• Diesel Price In Kannur Today

    Daily Diesel Rates
    Date Diesel ( / liter)
    13 Dec 2018 ₹ 68.32
    12 Dec 2018 ₹ 68.32
    11 Dec 2018 ₹ 68.32
    10 Dec 2018 ₹ 68.54
    09 Dec 2018 ₹ 69.31
    08 Dec 2018 ₹ 69.31
    07 Dec 2018 ₹ 69.31
    06 Dec 2018 ₹ 69.74
    05 Dec 2018 ₹ 70.19
    04 Dec 2018 ₹ 70.19

    Diesel Price in Kannur

    Previously known as Cannanore, Kannur is an upcoming urban city in the Indian state of Kerala. As the largest city in the North Malabar region, Kannur is fast becoming an important city of the State. Diesel is extensively utilised by the public to commute between destinations.

    Private buses offer services to the public, while State-run buses ply between major cities in the State. Apart from buses, auto rickshaws and taxis operate in the city as well. Diesel has become an essential product in Kannur and the fuel price is an important component of the common man’s monthly budget. The diesel price in Kannur is revised on a daily basis just like other cities in the country.

    Also Know: Diesel Price in Kerala

    Diesel prices are dynamic in nature due to several factors which are international and domestic in characteristic. Let’s review each factor which influences the revision in diesel prices in Kannur.

    Elements Which Influence the Revision in Diesel Price in Kannur

    State-owned Oil Marketing Companies (OMCs) such as Indian Oil, Hindustan Petroleum and Bharat Petroleum purchase the crude form of diesel from oil-producing countries and ship them to refineries. The crude oil is refined and sold to the end consumer. While global crude oil prices and currency conversion rate are the international factors, taxes and operating costs form the domestic factor.

    • International Factors: India imports more than 70% of crude oil from oil-producing countries which makes it an expensive commodity in India. Crude oil prices are dynamic in nature as it’s determined by several elements. If there’s a production cut announced by the oil-producing countries or if there’s an instance of shortage in supply, the prices of crude oil increases. Likewise, if there’s an increase in production, the prices of crude oil declines. Trading of crude oil happens through US dollars. If the dollar appreciates over the Indian Rupee, the cost to purchase crude oil rises and vice versa. Hence, any change in the US dollar exchange rate impacts the diesel price in Kannur and in across cities in the country.
    • Domestic Factors: While there are two international factors which influence the diesel price in Kannur, there are several domestic factors which determine the cost of diesel in the city. Tax on diesel in Kannur forms the biggest component in the price breakup of diesel. The Centre levies excise duty of Rs.15.33 per litre, while the state of Kerala charges Value Added Tax (VAT) at 25.06% on a litre of diesel. Any revision of the tax rates leads to a revision in the diesel price. OMCs ship the crude oil, refine it, and diesel is then shipped to several fuel stations across the country. Prior to including taxes on diesel, profit margin, other operating costs and commission to dealers (petrol pump owners) are added to the final selling price of diesel.
    Also Know: Petrol Price In Kannur

    Computation of the Diesel Price in Kannur

    Now that we have analysed several factors which influence the diesel price in Kannur, let’s break down the diesel rate recorded on 3 June 2018 to understand the computation of the fuel price better.

    Sl.No. Component Price
    1 International Crude Oil Rate + Freight Charges $78.30 per barrel = Rs.32.98/Litre (considering $1=66.96 and 1 barrel oil = 159 litres)
    2 OMCs Profit margin, transportation, refining, and other operational costs Rs.8.10/Ltr
    3 Central Excise Duty + Road Cess Rs.15.33/Ltr
    4 Dealer Commission Rs.2.53/Ltr
    5 Value Added Tax (VAT) + 25p Pollution Cess with surcharge Rs.15.09/Ltr
    Total Retail selling price of diesel in Kannur Rs.74.03/Ltr

    How Often is the Diesel Price in Kannur Revised?

    Diesel prices in Kannur and other parts of the country are revised on a daily basis under the ‘dynamic fuel pricing’ mechanism. Oil companies include the preceding day’s global crude oil price and the US dollar exchange rate to the Retail Selling Price (RSP) of diesel. This method has helped fuel companies as well as the customer. An instance of reduction in the global crude oil rate is immediately passed on to the customer and likewise, any incline in the unrefined oil price is passed on the customer to avoid any losses incurred by the oil companies.

    Prior to the new pricing mechanism, India used to follow the fortnight fuel pricing mechanism; however, this did not let oil companies pass on any benefits or rise in cost to the customer thereby incurring losses. To offset the losses, the ‘dynamic fuel pricing’ was introduced from 16 June 2017.

    Advantages & Disadvantages of Dynamic Fuel Pricing

    How does revising fuel prices on a daily basis beneficial to oil companies and customers? The new pricing mechanism has its pros and cons for the consumer as well as to OMCs.

    • Oil companies are able to forecast their revenues and losses.
    • Even the slightest change in the global crude rate can be passed on consumers immediately and not wait for a fortnight.
    • In case of a sudden spike in the crude oil price, both the consumer and the oil company do not lose out for an entire fortnight.
    • Customers can take advantage of a low crude rate the next day itself.

    Tips to Track the Current Diesel Price in Kannur

    Since diesel rates are revised on a daily basis, the previous day’s rate need not be the same as today. To find out what is the latest diesel price, consumers can utilise several methods introduced by oil companies.

    • Smartphone Apps: OMCs have launched smartphone apps to track the latest fuel price in a city. Indian Oil has introduced the ‘Fuel@IOC’ app, Bharat Petroleum has launched the ‘SmartDrive’ app, while Hindustan Petroleum has the ‘MY HPCL’ app to find the current diesel rate in Kannur.
    • Services Via SMS: OMCs also offer services through SMS. The process below will track the current diesel price in Kannur.
      • Indian Oil: SMS RSPDealer Code and send SMS to 9224992249.
      • Bharat Petroleum: SMS RSPDealer Code and send SMS to 9223112222.
      • Hindustan Petroleum:  SMS HPPRICEDealer code and send SMS to 9222201122.
    • Website: Consumers can visit the respective oil company’s website to track the current price of diesel in Kannur as well as other cities in India.

    Petrol Vs. Diesel Price in Kannur

    Petrol prices are higher compared to diesel prices as taxes, refinery costs, as well as other operational costs are higher for petrol compared to diesel. While petrol attracts excise duty of Rs.19.48 a litre, diesel is charged Rs.15.33 per litre. As for the VAT, petrol in Kannur attracts 32.03% and diesel is levied at 25.60% making diesel cheaper compared to petrol.

    Goods and Service Tax (GST) on Diesel in Kannur

    Since all commodity and services rendered comes under the new Goods and Services Tax (GST), typically diesel should be under the ambit of GST. However, the Government of India has exempted petrol and diesel from the GST. The revenue earned by both the Centre and the State in levying taxes are higher compared if diesel comes under the highest tax slab of the GST.

    Currently, GST is not applicable to petroleum products; however, if it comes under the framework of the GST, the diesel price in Kannur will reduce significantly.

    Also Check Diesel Price in NearBy Cities of Kannur

    Diesel Price In Mangalore Diesel Price In Trivandrum Diesel Price In Malappuram
    Diesel Price In Thrissur Diesel Price In Coimbatore

    *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 Kannur

    • Diesel Prices in the Indian Metro Cities Today

      Diesel prices continued to exhibit an upward trend on the first day of the week. As per the official website of Indian Oil Corporation Limited (IOCL), which is one of the biggest fuel marketing corporations in India, a litre of diesel was transacted at price of Rs.78.26 in Chennai, Rs.78.58 in the city of Mumbai, Rs.74.02 in the national capital and Rs.75.87 in Kolkata. Compared to today’s prices, diesel prices were down by 5 paise in Mumbai, Delhi and Kolkata respectively and 6 paise in Chennai on Sunday, 23 September 2018.

      Reuters, a news agency, says that the Centre is pondering to diminish the purchase of petroleum to cushion the influence of higher petroleum rates and the weakened rupee. India is currently considered to be the 3rd biggest importer of petroleum from crude oil-exporting countries such as Iran, Iraq, etc. The import of crude oil is accounted to be 80% of the nation’s requirements. At 07:08 am Indian Standard Time (IST), the price of a barrel of Brent crude futures was reported to be $79.71.

      24 September 2018

    • Fuel Price to cut by Rs.1 per litre in Kerala

      Fuel prices have been reduced by Rs.1 per litre in Kerala. Dharmendra Pradhan, Oil Minister, welcomes the move. He further said that when we were asking states to diminish the tax collection in October 2017, the collection of tax was the highest in Kerala. By reducing fuel prices, the BJP-led Government has been alerted to bring down fuel rates. He further added that we had first asked the Government of Kerala to bring down fuel costs.

      31 May 2018

    • Diesel at New Highs in Metro Cities

      On Wednesday, prices of diesel stood at Rs.68.34 per litre, Rs.70.89 per litre, Rs.72.76 per litre and Rs.72.14 a litre respectively in Delhi, Kolkata, Mumbai and Chennai respectively, according to Indian Oil Company. BJP President said the government wanted to combat the issues related to growing petroleum rates. The government will announce the action required to reduce diesel rates. It was urged by the government to diminish excise duty on diesel and petrol by Ficci and Assocham.

      The Central Government was also asked to consider automobile fuels under the scope of Goods and Services Tax (GST). Since 2014, the BJP-led Government has revised excise duty more than 9 times. In Delhi, Mumbai, Kolkata and Chennai, diesel prices have been increased by Rs.2.41 per litre, Rs.2.56 per litre, Rs.2.26 per litre and Rs.2.58 per litre respectively. Presently, diesel prices will be revised on a daily basis under dynamic fuel pricing.

      25 May 2018

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