Diesel Price in Jammu
Diesel price in Jammu, the largest city in north-western Indian, is made-up of various elements, both domestic and international. A few elements affect diesel price in the city on a daily basis, while some others may not show continues affect. In whichever case, diesel rate in Jammu, just like in other Indian cities, changes on a daily basis. Continue reading to know why the price changes every day and how the price is computed.
Various Elements of DieselPricing in Jammu
Diesel pricing in Jammu, just like in any other Indian cities, is composed of various domestic and international elements. International elements include crude oil price in the global market and Indian rupee to dollar exchange rate. Domestic elements include state and central government taxes, profit margins of oil marketing companies and dealers commission. Let’s us look at each and every element in detail.
- Crude Oil Prices: More than 70% of India’s crude oil requirements are imported from other countries. Hence, the price of crude oil in the international market becomes the base price of diesel in Jammu.
The crude purchased by Indian oil marketing companies (OMCs) is known as Indian crude basket. The price of Indian crude basket varies every day with respect to international crude oil price. Since crude oil price forms the base price of diesel price in India, any change in the price of Indian crude basket would affect diesel price.
- Currency Exchange Rate: Currency exchange rate is another factor that affects diesel price in Jammu on a daily basis. As crude oil is typically traded in US dollars, Indian rupee to US dollar exchange rate plays a key role in deciding every day’s diesel price in India. Whenever the value of rupee declines against US dollar, the price of diesel at domestic level increases and vice versa.
|Also Know: Petrol Price In Jammu|
- State Level Taxes on Diesel: One of the elements that affect diesel price at domestic level are the taxes levied by the state government. The Jammu and Kashmir state currently collects value-added tax (VAT) of 17.12% on every litre of diesel sold in the state. Hence, the same rate is applicable to the diesel sold in Jammu city.
- Central Government Taxes on Diesel: Similar to state government taxes, the centre also collects excise duty on every litre of diesel sold in the city. The government currently levies an excise duty of Rs.15.33 per litre of diesel. The tax rate is applicable in Jammu and all other Indian states.
- Profit Margins of Oil Companies: After purchasing crude oil from other countries, the Indian OMCs refine it to extract diesel. They thus add refining costs and profit margins to the cost price of diesel before selling it to the petrol dealers. The element, however, does not affect diesel price in Jammu on a daily basis.
- Dealer’s Commission: Petrol dealers purchase the refined fuel from OMCs. They then add oil transportation cost, station maintenance cost, etc., in the form of dealers commission to the cost price of diesel. The commission is usually revised once every year.
Also Check Diesel Price in NearBy Cities of Jammu
|Diesel Price in Chandigarh||Diesel Price in Srinagar||Diesel Price in Ludhiana|
|Diesel Price in Shimla||Diesel Price in Delhi|
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