Diesel Price in Jalgaon
Located at the north-west part of Maharashtra, the city of Jalgaon is close to the world famous Ajanta Caves. Rich with volcanic soil, the region of Jalgaon is favourable for cotton cultivation and is home to one of the world’s largest pulse or dal milling centres. Jalgaon is well-connected by road, rail and air to some of the major cities of the country. With a population of nearly 7 lakh, Jalgaon is served by several means of transportation system including state-owned buses as well as taxis and auto rickshaws.
The city is also has a high density of two-wheelers and four-wheelers which account for the major part of Jalgaon vehicular traffic. The fuel consumption in the city, especially diesel, is expected to be high with most of the public transportation system depending on diesel.
|Also Know: Diesel Price in Maharashtra|
With a burgeoning population, the transportation requirement has increased proportionally. State-owned oil companies such as Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) operate nearly 90% of the fuel stations in the city.
|Also Know: Petrol Price In Jalgaon|
Influencers of Diesel Prices in Jalgaon
Like other cities of the country, the diesel rate in Jalgaon is influenced by two major factors - international and domestic. Below is a detailed analysis of both the factors to understand how the diesel price in Jalgaon is computed.
- International Factors: State-owned fuel companies purchase crude or unrefined oil from oil-producing countries before it’s refined and sold in the country. The Oil-marketing companies (OMCs) pay the Indian Basket price for a barrel of crude oil and this forms the base price of diesel. However, the crude oil prices are not constant and change due to several reasons. These reasons include any change in the demand and supply pattern, production cuts by oil-producing countries, seasonal variations, etc. With India importing more than 70% of crude oil, any changes in the global crude oil price directly impacts the diesel price in Jalgaon and in other cities in the country. The other main international factor which influences the diesel rate in Jalgaon is the exchange rate of the US dollar. India purchases crude oil typically in US dollars and any variations in the dollar rate affect the diesel price. For instance, if the US dollar value increases, the fuel price increases as well and any decline in the value depreciates the diesel rate.
- Domestic Factors: The biggest domestic factor which influences the diesel price in Jalgaon are the taxes levied by the Central and the State. While the Centre charges excise duty, the states levy Value Added Tax (VAT) on diesel and petrol. The excise duty is uniform across the country with a rate of Rs.15.33 for a litre of fuel, the VAT varies according to the State. Maharashtra charges VAT at 21.97% for a litre of diesel sold in the city. Any changes to the excise duty or the VAT affects the diesel rate in Jalgaon. Apart from taxes, diesel prices are impacted by the other domestic factors such as the profit margins of the oil-marketing companies and the dealer commission. While the OMCs take a cut for refining the crude oil and transport it dealers across the country, dealers maintain the fuel station, store and dispense fuel to the end consumer.
How are Diesel Prices in Jalgaon Calculated?
In Jalgaon, diesel prices are calculated by adding the crude oil price including freight charges, the refinery transfer price (RTP), excise duty and the VAT, dealer commission, and OMCs profit margin. Below is a table with the breakup of the diesel pricing in Jalgaon.
|1||International crude oil price + freight charges||$72.50 per barrel = Rs.31.17/Litre (considering $1=68.36 and 1 barrel oil = 159 litres)|
|2||Profit margin of OMCs, transportation, refining and freight charges||Rs.8.61/Ltr|
|3||Central Excise Duty||Rs.15.33/Ltr|
|5||Value Added Tax (VAT)||Rs.17.65/Ltr|
|Total||Retail selling price of diesel in Karur||Rs.70.30/Ltr|
When Does the Diesel Price change in Jalgaon?
Until 16 June 2017, diesel rates were revised on a fortnightly basis. The diesel price was revised on the 1st and the 16th of every month taking into the average cost of the crude oil and the exchange rate of the US dollar. However, this did not let OMCs change the fuel price in case of a sudden surge in the price for a barrel of crude oil. Presently, diesel prices are changed on a daily basis to offset any increase or decrease in the unrefined oil.
Hence, the diesel price in Jalgaon is changed every day at 6 a.m. IST by taking into account the previous day’s unrefined oil price and the US dollar exchange value, the new pricing method is called ‘dynamic fuel pricing’. Under the new pricing mechanism, automated petrol pumps are updated automatically, while non-automated stations are updated manually.
Diesel Price Vs. Petrol Price in Jalgaon
Like other cities, diesel price is lesser than the rate of diesel. This is because of the cost incurred in the refining process as well as other operational costs. Apart from the operational costs, the taxes on diesel is much lower than that of petrol. With most of the public transportation system and commercial vehicles depending on diesel, the taxes on diesel are much lesser.
In April 2018, the average difference between diesel and petrol rates in Jalgaon is Rs.13.68 per litre with the average diesel rate at Rs.69.14 per litre and petrol at Rs.82.82 per litre. While the excise duty on diesel is Rs.15.33 per litre, petrol attracts Rs.19.48 per litre. As for the VAT levied by Maharashtra, the State Government charges the VAT at 21.97% for diesel and 38.93% for petrol.
How to Track the Current Diesel Price in Jalgaon?
With the diesel price revised every day, it becomes quite challenging to know the current fuel price in a city. However, OMCs have developed new methods of tracking diesel and petrol price in a city. Customers can take advantage of mobile apps, SMS service, online portal or website, at the fuel station, or simply call the customer care of the particular OMC.
For customers filling fuel at IOCL fuel stations, they can download and install the ‘Fuel@IOC’ app to get the current diesel price, BPCL customers can utilise the ‘SmartDrive’ app, while HPCL customers can take advantage of the ‘MY HPCL’ mobile app.
Customers can also track the daily price of diesel through the SMS service offered by the OMCs. Below is the process to receive the diesel price in Jalgaon.
- IOCL: Type RSP
dealer code and SMS to 9224992249.
- HPCL: Type HPPRICE
dealer code and SMS to 9222201122.
- BPCL: Type RSP
dealer code to 9223112222.
Additionally, OMCs update their respective websites with the current fuel price in Jalgaon as well as other cities in the country.
Goods and Service Tax (GST) on the Diesel Price in Jalgaon
India moved towards a new taxation regime for all commodity trading and services known as the Goods and Service Tax (GST). However, GST is not applicable on diesel and petrol. The Indian Government has kept petroleum products away from the framework of the GST. The highest tax slab in the GST is 28% which is lower than the current taxes levied on diesel and petrol. By bringing diesel under the ambit of the GST will affect the revenue generated towards the Central and the State’s exchequer. Presently, the GST is not applicable on diesel retailed in Jalgaon.
Also Check Diesel Price in NearBy Cities of Jalgaon
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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.