Diesel Price In Kerala Today

Daily Diesel Rates
Date Diesel ( / liter)
15 Dec 2018 ₹ 69.39
14 Dec 2018 ₹ 69.39
13 Dec 2018 ₹ 69.48
12 Dec 2018 ₹ 69.48
11 Dec 2018 ₹ 69.48
10 Dec 2018 ₹ 69.7
09 Dec 2018 ₹ 70.47
08 Dec 2018 ₹ 70.47
07 Dec 2018 ₹ 70.47
06 Dec 2018 ₹ 70.9

Diesel Prices in Kerala

The present financial year has seen tremendous changes with respect to diesel, which is an efficient, multi-purpose liquid fuel. The demand for diesel is mounting day by day in the country, so does with Kerala. The following sections discuss a few important aspects related to diesel from the viewpoint of a common diesel consumer from Kerala.

Daily Revision of Fuel Prices

All diesel bunks throughout the state have begun revising diesel rates on a daily basis since 16 June 2017. Rates will change at 06:00 a.m. every day. Each diesel bunk will display the updated price at its premises for the public. Earlier, the revision used to happen twice a month, which is on the first and sixtieth of every month by taking the average price of crude oil over the last fifteen days and the exchange rate of the INR to the USD.

The new fuel pricing mechanism also considers the variations in overseas crude oil and the exchange rate fluctuations. Unlike the previous revision methodology, variations in the exchange rate and oil rates will be instantaneously shifted to end users of diesel. The new system also makes fuel pricing more transparent. Diesel outlets can practice the best stock management practices under the new system.

Diesel consumers will not be impacted much by dynamic fuel pricing as the variations in diesel prices are not so high. In the earlier system, prices used to change in big margins. With the daily revision in practice, all state-owned oil marketing firms offer an SMS service, a customer care service and an online service for diesel consumers from Kerala to get the latest diesel prices.

Diesel Prices in Kerala

The average price of diesel for the last five days is Rs.61.998. The rate has fallen by more than two rupees since 3 October 2017. It is because of the reduction in the central excise duty. Before deducting the excise, the diesel rate was Rs.64.3 on 3 October 2017.

Also Check: Diesel Price in Trivandrum

How to Compute Diesel Price in Kerala

Like any other cities, the cost structure of diesel in Kerala consist five elements that include the cost of crude oil including freight charges, refinery transfer price, the profit margin of oil marketing companies (OMC), dealer commission, and the state and the central tax on diesel. 50% of retail selling price consist tax elements.

As we all know, India is a huge importer of crude oil. When oil marketing companies import crude oil from overseas oil companies, oil manufacturing companies remit the cost of crude oil in addition to freight charges. Refinery transfer price is the price charged by refineries to transform raw oil into diesel. It will be fixed. The possession of refined oil will be held by oil marketing companies till it is delivered to dealers for sale.

Oil marketing companies then add a certain percentage of profit on the cost of crude oil and the refinery transfer price. Diesel is taxed by the state government and the central government as well. With effect from 4 October 2017, the government of Kerala taxes diesel by 29.21%. The central excise duty imposed by the central government is applicable to all states of India.

Why do Diesel Costs fluctuate in Kerala?

The factors that affect diesel prices in Kerala can be clubbed into two categories. The first category includes domestic factors and the second category includes international factors. The tax components can be considered as domestic factors. The central government retains the right to decrease or increase the central excise duty. It was recently revised on 4 October 2017. After reducing the excise duty, the cost of diesel has come down by more than Rs.2 in Kerala.

Another tax component is the state VAT, which is administered by respective state governments. The cost of diesel will come down if the state government of Kerala reduces the VAT on diesel. It will go up if the local tax increases. The cost of crude oil and the currency conversion rate can be considered as international factors. Crude oil rates are impacted by a lot of factors including overseas political events, the economics of oil-producing countries, export and import procedures, the ratio of global reserves and supplies, and seasonal conditions.

The exchange rate fluctuates often. It is related to the cost of crude oil. If the base currency falls against the local currency, the cost of raw oil will be cheaper in Indian rupees. If the local currency falls against the base currency, the cost of crude oil will be increased proportionately. As a result, the performance of the exchange rate will direct affect diesel prices in Kerala and other Indian cities.

What is the Impact of GST on Diesel Price in Kerala?

The retail selling price (RSP) of all types of goods and services have slighted changed since the rollout of the Goods and Services Tax (GST) in the month of July 2017. But, diesel rates have remained unchanged in the state. GST is not applicable to five petroleum products including diesel. Many of us know that the highest GST rate fixed by the GST Council till date is 28%.

Even if diesel in Kerala is taxed at 28%, the current rate of diesel will fall by at least 20-30%. The implementation of GST will harm the revenue source of the central and state governments. Goods and Services Tax (GST) is not applicable to the entire oil and natural gas industry. All industrial players will not pay tax under the scheme of GST. If the industry is brought under the regime of GST, the compliance cost will be doubled as all participants have to follow the current tax regime and the GST slab.

Diesel Rates vs. Petrol Rate in Kerala

Diesel is priced less compared to petrol because it is a subsidised commodity. The net difference between the current rate of petrol and diesel in Kerala is reasonable like any other state. The prices of petrol and diesel offered by different oil brands will change a bit. They are expected to go up slightly over the next one or two months.

Also Check Diesel Price in NearBy Cities of Kerala

Diesel Price in Trivandrum Diesel Price In Malappuram Diesel Price In Kozhikode
Diesel Price In Thrissur Diesel Price In Kannur

*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 Kerala

  • Government Considering a Hike in Fuel Excise Duty

    Even if there has been a recent drop in the prices of crude oil, it’s unlikely that the Indian Government would reduce the prices of petrol and diesel in the country. That’s because it had already reduced the excise duty on petrol and diesel by Re.1 a litre in the first week of October. Since this move will hurt the fiscal position in a poll year, the government is now considering a hike in the excise duty of petrol and diesel by Re.1- Rs.2 a litre. Also because of the drop of nearly 30% in the prices of crude oil in the last two months, the government has the room for a hike in the excise duty.

    The government is currently imposing a per litre excise duty of Rs.18.48 and Rs.14.33 on petrol and diesel respectively. In Mumbai, the price of petrol at the beginning of this week fell below Rs.80 per litre. That’s chiefly because of two reasons – the drop in crude oil prices and an appreciation in the rupee.

    7 December 2018

  • Government May Opt to Control Retail Fuel Prices to Curb Inflation

    Fuel prices have been on the rise for the last month or so with rates reaching all-time highs in most cities in the country.

    According to Standard and Poor's Global Ratings, the government is looking to curb retail fuel prices to curb inflation. The move can happen because the Indian rupee has slid more than 10% in the recent weeks and crude imports are getting expensive, which in turn is pushing fuel prices up.

    India imports as much as 80% of its crude from the OPEC nations, and the lower exchange value of the rupee has made life tougher for commuters. Vishal Kulkarni, a credit analyst for S&P said that the rising fuel prices has affected normal life in the country and with the elections in mind in less than a year, the government could take measures to curb the rising prices.

    He further said that the government isn’t likely to take up any subsidy approach, instead it will look at other options to cushion the inflationary concerns. Inflation is a sensitive subject in the country and the government is likely to do as much as it can to not affect the cost of everyday things.

    1 October 2018

  • Diesel Costs Rs.73.78 per litre in the National Capital

    With Oil Marketing Companies (OMCs) showing no signs to cutting down the prices of diesel in the country, the rates have continued to soar. As of Monday, consumers in the national capital had to pay Rs.73.78 for every litre of diesel. In Mumbai, the prices were even higher as commuters were needed to spend Rs.78.33 per litre. The hike in the prices of diesel has been accounted to factors like high crude oil prices, a weak rupee, and the high excise duty rates imposed by the government. Given the reasons, a continuous hike in the diesel prices has been witnessed in the country.

    19 September 2018

  • Indian Rupee Under the Control of Crude Oil Prices

    The Indian rupee has endured one of the worst time over the last three years and even forever as its exchange rate has been plummeting against the US dollar significantly.

    According to latest reports, all the fall in the rupee has been largely due to the rise in the crude oil prices. Iran, the leading supplier of crude to India is struggling with heavy US sanctions, which in turn is affecting its exporting machinery.

    It is now being said that India’s oil bill surged to $10.2 billion in July - a 76% rise compared to the bill in the previous year. The rising crude prices have also pushed India’s trade deficit to $18 billion - the most in five years.

    At present, the Indian rupee is the worst performing currency in all of Asia, having slid by 11% from the beginning of August. Plenty of analysts are scrambling over how the rupee could perform by the end of the year with some of them even predicting that it could go further lower before attempting a rebound during the later part of the year.

    11 September 2018

  • Petrol, Diesel Prices in the National Capital Lowest Among All Metros

    For the third consecutive day, petrol and diesel prices remained unchanged in the four metros of the country. The prices of petrol and diesel in the national capital have been constant at Rs.77.14 and Rs.68.72 respectively. Among all the four metros, these are the lowest prices that consumers are paying for every litre of petrol and diesel. The fuel prices in Delhi is lower as compared to other metros of the country because of the fact that the Value Added Tax (VAT) charged on petrol and diesel in the national capital is 27 and 17.24 percent respectively. On the global front, the prices of oil saw a decline after reports surfaced about increased US crude inventories and darkening economic outlook stoked expectations of lower fuel demand. It needs to be mentioned that OECD’s composite leading indicator has below the trend in the month of May and June after it had peaked in January. OECD covers all the advanced western economies along with countries like Russia, Brazil, Indonesia, South Africa, China and India. Apart from that, world trade volume growth has also come down after it went up in January growing at almost 5.7% year-on-year.

    20 August 2018

  • Diesel Prices Remain Unchanged Across Four Metros

    The Organization of the Petroleum Exporting Countries (OPEC) decided to increase the global oil production to tackle the possibility of a scarcity in supply. After an unanticipated increase in the US crude oil stock, global oil prices dropped on 1 August 2018. Brent crude futures experienced a dip of 30 cents that was added to the 1.8% loss in the earlier session.

    Diesel prices in all four metros of the country rose by 7% on 31 July 2018. However, on Wednesday they experienced no change. The rates of diesel per litre remained at Rs.67.82 in Delhi, Rs.70.58 in Kolkata, Rs.72 in Mumbai and Rs.71.62 in Chennai.

    6 August 2018

  • Authorities to Consider Motorway Fuel Rate indications

    It has been decided by the authorities that they shall look again at whether making motorway service areas to exhibit the price of fuels shall lead to lower fuel rates for motorists. This decision has been revealed in a letter to Chris Grayling, transport secretary, from Andrea Coscelli, who is the chief executive of the Competition and Markets Authority. Coscelli was reacting to a letter, which was written by Grayling, from Grayling inviting for an examination into exploitive motorway fuel rates. Grayling said “I would like to accept a notion from the CMA, which is whether the three private corporations are exercising market power to the disadvantage of vehicle owners.”

    29 June 2018

  • Diesel Price Reduced by Re.1 Per Litre in The State of Kerala

    The Government of Kerala reduced the diesel price in the State by Re.1, becoming the first State to cut taxes on the fuel. The revision in the Value Added Tax on diesel will be effective from 1 June 2018. The cut in the VAT in Kerala amidst the growing uproar over higher diesel price in the country. The decision to cut the VAT on diesel is the first instance of a decrease in the price for a litre of diesel after the diesel price peaked to record all-time highs in India. According to the country’s leading oil company Indian Oil (IOC), a litre of diesel in Thiruvananthapuram was selling at Rs.75.19. The State charges the VAT at 24.52% on diesel, while the Centre levies Rs.15.33 per litre.

    30 May 2018

  • All India Petrol Dealer’s Association Plans to Revise its Demand in Order to Lessen the Tax Obligation

    All India Petrol Dealer’s Association (AIPDA) has proposed to revise its demand to diminish the tax burden on the prices of fuels such as diesel and petrol. In an interview, Ali Daruwala said “Diesel rates will deteriorate by Rs.6 a litre if the Maharashtra’s Government eliminates cess. In Pune, diesel rates have now reached to Rs.71.23 per litre. Compared to other states, the VAT on diesel is high. In Pune, on diesel, the VAT is levied at 21%.

    22 May 2018

  • Diesel Price to Increase to Rs.70 per litre in Kerala

    On 1 April 2018, the first day of the fiscal year 2018-2019, the diesel price in Thiruvananthapuram, the capital city of Kerala, have jumped to Rs.70 per litre. It was Rs.69.89 per litre yesterday. R Sabarinath, Vice-resident at Federation of All India Petroleum Traders, said ‘’in the state, the diesel price soared by Rs.12 per litre during the last 9 months.’’ ‘’The steady hike in diesel rates have affected several industry lines, preferably those heavily rely on diesel,’’ he further stated.

    K K Hamza, President at Kerala State Lorry Owners Welfare Federation, said ‘’A consistent rise in diesel prices will increase the transportation costs, which in turn affect the consumer goods. Bringing diesel under the GST outline will be a better idea to smoothen the present tax system and lessen the impact on consumer goods.’’ Mahamed Sageer, General Secretary at Kerala Merchants Chamber of Commerce, said that the commoners may not be able to recognise daily variations in diesel prices.’’

    2 April 2018

Diesel Price In Metro Cities
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Diesel Price In States
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