Diesel Price in Karnal
Diesel can be used for many purposes. Commonly, it is used for commercial purposes and transportation. With the growing population and diesel-based vehicles, the city of Karnal reported a decent increase in the usage of diesel. Diesel prices have also been increased by fuel marketing companies. The fuel was sold at Rs.67.27 a litre recently in Karnal, which is a city in the Indian state of Haryana. Since different states have different tax structures, diesel cannot be priced the same. On 4 April 2018, diesel was taxed at 17.28%, 24.86%, 24% and 17.59% in Delhi, Maharashtra, Tamil Nadu and West Bengal respectively.
India has three premier oil selling companies. They are Bharat Petroleum, Hindustan Petroleum and Indian Oil. The fuel market is led by these three companies. In India, the extraction of unrefined oil does not suffice the country’s requirements. Therefore, they import crude oil from other countries and sell diesel through a network of dealers in Karnal. With this introduction, let’s move on to the next aspect.
|Also Know: Petrol Price In Karnal|
Revision of Diesel Price in Karnal
Fuel price in Karnal is now getting reviewed regularly. Fuel enterprises have started reviving the fuel rate under the system called dynamic fuel pricing. They are the authorised industry participants to price and review the value of the fuel. Like other countries, the system of dynamic fuel pricing is based on unrefined oil overheads and the exchange rate. Using the same concept, Japan and Australia also revalue the fuel.
|Also Check: Diesel Price in Ambala|
Characteristics of Dynamic Fuel Pricing
- At 06:00 am, the new price of diesel has to be announced across all diesel points of the city.
- Tomorrow’s diesel price in Karnal is determined considering the closing rates of unrefined oil and the currency pair.
- Diesel stations are encouraged to fully mechanise.
- Fuel buyers can be interlinked to real-time market performance.
- Consumers will no longer wait for a period of 15 days to receive the benefits.
How do I Track the Latest Diesel Price in Karnal?
Are you checking the fuel rate regularly? If yes, how are you checking? Fuel rates can be checked using both online and offline methods. Many people still visit the nearest fuel point and get the required details. This a conventional way. Today, we use smartphones for various purposes. Smartphones can also be used to trace fuel rates in Karnal. You just need to download mobile applications and can start using them instantly. Are you a customer of HPCL? If yes, download My HPCL, which is a mobile application customised by Hindustan Petroleum.
BPCL also has a vast number of customers spread across India. It offers a fully tailor-made mobile application called SmartDrive. Similarly, the customers of Indian Oil have an opportunity to obtain the fuel related details by using Fuel@IOC. Each mobile application has unique features and is easy to access. Another option you can consider is online portals. Just visit the authorised website of your favorite brand to get the information you wanted. Mobile applications and online portals are completely reliable and are extremely useful.
Computation of diesel rate in Karnal
We need to first understand the role and responsibility of each industry participant. OMCs buy crude oil from international markets. After converting crude oil into diesel, they will distribute the fuel to customers. Fuel marketing stations are owned and managed by retail investors. They work for a commission. The Central Government is another industry participant. It just levies excise duty. The role of the respective state government is limited only to the execution of Value-added Tax.
The Retail Selling Price of diesel not only in Karnal but also in other parts of the country is ultimately fixed by OMCs. It is inclusive of crude oil rates, state taxes, central taxes, commissions charged by fuel owners, etc. OMCs consider the aggregated price of WTI and Brent. Excise duty is constant. Unlike VAT, it does not change. According to official sources, excise duty and VAT were Rs.15.33 a litre and 17.22% respectively in the month of May 2018.
Fuel rate = central taxes + state taxes + crude oil expenses + commission
Factors Influencing Fuel Prices in Karnal
Fuel rates have accelerated in January 2018 and have fallen reasonably in February 2018. They have further increased in March 2018. Do you want to know the reasons behind these changes? Well, both external and internal factors can change fuel rates. External elements include climate reports, political initiates, currency values, costs of crude oil, etc. How do they impact? Bad weather conditions will interrupt the production of unrefined oil. Thus, there can be a hike in crude oil costs. When crude oil expenses increase, diesel rates in Karnal will decrease.
We cannot ignore the exchange rate in this case. It is taken into consideration when something is imported by India. OMCs have to pay crude oil costs while importing unrefined oil. The price has to be paid in US dollars. In overseas markets, if the USD/INR currency pair appreciates, crude oil costs will decrease proportionately. If the currency pair depreciates, there can be a reasonable downfall in crude oil rates. Ultimately, fuel prices get impacted. Internal factors include taxes and commissions. Both taxes and commissions can be revised.
Usually, the Central Government may cut the excise duty on diesel to reduce the diesel price in Karnal. Or, it may increase the excise duty to increase the current fuel rate in Karnal. For instance, over the last 4 years, excise duty has been revised many times. In October 2017, Maharashtra, Uttar Pradesh and Gujarat reduced the VAT on diesel. After the announcement, fuel rates were adjusted accordingly.
Will GST Impact Diesel Price in Karnal?
GST does not impact diesel price in Karnal. It is a unified tax framework introduced in India in July 2017. There are four tax slabs: 5%, 12%, 18% and 28%. The highest tax slab fixed by the GST Committee so far is 28%. When GST is implemented on diesel at the highest rate of 28%, fuel rates in the city of Karnal are expected to fall. So, diesel has not been included under GST.
Also Check Diesel Price in NearBy Cities of Karnal
|Diesel Price in Faridabad||Diesel Price in Chandigarh||Diesel Price in Jaipur|
|Diesel Price in Gurgaon||Diesel Price in Hisar|
*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.