Diesel Prices in Jharkhand
What is the overall trend in diesel prices in Jharkhand? Do you know the recent changes in the Indian fuel retailing segment? How much tax do you pay on diesel? Why is the diesel price changing every day? Read the following sections if you have the similar questions.
Trends in Diesel Price in Jharkhand
Jharkhand, the leading manufacturer of mineral wealth, has 26 districts and 260 blocks. The three major cities of the state include Ranchi, the capital city; Jamshedpur, the most populous city; and Dhanbad, the second most populous city in Jharkhand. During the first two weeks of November 20017, the diesel price has moved in a rising trend in Ranchi. On 1 November 2017, the fuel was priced at Rs.61.07 per litre that reached to Rs.61.67 per litre on 10 November 2017.
Trends in Diesel Pices in Ranchi (Last Five Months 2017)
In Ranchi, in October, the fuel price slashed by 2.08% whereas in September increased by 2.91%. In August, the fuel rate was up by 2.55% and by 3.86% in July. Since the introduction of dynamic fuel pricing in June, fuel prices were down in the second half. Over the last five months, the highest fuel price was Rs.62.30 per litre on 3 September and the lowest price was 56.58 per litre on 1 July. The excise duty was reduced by Rs.2 per litre on petrol and diesel. This was the major price cut during the same period.
Diesel Price in Jamshedpur and Dhanbad
|Diesel Price per litre Jamshedpur||Diesel Price per litre Dhanbad|
|1 April 2017||Rs.59.29||Rs.59.00|
|1 May 2017||Rs.61.12||Rs.60.82|
|1 June 2017||Rs.59.76||Rs.59.47|
|1 July 2017||Rs.56.81||Rs.56.54|
The fuel price in Jamshedpur was more compared to Dhanbad and Ranchi. It is inclusive of crude oil prices, taxes and dealer margins. According to the report released by Petroleum Planning and Analysis Cell (PPAC) on 4 October 2017, the local taxes levied on diesel and petrol in Jharkhand were 24.62% and 31.50% respectively. PPAC administers the subsidy on domestic LPG and PDS kerosene, and interprets the trends in overseas and domestic crude oil prices.
Dynamic Fuel Pricing
The current diesel price in Jharkhand is getting revised under the new fuel pricing system called dynamic fuel pricing. What is it? The system revises fuel prices on a daily basis in lieu of the earlier fortnightly revision. How is the revision done? Like the fortnightly revision, even the dynamic fuel pricing system, also called the daily revision, updates the diesel Costs on the basis of the variations in the INR/USD exchange rate and worldwide crude oil prices. This is the reason why the fuel is priced differently every day.
All diesel stations in Jharkhand will revise the price at 06:00 a.m. every day. The next day’s price is based on the trends in crude oil rates and the INR/USD exchange rate. Any variations in these two price determinants are replicated instantly in the retail selling price, which is charged to customers. Dynamic fuel pricing system has been in practice in India since 16 June 2017. Other nations that have adopted the system include Australia, Russia and the United States of America (USA). The daily revision system has many advantages over the previous fortnightly revision, which include:
- The system entrusts 100% transparency in fuel pricing
- Consumers are aligned with market performances
- Dealers face no difficulties as far as stock management is concerned
- Dealers/intermediaries and oil marketing companies can easily and effectively manage their working capital
Quarterly Diesel Price Trend in Jharkhand between July and September 2018
|Opening date price||Rs.71.38 a litre||Rs.71.81 a litre||Rs.74.37 a litre|
|Closing date price||Rs.71.75 a litre||Rs.74.27 a litre||Rs.78.94 a litre|
|Highest price||Rs.72.67 a litre recorded on the 9th||Rs.74.27 a litre recorded on the 31st||Rs.78.98 a litre recorded on the 6th|
|Lowest Price||Rs.71.15 a litre recorded on the 3rd||Rs.71.81 a litre recorded on the 1st||Rs.74.37 a litre recorded on the 1st|
Diesel Price Trend in Jharkhand in July 2018
- State-owned Oil Marketing Companies (OMCs) revise diesel prices on a daily basis under the dynamic fuel pricing mechanism.
- Under the dynamic fuel pricing mechanism, oil companies include the global crude oil price and the rupee’s exchange rate against the U.S. dollar before arriving at the retail price of diesel.
- Based on the daily revision, the diesel price in Ranchi, the capital city of Jharkhand, on the 1st of July stood at Rs.71.38 per litre.
- Prices dropped slightly on the 3rd of the month when a litre of diesel was sold at Rs.71.15 - the lowest diesel price in Jharkhand for the month.
- Over the course of the first and second weeks, diesel prices inclined significantly to touch the highest price of Rs.72.67 per litre on the 9th of the month.
- The sudden spike in diesel prices was attributed to the marginal increase in the global crude oil price which was passed on consumers.
- Prices fell towards the last week of the month when a litre of diesel in Ranchi on the 31st stood at Rs.71.75.
- Diesel prices in Jharkhand for the month grew by 0.52% influenced primarily by the rise in crude oil prices in the global market.
Diesel Price Trend in Jharkhand in August 2018
- On the 1st of August, oil companies hiked diesel prices in Jharkhand by 6 paise per litre to stand at Rs.71.81 per litre. This was also the lowest prices recorded during the course of the month.
- Due to geopolitical tensions, crude oil prices moved upwards prompting fuel prices such as diesel and petrol to increase in the month of August.
- With the U.S. administration pulling out of the nuclear deal with Iran, there were apprehensions about a possible drop in oil supply leading to a rise in oil prices.
- During the course of the second and third weeks, diesel prices across the country inclined but marginally.
- On the last day of the month, the diesel price in Jharkhand stood at Rs.74.27 per litre - the highest diesel price registered during the month.
- Overall, the diesel price trend in Jharkhand in August was upward rising by 3.42% attributed to the increase in the global crude oil prices.
Diesel Price Trend in Jharkhand in September 2018
- Oil companies revised the diesel price in Jharkhand on the 1st of September to sell it at Rs.74.37, an increase of 10 paise per litre. This was also the lowest diesel price recorded for the month.
- The global crude oil price rose to touch a four-year high during the month trading at $80 per barrel, while the rupee dropped to its lowest trading at Rs.72 over the dollar.
- Both these factors influenced the diesel price in Jharkhand as well as other states in the country leading to record levels.
- Certain states such as Rajasthan, Andhra Pradesh and West Bengal announced a cut in the tax levied by the State government which offered some relief to consumers of those states.
- With the significant increase in oil prices coupled with the depreciation of the Indian currency, diesel registered a record rate of Rs.78.94 per litre on the 30th of the month. This was also the highest diesel price recorded during the month.
- The diesel price trend in Jharkhand in September moved upwards by 6.15% impacted primarily by the increase in the global crude oil price and the sharp fall in rupee over the dollar.
Quarterly Diesel Price Trend in Jharkhand between April and June 2018
|Opening date price||Rs.68.22 a litre||Rs.69.63 a litre (on the 3rd)||Rs.73.15 a litre|
|Closing date price||Rs.69.63 a litre||Rs.73.20 a litre||Rs.71.15 a litre|
|Highest rate||Rs.69.73 a litre registered on the 24th||Rs.73.26 a litre registered on the 29th||Rs.73.15 a litre registered on the 1st|
|Lowest price||Rs.68.22 a litre registered on the 1st||Rs.69.63 a litre registered on the 3rd||Rs.71.15 a litre registered on the 27th|
Diesel Price Trend in Jharkhand in April 2018
- Dynamic fuel pricing is used to revise both diesel and petrol rates in all parts of Jharkhand. It has been in place since June 2017. The prime feature of dynamic fuel pricing is the daily revision of fuel prices.
- The fuel price was fixed at Rs.68.22 a litre on the 1st and Rs.68.42 a litre on the 2nd. The fuel was sold at a price of Rs.68.57 a litre on the 3rd and the 4th.
- Within the first fifteen days of the month, Bharat Petroleum, Indian Oil and Hindustan Petroleum increased the fuel rates in Jharkhand by 0.65% taking into account the crude oil price.
- On the 25th, the price of a litre of diesel was Rs.69.63 at Indian Oil Corporation Limited. This price was extended until the end of the month.
- The average crude oil rate per barrel was increased to $69.30 this month. Because of this reason, state-run fuel enterprises upstretched diesel price in all the cities of Jharkhand by 2.06%.
Diesel Price Trend in Jharkhand in May 2018
- Diesel prices in prime cities of Jharkhand such as Ranchi, Jamshedpur and Dhanbad were steady during the first week of May 2018.
- The second, third and fourth weeks were very crucial. They witnessed an upward trend as far as crude oil rates are concerned.
- Because of an upward trend in the crude oil expenses, fuel rates were further enhanced to Rs.71.71 a litre on the 21st and Rs.73.12 a litre on the 28th.
- In Ranchi, the capital city of Jharkhand, the fuel was retailed at the highest rate of Rs.73.26 a litre on the 29th. On the other hand, the lowest diesel price in Jharkhand stood at Rs.69.63 a litre.
- It was reported by the market analysts that the domestic currency fell slightly against the base currency in April 2018 and May 2018. But, diesel price trends in Jharkhand were not impacted by the variations in the exchange rate.
- In international markets, crude oil rates per barrel were up by $6 in this month. As a result, diesel rates were up by 5.12%.
Diesel Price Trend in Jharkhand in June 2018
- The crude oil market was expected to be sluggish this month. As expected, the crude oil rate began falling.
- On the 1st, diesel price in Jharkhand per barrel stood at Rs.73.15 a litre. The price was declined to Rs.72.96 a litre on the 3rd, Rs.72.66 a litre on the 7th, Rs.71.64 a litre on the 21st, and Rs.71.15 a litre on the 28th.
- The closing date price was down by 2.73% in this month caused by overseas factors. Domestic influencers such Value-added Tax, excise duty and OMC expenses were retained unchanged.
- The highest diesel rate for the month of June 2018 was Rs.73.15 a litre. It was also the highest fuel rate for the quarter.
Trend in Diesel Price in Jharkhand between January and March 2018
|Opening date price||Rs.63.19 a litre||Rs.67.77 a litre||Rs.65.9 a litre|
|Closing date price||Rs.67.62 a litre||Rs.65.72 a litre||Rs.68.04 a litre|
|Highest price||Rs.67.65 a litre booked on 30th||Rs.67.88 a litre booked on 6th and 7th||Rs.68.04 a litre booked on 31st|
|Lowest price||Rs.63.19 a litre booked on 1st||Rs.65.65 a litre booked on 25th||Rs.65.09 a litre booked on 1st|
Trend in Diesel Price in Jharkhand in January 2018
- Fuel consumers can notice a minute change in the diesel prices in Ranchi, the capital city of Jharkhand, and Jamshedpur and Dhanbad because of the distance travelled from fuel supply centers to fuel retail centers.
- The OMCs will offer the Retail Selling Price of diesel considering the excise duty, the Value-added Tax, the profit margin and expenses of the OMCs, the commission remitted to dealers and pollution cess.
- As of 31st January 2018, in all regions of Jharkhand, the excise duty was charged at Rs.15.33 a litre and the VAT at 23.33%. The taxes are a major cost component and account for more than 45% of the market price.
- Under the dynamic fuel pricing framework, interestingly, the fuel cost persistently hiked until the closing day of the month as the crude oil market succeeded to hold the same level of demand in transnational markets.
- On 7th, the USD/INR conversion ratio declined Rs.63.35 and bounced back to Rs.63.53 on 14th. The exchange rate was depreciated to Rs.63.56 on 31st. Similarly, a steady incline was noted in the crude oil rate for Indian Basket.
- In the end, across the state, the fuel rate hiked by 7.01% buoyed by global aspects and not because of indigenous forces. The closing date price also turned out to be the highest price for January at Rs.67.65 a litre.
Trend in Diesel Price in Jharkhand in February 2018
- The Central Government’s budget, which was unveiled on 1st, was not in favor of diesel buyers who prolonged to pay the same offer.
- On the Foreign Exchange Market, the USD/INR currency pair was highly volatile and affected the fuel price movements to some extent across the month.
- Crude oil was also priced differently in sync with its demand and hence, the diesel price trekked both downwards and upwards in Ranchi, Jamshedpur, Dhanbad and other premier cities in Jharkhand.
- Indian Oil released the offer on 1st at Rs.67.77 per litre. The offer further upstretched to Rs.67.88 per litre on 6th. Until 25th, the fuel segment demonstrated a dwindling trend only because of overseas factors.
- It can be interpreted that a 3.02% breakdown in the diesel price was prompted by a 5.24% drop in the crude oil rate (Indian Basket).
- No variations were noted as far as domestic elements are concerned. Refinery activities at a global level were not affected. Bad weather reports and fabrication cuts were not announced in OPEC nations.
Trend in Diesel Price in March 2018 in Jharkhand
- Like January, the fuel accumulated its price by 18 paise a litre on 1st at Hindustan Petroleum, Bharat Petroleum and Indian Oil. Fuel rates were predicted to rise marginally by experts.
- Market experts also expected a steep fall in the USD/INR exchange rate based on the economics of the United States of America and India.
- As envisioned, the USD was undervalued to Rs.64.89 on 7th and Rs.64.85 on 14th correspondingly. Likewise, the first fortnight beheld a decent rise in crude oil costs (WTI and Brent).
- Thus, diesel was marketed at Rs.66.64 a litre on 6th and 7th , Rs.66.54 a litre on 12th, Rs.66.3 a litre on 17th , Rs.66.78 a litre on 24th , and Rs.68.04 a litre on 28th. A steady growth can be observed.
- Between January 2018 and March 2018, the highest and lowest prices were reported at Rs.68.04 a litre and Rs.63.19 a litre at all the three OMCs in India.
- A prime reason behind a 3.24% drop in the diesel rates in Jharkhand is the price of overseas unrefined oil, which was $67.06 a barrel in January, $63.54 a barrel in February and $63.80 a barrel in March.
How to Check the Current Diesel Rates in Jharkhand?
All diesel consumers whether retail or institutional in any part of Jharkhand are advised to check the current fuel price before buying. There are so many options to trace regular prices. For instance, customers can download the mobile applications designed by all Indian oil marketing entities, which include Indian Oil, Bharat Petroleum, Hindustan Petroleum and Shell Oil. Other options offered by these companies include SMS alerts and customer care services. The latest price can also be checked online. Even the lowest fall will make a big difference to your billing amount if you are buying in huge quantities.
How are Diesel Prices in Jharkhand Computed?
Approximately 56% of the RSP goes towards taxes and the margin of dealers and the remaining 44% goes towards OMC costs. The RSP of diesel charged to dealers comprises of the central and local taxes, overheads incurred by oil marketing companies (OMCs) such as crude oil prices, refinery transfer price, entry taxes, marketing and operational overheads; the profit margin of dealers and OMCs, and pollution cess. The central excise duty charged on diesel was Rs.15.33 per litre as on 04 October 2017. The state tax imposed by the government of Jharkhand was 24.62% on diesel as on the same date.
Which are the Elements Affecting Diesel Price in Jharkhand?
Since the introduction of dynamic fuel pricing, diesel prices in Jharkhand have been changing every day. The price revision, as discussed earlier, is done based on transnational crude oil rates and the INR/USD conversion rate. Therefore, ups and downs in these two determinants have a direct impact on the RSP of diesel charged to consumers in Jharkhand. For instance, in case the value of the INR goes up against the USD, the cost of crude oil will be cheaper, leading to a fall in the RSP. Conversely, in case the USD goes up against the INR, the cost of crude oil will increase, leading to a rise in the RSP. Taxes also impact diesel rates in Jharkhand.
GST Effect on Diesel Rate in Jharkhand
The Goods and Services Tax (GST) has been imposed on all kinds of commodities and services. GST is a unified indirect tax regime introduced in July 2017. Both petrol and diesel remain uncovered under GST. Thus, the new tax system does not impact fuel prices in India. Jharkhand is no different. The implementation of GST on diesel and petrol is seen as an unfavorable move from the viewpoint of the government. Fuel rates will come down drastically. The revenue source for the government will be harmed as a result.
|Also Check: Diesel Price in Ranchi|
Also Check Diesel Price in NearBy Cities of Jharkhand
|Diesel Price In Jamshedpur||Diesel Price In Ranchi|
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