetching the same details from the oil company’s websites or mobile applications.
Customers can get the daily revised diesel price by downloading the mobile apps of respective oil companies. For instance, IOCL has an app called Fuel@IOC, BP’s app is called SmartDrive, and for HP, it is MYHPCL.
Effect of GST on Hyderabad Diesel Price
Following the implementation of GST in India, many are apprehensive about the petrol and diesel prices as we Indians are already spending much on petrol and diesel compared to other countries.
The good news is that there is no effect of GST on the diesel price in Hyderabad. And the bad news is that diesel prices would have come down if the commodity is taxed under GST.
In other words, diesel along with other petroleum products are currently kept outside the purview of the new tax regime. Hence, they are still being charged as per the old tax, which includes both central and state taxes.
To keep it simple, the effect of GST on diesel in Hyderabad for now is nil. If it is brought under GST in future, the price of diesel is likely to come down as the combined state and central taxes are more than the highest tax charged under GST.
Diesel Rate versus Petrol Rate in Hyderabad
Diesel price in Hyderabad is lesser than the petrol price due to less amount of tax being levied on diesel compared to its counterpart.
Currently, the central excise duty on diesel is Rs. 15.33/Lt and that on petrol is Rs. 19.48/Lt. Also VAT levied on diesel is 27% compared to 35.2% on petrol.
The difference in taxation is what makes petrol dearer than petrol.
Also Check Diesel Price in NearBy Cities of Hyderabad
|Diesel Price In Warangal||Diesel Price In Guntur||Diesel Price In Nellore|
|Diesel Price In Kakinada||Diesel Price In Visakhapatnam||Diesel Price In Kurnool|
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