Diesel Prices in Indore
Make sure to check the diesel price before you fuel your vehicles. If you are an institutional consumer, even a minute change can mean a lot. You might have noticed that all oil marketing companies, which are Indian Oil, Bharat Petroleum and Hindustan Petroleum, have deployed a fresh fuel pricing system called ‘dynamic fuel pricing’ in order to revise fuel prices. This system is also called the daily revision, which has been in practice in India since 16 June 2017. After the daily revision, the diesel price per litre in Indore, the largest city in Madhya Pradesh, was Rs.60.27 on 8 November 2017. This price consists of global crude oil prices, taxes and OMC expenses.
|Also Know: Diesel Price in Madhya Pradesh|
Trends in Diesel Price in Indore (Diesel Price per litre)
So far this month, there is an upward trend as far as diesel prices are concerned. Diesel prices on 3, 4, 9,16, 24 and 30 October 2017 were Rs.65.69, Rs.63.27, Rs.63.36, Rs.59.32, Rs.59.54 and Rs.59.97 respectively. Similarly, fuel prices on 11, 19, 25 September 2017 were Rs.65.13, Rs.65.39 and Rs.65.25 respectively. On 1 April 2017, the fuel price was Rs.74.07 that increased to Rs.75.98 on 1 May 2017. On 1 June 2017, the last week of the fortnightly revision, the fuel was priced at Rs.74.76. On 1 July 2017, it reduced to Rs.69.72 due to the daily revision.
Comparison of Diesel Prices in Indore and Prime Indian Cities
In fact, diesel rates fluctuate from one city to another. It is because of the local tax imposed on the fuel by states. During the first week of November 2017, the fuel was sold at average price of Rs.59.00 in Bangalore, the capital city of Karnataka. In Chennai, the capital city of Tamil Nadu, during the same period, the average price of the fuel was Rs.61.20 and in New Delhi, the capital city of New Delhi, it was Rs.58.20. In Mumbai, the capital city of Maharashtra, the price was nearer to Rs.61.
State Levies on Petrol and Diesel – A Comparison among States
Petroleum Planning and Analysis Cell has unveiled the data on 04 October 2017. As per sources, the local taxes levied on petrol and diesel in Madhya Pradesh were 38.90% and 30.24% respectively. In New Delhi, petrol and diesel were taxed at 27% and 17.38% respectively. In Mumbai, the local taxes imposed on diesel and petrol were 28.41% and 47.94% respectively. Diesel is a highly subsidised product and thus, it is taxed less compared to petrol.
Quarterly Diesel Price Trend in Indore between July and September 2018
|Opening date price||Rs.71.24 a litre||Rs.71.62 a litre||Rs.74.07 a litre|
|Closing date price||Rs.71.53 a litre||Rs.74.07 a litre||Rs.78.55 a litre|
|Highest price||Rs.72.46 a litre recorded on the 16th||Rs.74.07 a litre recorded on the 31st||Rs.78.55 a litre recorded on the 28th, 29th and 30th|
|Lowest Price||Rs.71.15 a litre recorded on the 6th||Rs.71.62 a litre recorded on the 1st||Rs.74.07 a litre recorded on the 1st|
Diesel Price Trend in Indore in July 2018
- In Indore, diesel and petrol prices are revised on a daily basis under the dynamic fuel pricing mechanism by State-run Oil Marketing Companies (OMCs).
- Under this method, OMCs arrive at the retail price of diesel in Indore based on the global crude oil price and the exchange rate of the rupee over the U.S. dollar.
- Based on the dynamic fuel pricing mechanism, the diesel price in Indore on the 1st of July stood at Rs.71.24 per litre.
- On the 6th, diesel price in the city dropped to its lowest for the month when a litre of diesel was sold at Rs.71.15.
- However, it inclined immediately in the next couple of weeks to touch the highest diesel price in Indore on the 16th when it was sold at Rs.72.46 a litre.
- Prices declined in the third and fourth weeks but did not breach the opening price of the month in the city.
- By the end of the month, the diesel price in Indore stood at Rs.71.53 per litre, an increase of 29 paise compared to the opening price of the month.
- The diesel price trend in Indore for the month of July grew by 0.41% primarily influenced by the slight rise in the global crude oil price.
Diesel Price Trend in Indore in August 2018
- In accordance with the daily revision in fuel prices, oil companies hiked the diesel price in Indore by 9 paise per litre on the 1st of August when a litre of diesel was available at Rs.71.62. This was also the lowest diesel price recorded during the month.
- Prices of diesel continued to rise over the course of the first and second weeks in Indore as crude oil prices in the international market increased.
- The rise in oil prices is primarily due to geopolitical tensions between the U.S. and Iran as the former pulled out of the nuclear deal and was getting ready to impose sanctions on Iran.
- This led to a shortage in supply of oil in the market prompting the benchmark Brent crude prices to soar higher.
- During the third and fourth weeks, diesel prices moved upwards to touch the highest price on the 31st when a litre of diesel in Indore was sold at Rs.74.07.
- Overall, diesel prices in Indore during the month of August grew by 3.42% influenced by the incline in crude oil prices.
Diesel Price Trend in Indore in September 2018
- Prices were kept unchanged until the 2nd of the month when a litre of diesel in Indore continued to be sold at Rs.74.07 similar to the previous day. This was also the lowest diesel price registered in Indore for the month.
- During the first and second weeks, fuel prices in India rose significantly as crude oil prices touched a four-year high.
- The steep rise in the crude oil price coupled with the record low depreciation of the Indian currency over the U.S. dollar led the incline in fuel prices across the country.
- Certain states such as Karnataka, West Bengal, Rajasthan and Andhra Pradesh announced a cut in the local sales tax or VAT offering some relief to consumers.
- There was not let up in the rise in crude oil prices in the market as geopolitical tensions led to a shortage in the supply of oil.
- By the end of the month, the diesel price in Indore touched the highest when a litre was sold at Rs.78.55 on the 28th and was kept untouched until the end of the month.
- The diesel price trend in Indore in September inclined steeply by 6.05% impacted by the increase in crude oil prices in the market and the record fall in the Indian currency’s exchange rate over the dollar.
Quarterly Diesel Price Trend in Indore between April and June 2018
|Diesel price||Rs.68.17 a litre as on the 2nd||Rs.69.71 a litre as on the 14th||Rs.72.94 a litre as on the 1st|
|Diesel price||Rs.69.49 a litre as on the 24th||Rs.72.99 a litre as on the 31st||Rs.71.02 a litre as on the 26th|
|Highest price||Rs.69.49 registered on the 24th||Rs.73.06 registered on the 29th||Rs.72.94 registered on the 1st|
|Lowest price||Rs.68.17 registered on the 2nd||Rs.69.71 a litre registered on the 14th||Rs.71.02 registered on the 26th|
Diesel Price Trend in Indore in April 2018
- In April 2018, diesel prices moved upwards for same days and also travelled downwards for a few days. Interestingly, they were steady for some days of the month.
- It can be accredited to the fluctuating crude oil rate and the exchange rate. The revision of fuel rates across the country is impacted when the domestic influencers such as sales tax and excise duty are reset.
- But, in this month, both categories of taxes were steady. It can be eventually interpreted that the revision of diesel prices in Indore was impacted only by the exchange rate and crude oil rates.
- Like other cities in India, in Indore also, diesel rates were up in April 2018. Even though the domestic currency of India weakened against the USD, the pricing of diesel was not impacted much this month.
- The price, which was fixed on 01 April 2018, was the lowest fuel price whereas the highest fuel price for the month stood at Rs.68.17 in the city of Indore.
Diesel Price Trend in Indore in May 2018
- The revision of diesel prices in Indore, a prime city in Madhya Pradesh, was influenced by the Karnataka state assembly election held on 12 May 2018. No fuel rates were increased during the first 10 days of the month.
- Crude oil rates were on the rise throughout the month. In tandem with the crude oil rate, the fuel price was revised to Rs.69.71 a litre on the 14th, Rs.70.17 a litre on the 16th and Rs.69.71 a litre on the 19th.
- Compared to the previous week, the average fuel price in the city of Indore was higher for the fourth week.
- In this month also, the indigenous factors such as excise duty, the commission paid to dealers, sales tax and the overheads spent by the Indian OMCs remained untouched.
- Eventually, the price of diesel per litre in Indore increased only because of the crude oil price in May 2018.
- It was reported by Indian Oil that the highest diesel rate for the month stood at Rs.73.06.
Diesel Price Trend in Indore in June 2018
- Unlike the first two months, crude oil rates moved downwards throughout the month of June 2018. So, Indian Oil, Hindustan Petroleum and Bharat Petroleum commenced decreasing the price of diesel in the city.
- The fuel retailed at a price of Rs.72.94 a litre on 01 June 2018. The retail selling price decreased to Rs.72.70 a litre on the 4th, Rs.72.60 a litre on the 5th and Rs.72.45 a litre on the 7th.
- Considering the overseas elements, diesel prices in the city of Indore were also decreased during the third and fourth weeks of the month.
- In international markets, the average crude oil rate per barrel stood at $73.85 in June 2018. It was $75.31 in the earlier month.
- A slight downfall in the cost of unrefined oil per barrel caused the downward trend in diesel rates in Indore this month.
How are Diesel Prices in Indore Revised?
Indian Oil, Hindustan Petroleum, Bharat Petroleum and Shell Oil, which are the premier oil brands, have started revising fuel rates (diesel and petrol) on a daily basis since 16 June 2017 in Indore. This new fuel pricing mechanism is called dynamic fuel pricing that has also been adopted by Australia, the United States of America (USA) and Russia. Be advised to check the daily price since it is changing every day. In the first month of dynamic fuel pricing, the fuel prices have reduced marginally.
As mentioned in the previous section, the price revision is done based on two aspects, which include crude oil prices and the conversion rate of INR/USD. The biggest advantage of dynamic fuel pricing is that the daily variations in the exchange rate and the cost of crude oil can be passed on to end fuel consumers someone like you. In other words, consumers are linked to market dynamics. In the previous fuel pricing mechanism, fuel prices used to be updated twice a month, i.e., on 1 and 16 of every month.
Benefits of Dynamic Fuel Pricing
The Dynamic Fuel Pricing system has many significant advantages over the fortnightly revision. Consumers will pay the price, which is 100% transparent. Stock management is no more a daunting task from the stance of dealers. Cash management can be easier for them. The working capital, which is important for day-to-day operations, can be easily managed. The daily revision system aligns the Indian fuel retailing industry to overseas fuel markets.
How to the Current Diesel Prices in Indore every day?
Well, diesel customers from Indore can make use of the mobile applications offered by all the four oil marketing companies. Smartphone users can download the mobile application of their choice in order to check the current diesel price. Customers who are not using smartphones can make use of SMS alerts and customer support services offered by these companies. If not, they can also check online. Most people prefer downloading mobile applications for better accessibility.
How are Diesel Prices in Indore Assessed?
What are the elements of the retail selling price of diesel? Do you know? The diesel price remitted by you comprises of taxes, crude oil prices, refinery transfer fees, dealer commission, marketing and operational expenses incurred by oil marketing companies (OMCs), the profit margin of OMCs, the commission charged by dealers, freight charged and entry taxes incurred by OMCs and pollution cess. Among all these costs, crude oil prices are based on global economics. As on 4 October 2017, the central excise duty collected on diesel was Rs.15.33 per litre. The WTI Crude Oil price per barrel was $56.49 as on 8 November 2017.
Which are the Factors Affecting Diesel Prices in Indore?
The Retail Selling Price of Diesel will increase under the following circumstances:
- When the cost of crude increases globally
- When the INR, the currency of India, devalues against the USD, the currency of the USA
- When the taxes collected by both the central and state governments increase
On the other hand, the Retail Selling Price of Desel will diminish under the following circumstances:
- When crude oil rates decrease in transnational markets
- When the USD depreciates against the INR
- When the excise duty and local tax decrease
GST vs Diesel Prices in Indore
As we all know, the Goods and Service Tax (GST) is the biggest tax reform in India. It is imposed on all categories of services and commodities at four tax rates: 5%, 12%, 18% and 28%. Diesel and petrol do not come under the purview of GST. Therefore, the new tax regime does not impact diesel prices. It may be levied on diesel in the future by revising the existing rates. Even though diesel is taxed at 28%, which is the highest GST rate, the diesel price will dampen by a big margin. As a result, the government loses the major source of revenue.
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