Diesel Price In India Today

Diesel Price In Indian Cities
City Diesel ( / liter)
AGRA ₹ 63.52
ALIGARH ₹ 63.75
AMBALA ₹ 64.1
AMRAVATI ₹ 68.85
BAREILLY ₹ 63.81
BELGAUM ₹ 64.91
BHOPAL ₹ 65.74
CHENNAI ₹ 68.11
CUTTACK ₹ 69.35
DEHRADUN ₹ 64.07
DELHI ₹ 64.54
DINDIGUL ₹ 68.98
ERODE ₹ 68.54
GULBARGA ₹ 64.86
GUNTUR ₹ 69.56
GURGAON ₹ 64.47
GUWAHATI ₹ 64.86
INDORE ₹ 65.8
JABALPUR ₹ 65.85
JAIPUR ₹ 66.77
JALGAON ₹ 67.56
JAMMU ₹ 63.28
JAMNAGAR ₹ 67.34
JODHPUR ₹ 66.68
KAKINADA ₹ 69.78
KANNUR ₹ 68.2
KANPUR ₹ 63.56
KARNAL ₹ 64.22
KARUR ₹ 68.47
KOLKATA ₹ 66.27
KOTA ₹ 66.39
KURNOOL ₹ 69.81
LUCKNOW ₹ 63.75
LUDHIANA ₹ 64.84
MADURAI ₹ 68.74
MEERUT ₹ 63.55
MUMBAI ₹ 67.52
MYSORE ₹ 64.54
NAGPUR ₹ 66.44
NANDED ₹ 68.21
NASIK ₹ 66.95
NELLORE ₹ 69.85
NOIDA ₹ 63.86
PATNA ₹ 67.74
PUNE ₹ 66.34
RAIPUR ₹ 67.62
RAJKOT ₹ 67.22
RANCHI ₹ 65.79
RATLAM ₹ 65.71
SALEM ₹ 68.85
SANGLI ₹ 66.52
SHIMLA ₹ 62.63
SHIMOGA ₹ 65.52
SOLAPUR ₹ 68.15
SRINAGAR ₹ 65.81
SURAT ₹ 67.41
THANE ₹ 67.6
THRISSUR ₹ 68.45
UDAIPUR ₹ 67.33
UDUPI ₹ 64.43
VADODARA ₹ 67.12
VARANASI ₹ 64.26
VELLORE ₹ 69.25
WARANGAL ₹ 69.72

Diesel Price in India

Diesel is one of the widely used fuel oils in India. Popular for its efficiency and mileage, the petroleum distillate is used to power motor vehicles and equipment installed with diesel engines or compression-ignition engines.

Just like its counterpart petrol, diesel powers many cars, buses, trucks, trains and other commercial equipment such as drilling machines, power generators and other pumping units.

Coming with a lesser price tag than petrol, diesel is one of the most preferred fuel across India. Transport sector is the prime consumer of diesel making it an essential commodity that could directly or indirectly affect the day-to-day life of every Indian citizen.

The price of diesel is hence an important component that people across the country would look out for. If you are one among those, below is an effort to keep you updated about the diesel prices in most major cities along with some information about what could possibly affect the prices.

We also try covering the most important updates about diesel and its prices to help you find anything and everything related to diesel under one roof.

Deregulation of Diesel Prices in India

In October 2014, diesel prices in India were deregulated, linking them directly to the international market rates. Prior to deregulation, diesel rates were regulated by the government.

The deregulation makes the diesel prices market determined without any government intervention. That means any fluctuation in the global crude oil prices will directly affect the retail diesel prices.

The deregulation helps the government to spend less on subsidies in an attempt to bridge the gap between global and domestic market prices.

It also promotes healthy competition among the oil companies, which will eventually benefit end users who can enjoy competitive prices and better service delivery.

Daily Revision of Diesel Prices or Dynamic Fuel Pricing

Following the diesel price deregulation was the introduction of daily revision of diesel prices or the dynamic fuel pricing model.

Came into effect on 16 June 2017, the dynamic fuel pricing model revises both petrol and diesel prices on a daily basis based on the previous day’s international crude oil price and currency conversion rates.

Prior to dynamic pricing, the revision used to happen fortnightly, i.e., on the 1st and 16th of every month based on the average international crude oil price in the preceding fortnight.

By adopting dynamic pricing India joined other developed countries like the US and Australia, where the pricing model is already in use.

The daily revised diesel prices will be updated by the fuel stations at 6 a.m. every day.

The move is to ensure that even the smallest benefit from the change in the international oil prices is passed to the dealers as well as to the end consumers on a daily basis. It will also bring transparency in fuel pricing and will minimise the impact on the dealers who often deal with fluctuating fuel prices.

Quarterly Diesel Price Trend in India between July and September 2018

July August September
Opening date price Rs.67.38 per litre Rs.67.97 per litre Rs.70.26 a litre
Closing date price Rs.67.86 per litre Rs.70.26 per litre Rs.74.51 a litre
Highest price Rs.68.51 per litre documented on the 16th Rs.70.26 per litre documented on the 31st Rs.74.51 a litre documented on 28th, 29th and the 30th
Lowest price Rs.67.38 per litre documented on the 1st Rs.67.97 per litre documented on the 1st Rs.70.26 a litre documented on the 1st
Trend Upward Upward Upward
% Change +0.71% +3.37% +6.04%

Diesel Price Trend in India in July 2018

  • Diesel prices in India are revised every day by State-run Oil Marketing Companies (OMCs) under the dynamic fuel pricing methodology.
  • To arrive at the selling price of diesel, oil companies include the global crude oil price and the exchange rate of rupee against the U.S. dollar.
  • In accordance with the pricing mechanism, oil companies fixed the diesel price in Delhi, the capital of India, at Rs.67.38 per litre on the 1st of July - the lowest price for the month.
  • Prices remained unchanged until the 5th before increasing it by 12 paise per litre on the 6th and continued to be hiked over the course of the first and second weeks.
  • Diesel prices rose to touch the highest price on the 16th when a litre of the fuel was sold at Rs.68.51.
  • Post the 6th, prices declined over the course of the third and fourth weeks; however, it never fell below the opening price of the month.
  • By the end of the month, diesel prices in India in July declined to touch Rs.67.86 per litre on the 30th of the month.
  • Diesel prices in India during the month of July grew by 0.71% attributed to the rise in crude oil prices in the global market.

Diesel Price Trend in India in August 2018

  • On the 1st of August, the diesel price in India stood at Rs.67.97 per litre, an increase of 11 paise over the previous day. This was also the lowest rate registered during the month.
  • Diesel prices continued to incline over the course of the first and second weeks due to the rise in the global crude oil prices.
  • The increase in crude oil price is attributed to geopolitical tensions between the U.S. and Iran after the U.S. pulled out of the nuclear deal between the two nations.
  • With Iran staring at sanctions by the U.S. administration, the oil supply declined in the global market prompting fuel prices in India and other countries to rise accordingly.
  • There was let up in the rise in diesel prices over the third and fourth weeks due to incline in oil prices.
  • By the end of the month, diesel prices rose to touch the highest at Rs.70.26 per litre on the 31st of the month, an increase of Rs.2.29 per litre compared to the opening price of the month.
  • Diesel prices in India in August inclined by 3.37% influenced by the rise in crude oil prices in the global market.

Diesel Price Trend in India in September 2018

  • The opening diesel price in September stood at Rs.70.26 per litre, the lowest diesel price for the month.
  • Prices during the first and second week continued to rise over the incline in crude oil prices in the global market.
  • Due to geopolitical tensions, crude oil was trading at a four-year high of $80 per barrel on the global market prompting fuel prices to increase across the globe.
  • Apart from the rising crude oil prices, the rupee fell to a record low of Rs.72 over the dollar which affected the diesel price in the country.
  • Certain states such as Rajasthan, Karnataka, West Bengal and Andhra Pradesh cut local tax or VAT on petrol and diesel offering some respite to consumers of those states.
  • By the end of the month, diesel prices touched record levels and registered the highest diesel price of the month at Rs.74.51 per litre on the 28th and were kept unchanged until the end of the month.
  • Overall, diesel prices inclined sharply by 6.04% influenced by the steep incline in the global crude oil price and the significant depreciation in the Indian currency over the U.S.

Quarterly Diesel Price Trend in India Between April and June 2018

April May June
Opening date price Rs.64.58 per litre Rs.65.93 per litre Rs.69.24 per litre
Closing date price Rs.65.93 per litre Rs.69.29 per litre Rs.67.38 per litre
Highest price Rs.65.97 per litre recorded on 24th Rs.69.35 per litre recorded on 29th Rs.69.24 per litre recorded on 1st
Lowest price Rs.64.58 per litre recorded on 1st Rs.65.93 per litre recorded from 1st to 11th Rs.67.38 per litre recorded from 27th to 30th
Trend Upward Upward Downward
%Change +2.09% +5.10% -2.67%
Diesel Price Trend in India

Diesel Price Trend in India in April 2018

  • On 1 April 2018, the diesel price in India stood at Rs.64.58 per litre - also the lowest price recorded in the month.
  • Fuel prices in India are revised on a daily basis under the ‘Dynamic Fuel Pricing’ mechanism. The diesel price is updated every day at 6:00 a.m. by fuel companies.
  • Diesel prices in India continued to remain steady with a marginal increase in the prices influenced by a slight increase in the global crude or unrefined oil.
  • Prices of petrol continued to rise in tandem with the crude oil rates although only a slight revision was done.
  • The highest diesel price in India during April 2018 stood at Rs.65.97 per litre recorded on the 24th of the month.
  • The diesel prices trend in India during April 2018 inclined by 2.09%. The incline in diesel prices is in tandem with the rise in global crude oil rate.

Diesel Price Trend in India in May 2018

  • With the 2018 Karnataka Assembly Elections scheduled for the 11th, fuel companies abstained from revising diesel prices in India.
  • The diesel price in India in May 2018 stood at Rs.65.93 per litre, also the lowest diesel price for the month.
  • Diesel prices in the second and third week grew in tandem with the global crude oil rates.
  • On 29 May 2018, diesel prices in India touched an all-time high of Rs.69.35 per litre. Prices had increased by Rs.3.42 per compared to the first day’s price.
  • The rise in diesel prices in India as the crude oil price touched $80 per barrel due to geopolitical tensions over the potential disruption in supplies.
  • Despite a slight decline in diesel prices in the last two days of the month, fuel prices reflected an upward trend of 2.09% during the course of the month.

Diesel Price Trend in India in June 2018

  • With diesel prices soaring, the Organisation of Petroleum Exporting Countries (OPEC) and Russia decided to meet on 22 June 2018 to address the concerns of a rising diesel price across the globe.
  • On 1 June 2018, the diesel price in India stood at Rs.69.24, which is also the highest petrol price of the month.
  • With geopolitical tensions easing, the global crude oil rate fell marginally and oil companies revised diesel prices accordingly in India leading to a slight decline in diesel prices in the country.
  • The OPEC and its key ally Russia during their meeting agreed to raise the production of crude oil to soften the rising oil prices.
  • Diesel prices in India started to decline in tandem with the crude oil price. The diesel price fell to its lowest at Rs.67.38 per litre on 27 June 2018 and continued till the end of the month.
  • Overall, the diesel price trend in June 2018 showed a downward trend of 2.67% as the output of crude oil was increased as well as due to the ease in geopolitical fears.

Quarterly Diesel Price Trend In India Between January And March 2018

January February March
Opening date price Rs.59.76 per litre Rs.64.09 per litre Rs.62.30 per litre
Closing date price Rs.64 per litre Rs.62.13 per litre Rs.64.40 per litre
Highest price Rs.64 per litre recorded on 31st Rs.64.20 per litre recorded on 6 & 7 Rs.64.40 per litre recorded on 31st
Lowest price Rs.59.76 per litre recorded on 2nd Rs.62.12 per litre recorded on 25 Rs.62.30 per litre recorded on 1st
Trend Upward Downward Upward
%Change +6.72% -3.15% +3.34%
Diesel Price Trend in India

Diesel Price Trend In India In January 2018

  • Diesel price in India on 1st of January 2018 stood at Rs.59.76 per litre, which was the lowest price of diesel for the month.
  • While the cost of diesel continued to remain steady in the first week, it increased slightly in the second week of the month by nearly a Rupee.
  • In the third week of January 2018, the price of diesel increased to Rs.61.74 per litre 15th. The rise in price was attributed to the hike in the global crude oil prices by nearly 1.76%.
  • In relation to the increase in prices of WTI Crude and Brent Crude, the price of diesel continued to spiral to its highest at Rs.64 per litre on the closing day of the month.
  • Overall, the diesel price for the month reflected an upward trend at 6.72% owing to a higher global price of crude oil and a slight decrease in the USD/ INR exchange rate.

Diesel Price Trend In February 2018

  • The cost to buy a litre of diesel in India on 1st of February stood at Rs.64.09, an increase of 9 paise over the previous day.
  • While the price of diesel continued to rally at a steady pace, it was at its highest at Rs.64.20 per litre on 6th and 7th of the month. The slight increase in the diesel cost was directly in proportion to the increased demand for the crude oil in global markets.
  • Towards the second and third week of the month, diesel prices fell significantly recording their lowest of Rs.62.12 per litre on 27th of the month.
  • The reduction in the price of diesel was attributed to the increase in INR value over the USD in the last couple of days of the month. Additionally, the Indian Basket rate fell from $65.12 per barrel on 26th to $63.99 per barrel on the last day of the month, which impacted the rise in cost of diesel.
  • On the closing day of the month, diesel price stood at Rs.62.13 per litre.
  • The prices of diesel for the month of February 2018 witnessed a downward trend at 3.15%. The downward trend in the prices of diesel was impacted by the fall in the international crude oil prices.

Diesel Price Trend In March 2018

  • On 1st of March 2018, the price of diesel stood at Rs.62.30 per litre. Despite an increase over the previous day, this was the lowest price of diesel for the month.
  • During the first week, the cost of diesel continued to remain stable, but with a short spike in cost on the 6th and the 7th of the month, nearly 70 paise over the opening price for the month.
  • From the second week, diesel prices continued to decrease before it began to increase in the third and fourth week of the month.
  • The increase in the cost to buy diesel was attributed to the hike in crude oil prices, which stood at $62.04 per barrel on the 14th and gradually increased to $66.80 per barrel on the 26th.
  • With the excise duty and Value Added Tax (VAT) rates remaining unchanged by the Central and State Government respectively, the price of diesel continued to cost in sync with the change in the price of the crude oil.
  • Diesel price on the closing day of the month stood at Rs.64.40 per litre, which was the highest in the first quarter of the calendar year.
  • The diesel price in March 2018 reflected an upward trend of 3.34%, mainly indicated by the increase in global crude oil prices per barrel.

How to Find Diesel Price Every Day?

With the daily revision of fuel prices in place, you may have to pay different price every time you fill your vehicle. While the prices in the automated fuel stations will be changed centrally, the non-automated pumps have to change them manually.

The non-automated fuel stations and consumers can access the updated daily price through various means such as –

  • Mobile app – By downloading apps of state-owned oil manufacturing companies (OMCs), one can fetch daily updated prices of both diesel and petrol at all cities in India. Fuel@IOC is the mobile app of Indian Oil Corporation (IOC), SmartDrive is for Bharat Petroleum (BP), and for Hindustan Petroleum (HP) it is MYHPCL.
  • SMS service – Consumers can send a text message in a specific format with the dealer code to get the daily diesel price at specific fuel stations
    • For IOC dealer diesel price, sms RSP< SPACE >dealer code to 9224992249
    • For BP, RSP< SPACE > dealer code to 9223112222
    • For HP, HPPRICEdealer code to 9222201122

The dealer code is usually displayed at the fuel stations, in the absence of which consumers can ask for the same at the station or get it from the respective OMC website.

  • OMC’s WebsitesCustomers can also visit the official websites of respective OMCs to find the diesel price.

Various Components That Add up to Diesel Price in India

Though diesel is widely used across the country, very few customers actually know that the price of the diesel when purchased in crude form is less than half the price of what they typically pay at the fuel station?

Yes, when Indian oil manufacturing companies (OMCs) import crude oil (raw material for petrol/diesel) from other countries, they pay a nominal price per litre. Many a times it is less than Rs.25 per litre. Then what is adding up to make it thrice the original price.

Well, there are more than a couple of components that add up to the actual fuel price making it heavier on Indian pockets.

The components that contribute to the retail selling price of diesel include –

  • Cost of crude oil + cost and freight (C&F) charges
  • Refinery transfer price (RTP)
  • Price charged to dealers
  • Central and state taxes
  • Dealer commission + other charges
  • Cost of crude oil + cost and freight (C&F) charges
  • India is the third largest oil consumer in the world. According to Petroleum Planning and Analysis Cell (PPAC), the country’s fuel consumption grew to 194.2 million tonne (Mt) in 2016-17. Of the total, diesel consumption accounts to 74.6Mt, making it the most consumed fuel.

    Despite being one of the major oil consuming nations, India produces only 25% of its total crude oil requirements. As a result, the country has been increasingly depending on crude oil imports which meet nearly 76% of its requirement.

    Most of the oil is imported from OPEC nations including Saudi Arabia, United Arab Emirates, Nigeria, Iraq, Iran, Kuwait, Angola, Malaysia, Indonesia, and off-late from the United States.

    The journey of diesel, thus, begins with the purchase of crude oil from other countries which usually sell the oil in barrels for US dollars.

    Indian OMCs pay the crude oil price plus the cost and freight charges to the foreign oil companies, which forms the base rate of the oil.

  • Refinery Transfer Price (RTP)
  • The purchased crude oil is then sent to the refineries for further processing to extract petrol and diesel. The OMCs pay a certain amount of fee to the refineries for every litre of petrol/diesel processed. The fee is called refinery transfer fee (RTP).

  • Price charged to dealers
  • The OMC then sells the refined diesel to local dealers, which are usually fuel station owners, by adding some profit margin to the actual cost. From then the dealers become owners of the fuel.

  • Central and state taxes
  • The dealer then adds two different taxes - the Central Excise Duty levied by the Central Government and the Value Added Tax (VAT) imposed by the state government. While the excise duty remains fixed across India, VAT is something which varies from state to state. The variation in fuel price from state to state is mainly because of this component.

  • Dealer Commission + other charges
  • The final step is to add dealer’s commission and the air ambience charges to get the final retail selling price of diesel. The variation of diesel price from fuel station to station is mainly due to variation in dealer’s commission and other transportation charges involved.

Price Break up of Diesel

The data is as on 24 Sep 2017 in Delhi at IOCL retail pump outlet

Components of Diesel Price Break-up Unit
Cost & Freight (C&F) Price $/bbl 68.92
Average Exchange Rate Rs/$ 64.09
Trade Parity Landed Cost Based on Daily Pricing Methodology (Price paid OMCs to refineries) Rs/Lt 28.16
Marketing Cost, Margin, Freight and Other Charges Rs/Lt 2.06
Price Charged to Dealers Rs/Lt 30.22
Excise Duty Rs/Lt 17.33
Dealer Commission Rs/Lt 2.50
VAT applicable for Delhi @ 16.75% + Rs. 0.25/Lt pollution cess Rs/Lt 8.67
Retail Selling Price at Delhi Rs/Lt 58.72

Let’s put everything in numbers:

On 24 Sep 2017, price of diesel in the international market is $68.92 per barrel (one barrel=159 litres).

The average exchange rate on the day is Rs.64.09 per dollar, which brings the cost price of one litre diesel to Rs. 27.78. As per the daily pricing methodology, the OMCs pay Rs. 28.16 per litre to refineries.

After adding their profit margin, marketing cost, freight and other charges OMCs sell it to dealers for Rs. 30.22 per litre.

The fuel station dealers then add excise duty of Rs. 17.33 per litre, commission of Rs. 2.50 per litre, VAT and pollution cess of Rs. 8.67 per litre and sell it to the customers at Rs. 58.72.

Factors Affecting Diesel Prices in India

Major factors that affect diesel price include – international crude oil price, exchange rate and taxes.

  • International crude oil price: The primary factor that affects the diesel price is the crude oil price in the international market. The crude oil prices are typically determined by various factors including worldwide demand and supply, global economic conditions, seasonal and climatic changes, political instability in oil producing countries. Let’s look at them in detail -
  • Increased demand: The same demand and supply phenomenon applies even for the diesel price. The higher the demand when the supply is short, the higher the price of diesel. Similarly, high supply and less demand will lead to reduction in prices.
  • Seasonal and climatic changes: Whenever there is a change in season, oil refineries tend to conduct maintenance activities which may partially affect the production activities leading to lesser supply and higher price.

Severe weather changes or natural calamities such as cyclones and hurricanes may also affect both drilling and production activities leading to oil shortage. Sometimes transportation facilities are also affected resulting in less refined gasoline.

  • Devaluation of US dollar: As crude oil is traded in US dollars and the dollar being the most stable currency, directly affects the global oil prices. Whenever dollar gains strength, there would be a drop in the value of oil and other dollar denominated commodities and vice versa.
  • Political instability: Any geo-political tension that affects the oil production throughout the world or in the oil producing countries will show direct impact on the fuel prices. The recent tensions between the US and North Korea has significant impact on the dollar which in turn resulted in fluctuating fuel prices.
  • Exchange rate: The crude oil is typically bought in US dollar, therefore, any change in India’s exchange rate and the US dollar will affect the buying cost of crude oil hence would impact the selling price in India.
  • Central and state taxes: Whenever there is a change in state and central tax on fuels it would be reflected in the retail selling price of diesel. As different states have different VAT rate, the rate of diesel varies from state to state.

Trend of Diesel Price in India for past Six Months

As mentioned earlier, diesel price revision which used to happen fortnightly is now happening on a daily basis. As discussing about every day price only makes it lengthy, let us see the trend of diesel prices before and after dynamic fuel pricing is in place –

  • Trend of Diesel Prices post Dynamic Fuel Pricing
  • Aimed to bring more transparency in fuel pricing and to benefit end consumer with even the slightest change in the oil price, the dynamic fuel pricing is still a matter of controversy.

    Soon after the daily price revision system was introduced from mid-June, there was an immediate decline in diesel price. From Rs. 54.49 per litre on 16 June it continued to drop for 15 continuous days till it reached Rs. 53.33 on 1 July in Delhi. Since then, the price of diesel has been on rise, with the OMCs increasing it in small doses every day, except a few smaller cuts here and there. The price of diesel has risen by Rs. 5.39 per litre to Rs. 58.72 as of 24 September.

    The increasing crude oil price is one major factor that contributed to the diesel price hike during the period. The price of one barrel of crude oil has seen an 18% increase from $58.06 on 01 July to $68.92 on 24 September. Hence the corresponding diesel price increase of over 10.10% in Indian market.

  • Trend of Diesel Prices before Dynamic Fuel Pricing (March to June)
  • The last revision during the fortnight pricing happened on 15 June, when the price of diesel was cut by Rs. 1.24 per litre making it Rs. 54.49 per litre in Delhi.

    On 1 June, the price of diesel was increased by Rs. 0.89 per litre to Rs. 55.94.

    The month of May has seen two revisions including a marginal 44 paisa hike per litre of diesel on 1 May to Rs. 57.35 followed by a rate cut of Rs. 2.10/litre on 15 May.

    On 16 April, diesel was at Rs. 55.61 per litre, Rs 1.04 increase from the previous revision and the revision towards the month end increased its price further by Rs. 2.94.

    In the month of March, the price of diesel was cut by Rs 2.91 per litre bringing its cost to Rs. 55.61.

    The change in the prices were majorly attributed to the global crude oil prices and the exchange rate.

GST and Diesel Price

There has been an ongoing discussion on bringing the fuel prices under the goods and services tax (GST), which subdues all indirect taxes levied by the state and central governments.

Some experts opine that bringing them under the new tax regime would lead to a reduction in prices as the majority of fuel price is constituted of central and tax rates.

  • Taxes constitute more than 40% of the diesel price
  • As on 24 September 2017, diesel costs Rs. 58.72 per litre, of which Rs 26 goes to central and state government in form of excise duty and VAT. Which means taxes constitute 40% of the selling price of diesel making them another deciding factor after global crude oil price.

  • 386% tax hike in three years
  • Between July 2014 and January 2016, the price of the crude oil in the international market slashed more than 70% from $106 per barrel to $26. With India importing more than 70% of its petroleum requirements, any change in the global crude oil prices should bring change to the selling price of diesel.

    Despite 70% change in the global prices, the selling price of the diesel remained almost unaffected due to the incumbent government’s tax hike in a move to meet its revenue and fiscal deficit targets.

    On 1 April 2014, the central excise duty on diesel was Rs 3.56 per litre, which in three years was increased by a whopping 386% to Rs. 17.33 per litre (as of 25 September 2017). Further, the state governments also revised VAT on diesel at various occasions.

    The combined effect of central and state government taxes led to the continuous increase in diesel prices even when the crude oil has become cheaper by little less than half.

  • Bringing diesel under GST – The impact
  • Petroleum products such as petrol, diesel, jet fuel and natural gas have been kept outside the purview of GST. If they are brought under GST, the prices may become substantially cheaper.

    Currently, GST is applied in four tax brackets – 5%, 12%, 18% and 28%. Even after taxing petrol/diesel under the highest tax bracket that is 28%, the prices would come down at least by 22%. However, in a few cities where taxes are little lesser, the prices may go up.

Also check Today's Diesel Price in the most popular Indian cities

Frequently Asked Questions on Diesel Price

  1. Why is diesel cheaper than petrol?
  2. Though both diesel and petrol are derivatives of the same crude oil, the price of both the commodities vary in India. This is mainly because of the state and central taxes being levied differently for both the products. Even the dealer’s commission varies on both the commodities.

    While the central excise duty on diesel in Rs. 15.33 per litre (as of 04 October 2017), it is Rs. 19.48 per litre on petrol. Similarly, the state levied VAT in Delhi is Rs. 8.67 per litre on diesel, whereas on petrol it is Rs. 14.96 per litre. Further, there is Rs. 1.07 per litre difference on the dealer’s commission for both the fuels, making a litre of diesel Rs. 11.67 cheaper than a litre of petrol.

  3. What is diesel price made of?
  4. In addition to the basic price of the diesel, other components that would make up diesel price are the central and state government taxes, OMCs and dealer’s profit margins and transportation charges.

  5. Why is diesel price different in different states of India?
  6. While the central excise duty remains same across all the Indian states, the VAT is something that differs from state to state. For example, with Delhi government charging 16.75% VAT, the price of a litre of diesel in Delhi is Rs. 58.68, whereas with 24% VAT in Mumbai, it costs little higher at Rs. 62.33 per litre in the financial centre.

  7. Why does diesel price vary from one pump to other?
  8. It’s mainly because of the cost of transportation and cost of running the fuel station involved. If the petrol pump is located close to the supply plant, the cost of transportation is less and hence the pump charges a lesser rate than other pumps which are located far from the supply plant. Also the maintenance cost of the pump including the salaries, rent and utilities would affect the pricing of the diesel at each petrol pump.

    Also there is a price variation from one company pump to another, that is HP charges a different rate than its competitors IOCL and BP and vice versa.

  9. Who control diesel prices in India?
  10. The government of India used to regulate diesel prices till October 2014. From 19 October, diesel prices are linked directly to the international crude prices, hence they are being decided by the respective OMCs.

    Each OMC prices diesel differently based on the transportation and other charges included, it is then up to the dealer to add other costs involved to run the pump as well as to supply the fuel, which finally adds up to the selling price of diesel.

  11. Who are the major players in petroleum and diesel industry?
  12. Three oil marketing companies (OMCs) including Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) control more than 90% petrol pumps in India. Majority of the shares in the three companies are owned by the government of India.

    The other private players who occupy a marginal market share include Shell, Reliance and Essar.

  13. What is fuel surcharge?
  14. Each time a credit/debit card is swiped, a certain percentage of the transaction will go to the card issuing company as transaction fees. The fee is typically 2-3% of what the consumer pays and is usually absorbed by the merchant or the store where the purchase is made.

    When it comes to petrol transactions, the fee should be ideally borne by the petrol pump dealers. However, as fuel businesses operate with little profit margins, the transaction fee is being passed to the consumers. Hence, the fee charged in addition to the actual fuel charge is called the fuel surcharge.

    Whenever you swipe a card to purchase fuel, you will be charged with a fuel surcharge, along with the service tax levied on the surcharge.

  15. What is fuel surcharge waiver on debit cards?
  16. In a move to promote digital payments post demonetisation, the government waived the fuel surcharge asking banks to stop levying surcharge on fuel transactions made through debit cards. The charge will neither be borne by the pump dealers but will be recovered by the card issuing banks from the OMCs, as per the Reserve Bank of India’s directive.

  17. What is fuel surcharge waiver on credit cards?
  18. As credit cards still attract fuel surcharge, many banks have been offering cards with fuel surcharge waiver benefit. Customers using the card can avail either a complete fuel surcharge waiver, or a waiver within a certain limit per transaction or with a cap per month, depending upon the type of card and the issuing bank.

    One thing to note here is you will still be charged with service tax levied on surcharge.

    For instance, if you purchase Rs.1000 worth petrol using your credit card, you have to pay:

    Rs. 1000+ fuel surcharge (2.5%) + tax on surcharge

    = Rs. 1000 + Rs. 25 + Rs. 3.63 = Rs.1028.63

    When your surcharge is waived, you have to pay the bill amount plus the tax, which is

    = Rs. 1000 + Rs. 3.63 = Rs. 1003.63

    *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.

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News About Diesel Price in India Google Play

  • Diesel gets costlier by Re.1 in Kolkata

    Oil Marketing Companies (OMCs) on Wednesday hiked the rates of diesel by Re.1 in Kolkata. However, in the other metro cities of the country, the rates were kept unchanged. Diesel in the four metro cities of the country i.e., Delhi, Mumbai, Chennai and Kolkata were sold for Rs.64.66, Rs.67.66, Rs.68.26, and Rs.67.40 respectively as of Wednesday.

    The rates of diesel in the country have been declining of late due to a fall in the international oil prices and the appreciation of rupee. It needs to be mentioned here OMCs fix the prices of diesel by taking into account global rates of benchmark fuel and the rupee-dollar exchange rate.

    It is noteworthy to mention here that the prices of Brent crude have been hovering around 60-62 dollars per barrel in the last week and the rupee has fallen to the levels of 72 against the US dollar.

    13 December 2018

  • Oil Prices Not Election Key to Indian Equity Market, Says Expert

    From the middle of September to the first few days of October, crude oil prices were unstoppable, as they gained day-on-day to make fuel highly expensive for over a billion Indians. Crude prices went from their usually sub-$70 per barrel to over $80 per barrel during this tumultuous period where the government faced a lot of flak from both the opposition and the Indian consumers.

    Concerns over retail inflation also rose as fuel prices hit Rs.90 per litre in some key markets in the country. However, Christopher Wood, MD and Chief Strategist of CLSA has said that oil prices were the key concern if Indian equity was to continue on its developmental path.

    Mr. Wood spoke during the 21st India Forum and said that most analysts expect the 2019 election to turn the tide for the equity market. However, he said that it was crude oil prices that was going to challenge India’s commitment to growth all along.

    There was some evidence even as some of the major companies in the nation saw its stocks fall as oil became expensive while other issues also began to slow down the economy and also contributed largely to the rupee’s fall.

    19 November 2018

  • Diesel and Petrol Prices Continue to Decline

    The state-run oil companies such as Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited have declined the prices of diesel and petrol on Friday, 2 November 2018. The price of petrol in Delhi, the national capital, has slid by 19 paise per litre at Rs.79.18. The price of diesel has slid by 14 paise per litre at Rs.73.64. In the financial capital, Mumbai, the price of petrol was down by 18 paise per litre at Rs.84.68 whereas the price of diesel was down by 14 paise per litre at Rs.77.18. The common people were given some relief by making the fuel prices cheaper last month.

    5 November 2018

  • Post Protest Against Chief Minister of Gujarat, Congressmen in UP Protest Against Rise in Price

    Congress leaders in Uttar Pradesh on the 16th of October, 2018 had accused the Prime Minister of Gujarat for the rising prices of fuel in the state and for not taking any action against it. The people involved in the protest visited around 6 petrol pumps in the city including the petrol pump in Hazratganj where they blackened the poster of Prime Minister Narendra Modi.

    First, the petrol pump in Jankipuram was vandalised where they blackened a portion of the hoarding which had the face of the Prime Minister. After which petrol pumps in Aliganj, Mahanagar were visited, and in the one near the General Post Office, the protestors painted the face of Narendra Modi in black.

    OP Singh, the Director General of Police, has taken the matter seriously by warning the Lucknow Police as they had previously failed to charge and make arrests for the act. Previously, the Congressmen had accused the Chief Minister of being responsible for the attack on the North Indians living in Gujarat eventually forcing them to migrate. The protestors had agitated by showing black flags and by burning the effigy of the Chief Minister of Gujarat. Black balloons were released too.

    24 October 2018

  • Petrol and Diesel Prices Hiked Again

    Petrol and diesel prices continued to rise burning holes in the pocket of the common man, reflecting no sign of decline in the coming days. On Sunday, petrol is being sold at Rs.82.72 per litre, while diesel costs Rs.75.38 in Delhi. In Mumbai, petrol is available at Rs.88.18 per litre and diesel is being sold at Rs.79.02 per litre. Similar hikes were witnessed in Kolkata and Chennai. A litre of petrol in Kolkata costs Rs.84.54 and Rs.85.99 in Chennai. Diesel costs Rs.77.23 per litre in Kolkata and Rs.79.71 a litre in Chennai. Despite the reduction in the excise duty by the Central government of Rs.2.50 per litre on both petrol and diesel, the current levels are nearing the rates prior to the cut in the Centre levied excise duty. The increase in petrol and diesel prices are influenced by the significant incline in the international crude oil price along with a weaker rupee. The new prices are effective from 6:00 am IST. Fuel prices are revised daily by State-oil companies by taking into account the global crude oil price and the exchange rate of the rupee over the US dollar.

    16 October 2018

  • Fuel Prices Extend to Move Upwards

    Fuel marketing companies, Bharat Petroleum, Hindustan Petroleum and Indian Oil, have continued to increase petrol and diesel prices under dynamic fuel pricing today. The revised diesel price per litre today is Rs.72.83 in Delhi, which is the capital city of India. Oil marketing companies soared diesel price per litre by 22 paise in Delhi. At Indian Oil petrol stations, a litre of diesel is retailing at Rs.77.32 in Mumbai, which is the capital city of Maharashtra.

    On Monday, 10 September 2018, the Congress Party has called a Bharat Bandh in order to protest against prime issues such as an increase in fuel rates, continually falling Indian currency against the base currency and the implementation of Goods and Services Tax on diesel and petrol. The bandh has been supported by 21 regional parties across the country.

    11 September 2018

  • Every Litre of Diesel Costs Rs.68.78 in the National Capital

    Even though international crude oil prices continued to rise with every passing day, Oil Marketing Companies (OMCs) in the country cut the prices of diesel in the country. The rates of diesel for every litre was cut by 6 paise in all the four metros of the country, i.e Delhi, Mumbai, Chennai and Kolkata. Following the cut in the prices, every litre of diesel costs Rs.68.78 in Delhi, Rs.73.02 in Mumbai, Rs.72.65 in Chennai and Rs.71.62 in Kolkata. It needs to be mentioned here that the prices of diesel had gone up by 0.88 paise per litre in nine days as the international rates soared. On the global front, Brent crude oil futures and US West Texas Intermediate (WTI) futures were up by 26 cents and 32 cents respectively as per a Reuters report.

    The prices of petrol and diesel are revised in the country on a daily basis as part of the dynamic fuel pricing scheme. The scheme was adopted by the state-owned oil companies in the month of June last year after dumping the 15-year old practice of revising petrol and diesel rates on the 1st and 16th day of every month. The scheme was adopted to ensure that OMCs can pass down the benefit drawn courtesy the smallest change in international oil prices to the consumers as well as dealers.

    20 August 2018

  • Diesel to Retail at a Price of Rs.68.50 per litre in the National Capital

    Today, 8/8/2018, diesel price increased by 6 paise per litre to Rs.68.50 in the national capital of India, according to state-run oil marketing companies. In Delhi, fuel prices are lower compared to other metro cities such as Mumbai, Kolkata and Chennai. Diesel prices increased by 88 paise per litre over the last nine days. On 29 May, the price of diesel breached an all-time high at Rs.69.30.

    When it comes to the revision of fuel prices, dynamic fuel pricing is currently used by Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL). Both crude oil prices and the exchange rate create a base for revising diesel and petrol prices on a daily basis. Dynamic fuel pricing makes fuel pricing completely transparent and provides benefits to fuel consumers and oil marketing companies.

    Sales tax and excise duty are imposed on diesel. Sales tax or Value-added Tax differs amid Indian states, while excise duty remains unchanged across the nation. As on 08 August 2018, excise duty on diesel per litre was Rs.15.33. In India, Telangana imposes the highest sales tax of 26%. Similarly, Nicobar and Andaman islands have the lowest sales tax of 6% as on the same date. Between November 2014 and January 2016, the Central Government increased the excise duty on diesel per litre by Rs.13.47.

    14 August 2018

  • ONGC to Invest in Deepwater Projects

    Oil and Natural Gas Corporation is now following a two-fold stratagem of thrusting the projects of deepwater and investing into the production of gas through unusual means since the costs of lower upstream offer a chance to trigger progress. Shashi Shanker, which is the managing director and chairman at Oil and Natural Gas Corporation, said “The recent reforms that have been taken place in the oil and natural gas sector will provide opportunities.

    He further said “It is an ideal time to block in the cost savings owing to the cost deflation in the service segment. This is very important for the expansion of the Krishna-Godavari offshore lands. ONGC is producing a renewal in fabrication. This company will account for 70% of the gas and oil throughput in the country. It is also planning to spend $4 billion yearly in order to increase the speed of upstream projects.”

    “The problem for the stakeholders in the energy industry is high reliance on imports. The situation can be mitigated via higher indigenous fabrication. Our company was belligerently investing into deep water projects,” he further added.

    6 August 2018

  • Check out Diesel Rates as on 30th July 2018

    Diesel prices were also increased on Monday, 30 July 2018 across the country. They were up by 13 paise per litre in Delhi, the capital city of India, and 14 paise per litre in Kolkata, the capital city of West Bengal; Mumbai, the capital city of Maharashtra; and Chennai, the capital city of Tamil Nadu. The Organisation of the Petroleum Exporting Countries (OPEC) agreed to enhance the fabrication of unrefined oil in a meeting organised last month.

    On Monday, unrefined oil rates exhibited a mixed reaction. By 0309 GMT, US West Texas Intermediate (WTI) crude futures were increased by 0.2% at $68.84 per barrel. On Friday, WTI reduced by 1.3%. The prices of non-branded diesel stood at Rs.67.75 a litre in New Delhi, Rs.70.51 a litre in Kolkata, Rs.71.93 a litre in Mumbai and Rs.71.55 a litre in Chennai.

    2 August 2018

Diesel Price In Metro Cities
Diesel Price In Other Capitals
Diesel Price In Other Major Cities
Diesel Price In States
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