Diesel Price In Jammu And Kashmir Today

Daily Diesel Rates
Date Diesel ( / liter)
16 Dec 2018 ₹ 65.84
15 Dec 2018 ₹ 65.84
14 Dec 2018 ₹ 65.84
13 Dec 2018 ₹ 65.93
12 Dec 2018 ₹ 65.93
11 Dec 2018 ₹ 65.93
10 Dec 2018 ₹ 66.13
09 Dec 2018 ₹ 66.86
08 Dec 2018 ₹ 66.86
07 Dec 2018 ₹ 66.86

Diesel Price in Jammu and Kashmir

Here, we make a deep analysis of diesel prices in Jammu and Kashmir, a north Indian state. We also discuss the impact of the recent developments such as GST and dynamic fuel pricing on the fuel industry in India. Unlike other states, the state of Jammu and Kashmir has two capitals: 1) Srinagar, the summer capital of the state; and 2) Jammu, the winter capital of the state. All the government offices will be shifted to Srinagar from May to October every year. Similarly, the state administration will be shifted to Jammu from November to April every year. It is because of the fact that the temperature in Srinagar will fall below the freezing point during the winter. Diesel price also differs in these two cities.

Also Check: Diesel Price in Srinagar

A Comparative Study of Diesel Price in Jammu and Kashmir

As on 1 January 2018, diesel was sold at Rs.60.72 a litre in Jammu and Rs.62.94 a litre in Srinagar. By the end of June 2018, diesel rate in Jammu increased to Rs.68.55 a litre and Rs.70.77 a litre in Srinagar. It means diesel rate in Jammu and Kashmir has gone up by Rs.8 per litre from January 2018 to June 2018 in tandem with the crude oil cost. The highest rate for the first six months of 2018 stood at Rs.72.58 a litre in Srinagar and Rs.70.36 a litre in Jammu. Market watchers have predicted fuel rates in Jammu and Kashmir will upsurge slightly.

Dynamic Fuel Pricing in Jammu and Kashmir

Across the state, diesel rates are revised under dynamic fuel pricing today. Dynamic fuel pricing is one of the biggest changes adopted by state-owned fuel enterprises such as Indian Oil (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL). It significantly impacts the pricing of both petrol and diesel and provides extensive benefits to oil marketing companies (OMCs) and fuel consumers. Under this mechanism, the price of diesel per litre is revised on a daily basis considering the cost of unrefined oil per barrel and the USD/INR translation rate. All the automated and non-automated diesel distribution stations in the state will announce the revised fuel rate at 06:00 a.m.

Prime Attributes of Dynamic Fuel Pricing

  • 100% transparency in fuel pricing
  • A global fuel pricing mechanism
  • Promotes automation drive for fuel companies
  • Avoids huge variations in diesel rates
  • Transmits even the smallest variations to diesel users in each part India

Tips for Obtaining Today’s Diesel Price in Jammu and Kashmir

  Mobile application SMS service Online
Indian Oil Fuel@IOC, a mobile application developed by IOCL, helps you get the current fuel rate in your city. Send an SMS in the following format: RSP DEALER CODE to 9224992249 Visit the website https://www.iocl.com/ to find the latest fuel price.
Hindustan Petroleum Download and use My HPCL, a mobile application developed and provided by Hindustan Petroleum. Forward an SMS in the following format: HPPRICE DEALER CODE to 9222201122 Visit the website http://www.hindustanpetroleum.com/ to obtain the current fuel price.
Bharat Petroleum Get the latest diesel rate offered in your locality by downloading SmartDrive. Send an SMS in the following format: RSP Dealer Code to 9223112222. Get today’s diesel rate in Jammu and Kashmir by visiting https://www.bharatpetroleum.com/

Steps Followed to Compute the Actual Cost of Diesel per litre in Jammu and Kashmir

Both diesel and petrol rates in India were fixed once a year in 80s and early 90s like the Indian Government presents its budget annually. India used the fortnightly-based system to fix fuel rates until June 2017. Under the fortnightly-based revision, there used to be big lapses in fuel rates. Therefore, it was decided to introduce the system of dynamic fuel pricing in the country to reduce the lag period to one day from 30 days. Diesel price in Jammu and Kashmir is computed in the following steps:

Step 1: Computation of crude oil per litre

Like discussed in the earlier section, the exchange rate and the cost of unrefined oil per barrel are required to compute the cost of a litre of unrefined oil. For instance, if the exchange rate of the USD against the INR is Rs.66 and the crude oil rate per barrel is $70 on 20 June, the cost of a litre of crude oil on 21 June will be Rs.29.05 (66X70/159).

Step 2: Computation of OMC expenses

Now, we have to add the total amount of overheads spent by oil marketing companies. OMC expenses cannot be the same on petrol and diesel. As on 3 June 2018, on diesel per litre, the overall amount of expenses incurred by fuel companies such as IOCL, BPCL and HPCL stood at Rs.10.

Step 3: Imposing taxes

Taxes are an integral part of diesel price in Jammu and Kashmir. They include Value-added Tax and excise duty. In India, diesel is a subsidised fuel since it is used by agriculturists. In other words, in Jammu and Kashmir, the taxes on diesel are lower compared to the taxes on petrol. On diesel per litre, excise duty and VAT stood at Rs.15.33 and 17.12% in the state.

Step 4: Commission for dealers

In each city, diesel is supplied through fuel dealers who are paid a fixed percentage of commission. As on 3 June 2018, the dealer’s commission on diesel per litre was Rs.2.53. This commission may be revised if needed.

Diesel rate in Jammu and Kashmir = Taxes + Crude oil rate + Pollution cess + OMC expenses

Factors Affecting Fuel Rates in Jammu and Kashmir

1. Exchange rate

An exchange rate is taken into account for overseas transactions. Buying crude oil is also an international transaction. So, the exchange rate of the Indian rupee against the USD makes a huge difference. When the USD gains against the INR, the crude oil rate will fall. On the other hand, if the USD depreciates against the domestic currency, which is the INR, the price of unrefined oil will increase. Any changes in the USD/INR exchange rate will affect domestic fuel prices in the end.

2. Taxes

Like other commodities, tax is also imposed on diesel. In this state, a diesel buyer pays excise duty and VAT. The Central Government regulates the imposition of excise duty whereas VAT is charged by states. Excise duty has been changed several times by the BJP Government. If the government decreases or increases excise duty, diesel prices should be adjusted accordingly. For instance, when excise duty was declined by Rs.2 per litre in October 2017, the price of diesel per litre was also cut by Rs.2 per litre across the country.

VAT differs in each city. Thus, the price of diesel changes among Indian cities. Let’s consider a few Indian states to make a comparative analysis of VAT. As on 1 April 2018, on diesel per litre, VAT was imposed at 28.60%, 12.50%, 22.71%, 18.28%, 25.81% and 17.28% in Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh and Delhi respectively. It was imposed at 17.12% in Jammu and Kashmir. Here, we observe a difference. Because of this difference, diesel prices in Srinagar and Jammu will differ from other cities such as Bangalore, Mumbai, Delhi, Ahmedabad, Ranchi, etc.

Impact of GST on Diesel Price in Jammu and Kashmir

Presently, Goods and Services Tax (GST) is charged at 5%, 12%, 18% and 28%. It is governed by the GST Council, which has not included diesel for tax purposes. Diesel has been kept outside the GST framework to keep the revenues unaffected. You may expect the inclusion of diesel under GST in the future.

*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.

News About Diesel Price In Jammu And Kashmir

  • Owing to Fall in Crude Oil Price, Sensex Ends up 160 points

    The Indian economy has received some kind of a boost after a drop in the international crude oil price. This has also lured the foreign investors back to the country. On Tuesday, the major equity indices advanced for the second straight session. The Sensex closed at 35,513.14 points, which is a growth of 159.06 points or 0.45 per cent from its previous close. On the other hand, after a gain of 57.00 points or 0.54 per cent from its previous close, The Nifty50 closed at 10,685.60 points.

    Also, after the Centre announced on Monday that it would pump Rs.42,000 crore by March for the debt-laden banks, the Nifty PSU Bank Index gained 1.15 per cent.

    While the prices of crude oil traded at $60.24 per barrel, the rupee shot up to 70.74 per US dollar against its previous close of 70.87. There has been a drop of over 30% in the price of crude oil since its 4-year high on 3rd October. This has caused a drop in the prices of petrol and diesel in India who us the third highest importer of crude oil.

    7 December 2018

  • Another Drop in Fuel Prices

    On Sunday, there was another slight drop in the prices of petrol and diesel in the four metro cities in the country. The revised prices of per litre of petrol and diesel in Delhi are Rs.77.73 and Rs.72.46 respectively. The new price of petrol in Mumbai is Rs.83.24 per litre and that is diesel is Rs.75.92 per litre.

    In Kolkata, petrol is being retailed at Rs.79.65 per litre and diesel is being retailed at Rs.74.32 per litre. For Chennai, the current prices of petrol and diesel are Rs.80.73 and Rs.76.59 respectively.

    The continuous drop in the prices of fuels is because of several factors such as a drop in the cost of international crude oil and the recovery of the Indian rupee against the USD. In the month of October, the central government, in order to curb the sharply rising fuel prices, had introduced a reduction of Rs.2.50 on the prices of per litre of petrol and diesel. It should be noted that fuel prices vary across the country because of varying local taxes since fuel is excluded from GST. The domestic prices of fuels vary on a 15-day average depending on the international prices

    14 November 2018

  • Fuel Price Hike Causes a Lot of Outrage among the Public

    Fuel prices have reached plenty of new highs over the last month and has broken all the records seen for the last four years. In Jalandhar, where petrol prices have hit Rs.89.27 per litre, and diesel has hit Rs.74.98 per litre, the locals have began to feel the pinch of the incessant rate hikes. The petrol and diesel price increases have also cased LPG prices to go up, as local agencies have began hiking rates up considerably.

    Commuters in the town as well have now felt the ill-effects of the fuel rate hike, and are turning against the Narendra Modi government over the supposed ill-handling of the issue.

    Private buses in the city to have added more than Rs.20 to 30 to their fare list for tickets to the neighbouring cities. Schools have also increased the fee for the use of buses, and this has overall affected monthly expenditure of families.

    While letting their outrage be known, the locals have asked the government to bring down the fuel rates and also to decrease the excise duty so that prices can be brought down significantly.

    4 October 2018

  • The Government of Andhra Pradesh Reduces Fuel Rates by Rs.2 per litre since the Opposition Parties Join the Bharat Bandh

    Chief Minister of Andhra Pradesh, Chandrababu Naidu, declared a Rs.2 fall in diesel and petrol rates since the several opposition parties have joined the Congress Party to protest against the government. The revised fuel prices will be effective from Tuesday, 11 September 2018. The Chief Minister of Andhra Pradesh said the Central Government has made a good amount of money through imposing higher taxes on diesel and petrol. According to a senior official of the Commercial Tax Department said that the State Government presently imposes 31% sales tax and an additional tax of Rs.4 on a litre of petrol and diesel. The further levy has now been reduced from Rs.4 to Rs.2.

    During the Bharat Bandh Protest on Monday, 10 September 2018, the opposition party workers’ scores were taken into custody across the state of Andhra Pradesh. Left parties and Jana Sena extended their support to the Congress to protest the hike in diesel and petrol prices. Separate demonstrations were organised by the ruling Telugu Desam Party in order to protest the sheer rise in the rates of the products of petroleum.

    12 September 2018

  • Crude Oil Demand Growing More Slowly Than Expected In China and India

    Crude oil demand from China and India, Asia’s biggest importers, is growing at a slower rate than expected. The slower growth has exposed the weakness in two of the world’s largest economies and diminishing a key pillar of international fuel prices in the midst of trade tensions. Both the countries purchase a combined 12% of the world’s oil and since 2016, the two countries’ growth has enabled the drive in the recovery of crude oil rates. As per shipping data, the shipments during the month of July 2018 were nearly half a million barrels per day below their average of 12.4 million barrels per day during the January-June period. Despite inflated purchases ahead of possible US sanctions on Iran and incline in imports from Japan and South Korea as they cope up with record-setting heat waves, has resulted in dragging down the demand growth in Asia. Shipping data reveals annualised growth in demand from Asia’s largest oil importers such as China, India, Japan, South Korea, and Taiwan has fallen from more than 3.5% in 2016 to about 2% as of now.

    17 August 2018

  • Petrol Prices in Pune Have Increased by Rs.1 Per Litre

    Petrol and diesel rates are on an upward trend again, ensuring Pune and Mumbai continue to maintain their distinction of costliest cities when it comes to fuel rates in the country. While the petrol price has increased by over Rs.1, diesel rates have gone up by 90 paise per litre between 4 July and 4 August. The prices in Pune and Mumbai are high as both the cities have to pay an additional cost of nearly Rs.10 per litre of petrol as a litre of the fuel attracts Rs.3 towards drought cess, Rs.3 towards Krishi Kalyan cess, Rs.1 as education cess and an additional surcharge of Rs.3 towards the recovery of losses from the ban on liquor on highways in the State. Oil Marketing Companies state that the rise in fuel prices is attributed to the increase in crude oil prices in the global market and the rupee to US dollar depreciation. Petrol and diesel prices in Pune and Mumbai, like other cities, are determined by oil companies based on the global crude oil rate and the currency exchange value.

    6 August 2018

  • Fuel Prices Continue to Increase Irrespective of Falling Crude Oil Rates

    India has witnessed a steady hike in fuel prices over the last 5-6 months. It is a tough situation in the country. It is uncommon to observe that fuel rates have grown irrespective of a downfall in the price of crude oil in international markets. On Monday, the market for crude oil fell reasonably since the market observed a hike in the throughout from the globe’s three crude oil producers: Russia, the United States of America and Saudi Arabia. This situation is quite astonishing and can be controlled by the government machinery. The decision whether or not to bring petrol and diesel under GST is likely to be impacted by political considerations. It may seem that the government is falling short of plans to combat the increasing prices.

    29 May 2018

  • ASSOCHAM Appeals To Bring Diesel Under the Framework of GST

    The Associated Chambers of Commerce and Industry of India’s (ASSOCHAM) Secretary General D S Rawat appealed to bring diesel under the framework of the Goods and Services Tax (GST). He added that as a long-term solution to the surging diesel prices in India along with a weaker rupee, it would lead to an increase in India’s import bill significantly and will have a compounding effect on inflation. While a reduction in the Centre’s excise duty could provide a short-term relief to consumers, a sustainable solution lies in bringing diesel coming under the ambit of the GST. The Secretary-General of ASSOCHAM added that bringing diesel under the GST can happen only after the Centre and states reduce their dependence on diesel to bring revenue to their respective exchequer. He also said that in the long-term, India needs to change its energy security and make sure diesel does not remain a huge or the main source of revenue.

    21 May 2018

Diesel Price In Metro Cities
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