Diesel Price in Jamnagar
Jamnagar is currently home to the world’s largest oil refinery with an installed capacity to produce more than 12 lakh barrels a day. Known as the ‘Oil City of India’, Jamnagar is located in the Indian state of Gujarat. Similar to other cities in the country, diesel prices in Jamnagar is dynamic and changes daily.
Oil Marketing Companies (OMCs) operate more than 90% of fuel stations across the city. OMCs such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum purchase crude oil from oil-producing countries, which is refined and transported to several cities across India.
|Also Know: Petrol Price In Jamnagar|
As mentioned, the diesel price in Jamnagar is revised every day. The daily revision is due to several elements which impact the change in diesel prices. Here’s an analysis of various factors which influence the change in diesel prices in Jamnagar and in across cities of the country.
Elements which Impact the Diesel Price in Jamnagar
India imports more than 70% of crude oil from the Organisations of Petroleum Exporting Countries (OPEC) or oil-producing countries. This is then refined and sold in the country. The crude oil price forms the base price of diesel in India. Apart from the price of crude oil, there are other factors which influence the diesel price.
- Global Crude Oil Rate: The crude oil price fluctuates due to production cuts, shortage in supply, higher demand, or geopolitical tensions. Whenever the oil-producing countries announce cut in production, the global crude oil price increases, likewise, if there’s an increase in production, the prices fall. State-owned oil companies purchase crude oil and transport it to their refineries and then to petrol pumps across the country. Any changes in the global crude oil price impact the change in diesel prices in Jamnagar.
- US Dollar Exchange Rate: Crude or unrefined oil is traded in US dollars in the international market. Therefore, any change in the US dollar exchange rate influences the price for a barrel of crude oil and in turn, affects the diesel price in Jamnagar.
- Profit Margins, Operating Costs & Dealer Commission: Oil companies purchase crude oil and transport it from oil-producing countries. The crude form of diesel is then refined and supplied to dealers across the country. Oil companies add their profit margin, other operating costs, and dealer (fuel station owners) commission before diesel is sold at its Retail Selling Price (RSP). Hence, any changes in these costs affect the price the consumer pays for a litre of diesel in a city.
- Tax on Diesel in India: Tax on fuel is the biggest component in the diesel price. While the Centre levies excise duty, the states charge sales tax or Value Added Tax (VAT) on the sale of diesel. The excise duty is uniform across the country which is charged at Rs.15.33 per litre, while the VAT on diesel in Jamnagar is 25.53% implied by the state of Gujarat.
Calculation of the Diesel Price in Jamnagar
Now that we understand the factors which affect the diesel price in Jamnagar, let’s look at an example of a diesel price recorded on 3 June 2018 in the city.
|1||International Crude Oil Price + Freight Charges||$78.30 per barrel = Rs.32.98/Litre (considering $1=66.96 and 1 barrel oil = 159 litres)|
|2||Profit margin of Oil Companies, transportation, refining, and operational costs||Rs.7.60/Ltr|
|3||Central Excise Duty + Road Cess||Rs.15.33/Ltr|
|5||Value Added Tax (VAT) + 25p Pollution Cess with surcharge||Rs.14.92/Ltr|
|Total||Retail selling price of diesel in Jamnagar||Rs.73.35/Ltr|
Why do Diesel Prices in Jamnagar Change Daily?
Until 16 June 2017, diesel prices were revised on a fortnightly basis. Oil companies would add the average rate of crude oil of the preceding fortnight along with the US dollar exchange rate before selling diesel at its final selling price. However, if there’s an instance of a sudden hike in crude oil prices, oil companies had to wait a fortnight to pass on the increment, which led to losses incurred by fuel companies.
To avoid losses by the oil companies and to pass on any slight benefit to the consumer, the ‘dynamic fuel pricing’ mechanism was introduced. Under this mechanism, diesel prices are revised daily at 6 a.m. IST based on the previous day’s crude oil rate and the US dollar exchange rate.
How to Track the Current Diesel Price in Jamnagar?
With diesel prices revised daily, it might be a challenge to know the current diesel price in a city. Oil companies have launched several innovative methods to track the latest diesel price in Jamnagar and in across the country.
- Smartphone Apps: Fuel companies have launched mobile apps to track the current diesel price in a city. While IOC has launched the ‘Fuel@IOC’ app, Bharat Petroleum has introduced the ‘SmartDrive’ app and Hindustan Petroleum offers services through the ‘MY HPCL’ app.
SMS Service: Consumers can take advantage of the SMS services offered by oil companies. The format below will track the diesel price sold at a particular fuel station.
- IOC: Type RSP
Dealer Code and send SMS to 9224992249.
- BPCL: Type RSP
Dealer Code and send SMS to 9223112222.
- HPCL: Type HPPRICE
Dealer code and send SMS to 9222201122.
- IOC: Type RSP
- Online Portal: Customers can visit the respective oil company’s website which offers insight into the daily diesel price in a city.
Petrol Vs. Diesel Price in Jamnagar
Like other cities in the country, petrol prices are higher compared to diesel. Components such as tax, refinery cost and commission to dealers are different for petrol and diesel in India. While petrol attracts excise duty of Rs.19.48 per litre, diesel is charged Rs.15.33 a litre. As for the VAT, petrol is levied at 25.44%, while diesel attracts 25.53%.
During the course of April 2018, the average diesel price was approximately Rs.69.70 a litre, while the average petrol price in Jamnagar stood at Rs.73.17 per litre. The average difference between the two fuels stood at Rs.3.47 a litre.
Is GST Applicable on Diesel in Jamnagar?
All commodities and services in India come under the new taxation regime known as the Goods and Service Tax (GST). However, petroleum products have been exempted from GST. Both the Centre and the State earn revenue through taxes on petroleum products.
Since the current taxes - excise duty and VAT - is higher compared to that of diesel, the revenue generated by the government will be impacted, hence, GST is not applicable on diesel in Jamnagar and in across cities in the country. If diesel is brought under the ambit of the GST, the Retail Selling Price of the fuel will reduce significantly.
Also Check Diesel Price in NearBy Cities of Jamnagar
|Diesel Price in Ahmedabad||Diesel Price in Surat||Diesel Price in Hyderabad|
|Diesel Price in Indore||Diesel Price in Mumbai|
*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.