Diesel Price in Jabalpur
Diesel is a highly demanding fuel in Jabalpur, a famous city in Madhya Pradesh. It is consumed largely by motorists and industries. Diesel price in Jabalpur has touched a price offer of Rs.70 a litre as of 15 May 2018. The demand and price of diesel are not interlinked unlike other products completely. Usually, when the demand for a particular product accelerates, the product also gains its market price. This concept cannot be applied to diesel, which is extracted from crude oil. India also purchases crude oil or unrefined oil from other economies. Thus, the pricing and restructuring of diesel prices in Jabalpur are impacted majorly by overseas considerations.
Fuel Brands in Jabalpur
The fuel sector in India is dominated by Bharat Petroleum, Indian Oil and Hindustan Petroleum. They convert unrefined oil into diesel, which is marketed through distribution centers throughout the country. Jabalpur is a well-connected city as far as distribution centers are concerned. These centers will function for a fixed percentage of commission. The fuel rate in Jabalpur provided at IOL differs from other two fuel companies. It is because of two aspects:
- Carriage Costs and
- Commission for Dealers.
The city of Jabalpur also has a few marketing points managed by Shell Oil and Reliance Industries.
|Also Know: Diesel Price in Madhya Pradesh|
Revision of Diesel Prices in Jabalpur
This section is extremely important from the viewpoint of fuel buyers. Now, dynamic fuel pricing is being used by HPCL, IOCL and BPCL in order to price the fuel. On a daily basis, the new rate is confirmed by the fuel retailers in the city under the current fuel pricing approach. There are three possibilities. If there is no noticeable fluctuation in global aspects, the same price can be prolonged. But, if there is a big difference observed in overseas considerations, diesel is priced accordingly.
Dynamic fuel pricing is the next version of the previous fuel pricing approach. A few advanced economies like Australia and the USA have been utilising this approach for so many years. The system has been in use since June 2017 in India. There is no big difference between the current and earlier fuel revision methodologies. They differ in terms of the regularity of revision and are based on the present market value of unrefined oil and the rupee-dollar conversion rate.
Why Dynamic Fuel Pricing?
Dynamic fuel pricing was actually needed in our country like other developed countries. The benefits of this system are enormous. It is advantageous not only to fuel customers but also to fuel retailers. Unlike earlier, no price changes can influence the supply of diesel in all parts of Jabalpur. Consumers expect the pricing of the commodities they are willing to buy should be totally apparent. It is absolutely true with respect to diesel. A rate drop in crude oil expenditures is quickly transferred to final buyers.
Customised mobile applications to Track Today’s Diesel Price in Jabalpur
Are you a customer of IOCL? If yes, be instructed to download Fuel@IOC, which is a completely individulised mobile app designed by Indian Oil. It offers attractive features and is presently used by many customers. HPCL also has a good amount of customers, who are notified to make use of My HPCL. Like Fuel@IOC, even My HPCL is customer-friendly. The customers of Bharat Petroleum may consider using SmartDrive. All are easily downloadable. If you don’t have a smartphone, you can use SMS services to get the latest diesel price in Jabalpur.
Process Followed to Assess Diesel Price in Jabalpur
Who will price the fuel? The fuel is priced by the Oil Marketing Entities, which keep on adding the costs incurred at every level. Let’s understand the process followed to evaluate the current fuel price in this city. Crude oil will be imported by paying the price, which is called the cost price of crude oil. In May 2018, the cost price of unrefined oil was $67 per barrel.
Crude oil will be turned into diesel at refinery centers. The expenses spent to convert unrefined oil into diesel is called refinery transfer fees. This is another vital cost aspect. Taxes are further added. There are two kinds of taxes levied on diesel: Value-added Tax and excise duty. According to PPAC, at 22.23%, the VAT was collected on diesel in Jabalpur per litre. In February 2018, the excise duty was revised to Rs.15.33 on diesel per litre. In simple words,
Diesel rate in Jabalpur = crude oil rates + pollution cess (25p as of May 2018) + Taxes (central and state levies) + commission collected by dealers
Why do Diesel Prices in Jabalpur Change?
Diesel is priced differently every day. For instance, if the US dollar weakens against the Indian rupee, the fuel loses its price. If the USD appreciates against the domestic currency, the fuel will gain its price. The value of the INR versus the greenback relies on several considerations such as inflation, exports, interest rates, imports, etc. When there is an up in crude oil overheads, fuel rates are enhanced. If there is a downfall in crude oil overheads, fuel prices are decreased by the fuel brands.
Taxes play a significant role. Diesel price in Jabalpur was lowered by Rs.2 per litre in October 2018 because of a cut in the central tax. If there is a drop in the central tax, the fuel rate will be decreased by the fuel companies. On the other hand, if there is a rise in the central tax, the fuel entities will enhance the fuel rate. Similarly, the revision of diesel rate in Jabalpur will be done considering the element of Value-added Tax.
Influence of GST on Diesel Price in Jabalpur
Goods and Services Tax has no impact on diesel and petrol prices. GST has not been imposed on petrol and diesel unlike other products. The Central Government of India is not interested in bringing petrol and diesel under the framework of the present tax mechanism since this decision is not in its favor.
*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.