Diesel Rate in Kolkata
Kolkata, the capital city of West Bengal is a bustling city in East India. It is the second largest city in India after the country’s financial capital, MumSituated on the western side of India, Kolkata is the capital city of West Bengal and is the second largest city in the country. Diesel Price in Kolkata are revised daily, proportional to market rates of crude oil. Hence, the diesel price in Kolkata will incline every time the global crude oil price increases coupled with the rupee-dollar exchange rate and vice versa.
|Also Know: Petrol Price In Kolkata|
Trend of Petrol Price in Kolkata for September 2019 (rates per litre)
|Highest Rate in September||Rs.68.92|
|Lowest Rate in September||Rs.67.48|
September - Week 1 (1-7):
- Petrol price in Kolkata opened at Rs.67.60 per litre, which was the closing rate for the month of August 2019. On the basis of the demand of oil in the local market, the state-run oil marketing companies retained the existing rates.
- The rate of petrol remained unchanged for a while before dropping by 2 paise to Rs.67.58 per litre on 5 September 2019. The rate of petrol, however, witnessed a gain in the international market after the announcement of a probable trade pact between America and China. The rate of petrol dropped further on 6th and 7th September by 6 paise and 4 paise, respectively. The performance of petrol in Kolkata trended downwards with an overall drop of 0.18%.
September 2019 – Week 2 (8 – 14):
- In Kolkata, diesel prices opened at Rs.67.48 per litre on 8 September. The rates charged were unchanged from the previous day’s price. Meanwhile, in the international oil industry, crude futures dropped after participants reduced positions due to a weak trend in global markets.
- The Diesel Price in Kolkata remained stable for a day before increasing gradually over the week as there was a sharp drop in US inventories. Diesel prices in the eastern metropolitan city increased by 5 paise per litre on 10 September and was retailed for Rs.67.53.
- Diesel rates closed the week at Rs.67.76 per litre. This was the highest price recorded for the month so far. Since the start of the week, the rates increased by 28 paise per litre. The overall performance of diesel in the city was 0.23%, trending upwards.
September 2019 – Week 3 (15-21) :
- Diesel Price in Kolkata opened the third week of September at Rs.67.82 per litre. There was an increase of 6 paise compared to the previous day’s closing price.
- The prices soared to Rs.67.97 per litre on 17 September after staying stable on 16 September. The rates continued to climb considerably over the week even though oil prices in the international oil market declined after Saudi Arabia’s energy minister stated that the lost oil production will be restored by month end.
- Diesel rate in Kolkata closed the week at Rs.68.92 per litre. It was the highest recorded price for the month of September till date. The considerable increase in the prices was accounted primarily to last week’s drone attack on Saudi Arabia’s Aramco oil refinery. Diesel overall performance in Kolkata was 1.95%.
Trend of Diesel Price in Kolkata for August 2019 (rates per litre):
|Highest Rate in August||Rs.68.24|
|Lowest Rate in August||Rs.67.46|
August 2019 – Week 1 (1-7):
- Diesel price in Kolkata opened at Rs.68.24 per litre on 1 August, unchanged from last week’s price. State-run oil marketing companies decided not to change the rates of diesel in spite of weak demand of crude in the international market.
- Diesel remained unchanged for the next couple of days before dropping slightly, recording Rs.68.22 per litre— a drop of 2 paise per litre. Meanwhile, in the international market, crude prices fell amid worries over weaker demand after the Trump administration said it would impose tariffs on more Chinese imports.
- Diesel closed the week unchanged at Rs.68.22 per litre. The overall decline of diesel price in Kolkata was -0.03%. In the international oil market, crude price dropped owing to US-China trade tensions.
August 2019 – Week 2 (8-14):
- Price of diesel in Kolkata opened at Rs.68.14 per litre on 8 August, recording an 8 paise slump from the previous day’s closing price.
- Diesel slumped further by 8 paise on the next day, recording Rs.68.06 per litre. The dip was primarily due to the ongoing US-China trade tensions, further fuelled by the Trump administration’s decision to impose more tariffs on Chinese imports.
- Diesel price in Kolkata dropped marginally in the next few days before stabilising at Rs.67.79 per litre. The overall performance of diesel compared to the opening day was -0.65%, trending downwards. Meanwhile, in the international oil market, crude prices dropped due to possible supply cuts amidst looming global economic crisis.
August 2019 – Week 3 (15-21):
- Diesel price in Kolkata opened at Rs.67.79 per litre, unchanged from previous day’s closing price.
- Price of diesel in kolkata slumped further in the next few days, closing the week at Rs.67.46 per litre. The overall performance of diesel in Haryana was -1.14%, trending downwards.
- The slump was primarily due to the weak demand of the oil. Meanwhile, in the international market, crude gained after US inventories fell.
August 2019 – Week 4 (22-31):
- Diesel pricr in Kolkata opened at Rs.67.46 per litre, same as previous day’s closing price. This was also the lowest recorded price for the month of August.
- Price of diesel in Kolkata increased on 26th August, with diesel recording Rs.67.71 per litre. Meanwhile, in the international oil market, crude gained after a substantial fall in US inventories.
- Diesel slumped soon after, closing the month at Rs.67.60 per litre. Meanwhile, in the international crude industry, crude fell due to a looming economic slowdown triggered by US-China trade tensions. Overall, diesel’s performance in Kolkata for the month of August was -0.93%, trending downwards.
Also Check Diesel Price in Metro Cities
|Diesel Price in Mumbai||Diesel Price in Delhi||Diesel Price in Bangalore|
|Diesel Price Kolkata||Diesel Price in Chennai||Diesel Price Pune|
Trend of Diesel Price in Kolkata for July 2019 (rates per litre)
|Highest Rate in July||Rs.68.64 on 7 July|
|Lowest Rate in July||Rs.66.19 on 1 July|
July 2019 – Week 1 (1-7):
- Diesel price in Kolkata was recorded at Rs.66.19 per litre on 1 July. This was a slight hike compared to previous day’s closing price. The increase in price was primarily due to oil marketing companies’ decision to revise petrol and diesel prices.
- The following day i.e. 2 July, diesel further increased to Rs.66.28. The increase in price could be attributed to the revised rates. Diesel price remained unchanged for the next few days till 6 July.
- Kolkata diesel price was recorded at Rs.68.64 on 7 July, a significant increase compared to previous day’s closing price. This surge was mainly because the Government increasing the excise duty and road and maintenance cess on diesel and petrol.
July 2019 – Week 2 (8-14):
- Diesel price in Kolkata opened at Rs.68.59 per litre on 8 July, a 0.05 paise drop per litre compared to the previous day’s closing price. The drop in diesel price was primarily due to the ongoing US-China trade crisis that may bring global economic crisis.
- There was a further drop in the next couple of days as investors assessed the US-China trade situation and shifted their focus on safe-haven investment channels. OPEC extending oil supply cuts till March 2020 also contributed to the drop.
- Kolkata diesel price closed at Rs.68.36 per litre on 14 July—recording a -0.33% drop from the opening day’s price. Trade tensions and oil supply cuts extension was the primary reason for this diesel price slump.
July 2019 – Week 3 (15-21):
- Diesel price in Kolkata stood at Rs.68.36 per litre on 15 July. The closing rate was similar to that of the previous day’s closing price. The international oil market remained fairly balanced with OPEC and Russia deciding to extend supply cuts. However, on 15 July, crude prices dropped after China recorded its slowest quarterly economic growth in the last 27 years.
- Diesel remained stable on the next few days amidst US stockpiles increasing, indicating weak demand. Surprisingly, diesel prices didn’t change amidst US-China and US-Iran tensions, and resumption of oil supplies from the Gulf of Mexico after the Hurricane Barry fiasco, which prompted US oil producers to cut supplies.
- Diesel in Kolkata closed the week at Rs.68.36 per litre on 21 July. The price didn’t change throughout the week, though international crude oil prices shot up due to ongoing US-Iran tensions. Speculation is rife that global crude prices can trend upwards in the following weeks if the US-Iran issue doesn’t come to a standstill or further deteriorates.
July 2019 – Week 4 (22-28):
- Diesel opened the week at Rs.68.36 per litre, the highest diesel rate in Kolkata recorded during the week and remained unchanged until 24 July. However, crude oil prices in the oil market fell after the International Energy Agency (IEA) said it would respond, if required, to the market stable owing to tensions in the Middle East.
- Prices of diesel in the city was cut by 2 paise on 25 July when a litre was available at Rs.68.34 a litre and was kept unchanged until the end of the week despite muted crude oil prices due to weak demand and the ongoing production cuts led by the Organisation of Petroleum Exporting Countries (OPEC) and its allies to keep markets stable.
- Crude oil prices during the week were impacted by the tensions in the Middle East and the falling US inventories indicating a weak demand for crude in the market and possibly affecting the global economy negatively.
Trend of Diesel Price in Kolkata for June 2019 (rates per litre)
|2nd June||Rs.68.06 per litre|
|30th June||Rs.66.08 per litre|
|Highest Rate in June||Rs.68.06 per litre on 2 June|
|Lowest Rate in June||Rs.65.67 per litre from 20 – 23 June|
June 2019 – Week 1 (2-8):
- Diesel was priced Rs.68.06 a litre on 2 June, a slight incline compared to the previous day’s price and the highest price recorded for the month.
- Prices during the week continued to decline amid falling crude prices in the international oil market impacted by supply cuts led by the OPEC and its allies.
- During the week, diesel price in Kolkata moved downwards attributed by the stabilisation of crude prices after plunging by more than 10% in the last four days.
June 2019 – Week 2 (9-15):
- On 9 June, diesel in Kolkata was sold at Rs.66.79 a litre, no change compared to the previous day’s price.
- State-run Oil Marketing Companies (OMCs) cut diesel prices by 51 paise per litre to be sold at Rs.66.28 a litre, this remained unchanged until 12 June.
- By the end of the week, diesel prices in Kolkata in the 2nd week of June fell by 97 paise owing the output cuts led by the OPEC and its allies despite tensions in the Middle East after the US imposed sanctions on Iran.
June 2019 – Week 3 (16-23):
- When the week began, diesel in Kolkata was priced Rs.65.73 per litre, down by 9 paise as against the previous day’s rate and remained unchanged until 19 June.
- On 20 June, diesel price was further cut by 6 paise a litre to be sold at Rs.65.67 per litre (the lowest price recorded during June) and was kept unchanged until 23 June – the end of the week.
- The decline in diesel prices came amid a drop in crude oil prices due to indications that the global economy was slowing down amid the ongoing trade war between the US and China.
June 2019 – Week 4 (24-30):
- During the last week of June, diesel price in Kolkata opened at Rs.65.79 per litre, up by 12 paise compared to the previous day’s price and was kept unchanged until 26 June.
- Prices continued to rise to close the week at Rs.66.08 per litre, up in the week by 29 paise a litre mainly influenced by the slight incline in crude oil prices as investors awaited the G20 summit outcome and expectations of a rate cut by the US Federal Reserve.
- Overall, diesel prices during June declined by 2.91% largely due to supply cuts led by the OPEC and its allies despite geopolitical tensions between the US and China and US curbs on Iran.
What is Dynamic Fuel Pricing?
Why do diesel prices fluctuate in India? As mentioned, petrol and diesel prices are proportional to the global crude oil price which fluctuates every day due to several factors. By following this method of pricing petrol or diesel, oil companies are able to offset any losses as well as pass on any reduction in prices to consumers.
Under this mechanism, oil firms consider the 15-day average price of crude oil and the exchange rate of the rupee over the U.S. dollar to arrive at the final selling price of petrol and diesel. The new price of diesel or petrol in Kolkata can either be higher or lower than the previous price.
The change in the pricing method was intended to pass on the benefit of even the smallest change in oil prices to consumers and petrol pump owners. Under the previous method of revising petrol and diesel prices - every fortnight led to a sudden leap in fuel prices that had to be effected only at the end of a fortnight. This led to losses to oil firms and consumers were unable to take advantage of any decline in prices immediately.
Factors That Affect Diesel Prices in Kolkata
There are several components which are included in the final retail cost of petrol or diesel in a city apart from the primary factors such as the global crude oil price and the rupee-dollar exchange rate. Other components include freight charges, entry tax, oil firm’s margin, logistics and refinery charges that are levied before arriving at the basic cost of fuel. Dealer commission and the taxes charged by the Centre and the respective state government are later included in the retail price of fuel.
While these components remain constant, the two main factors which are dynamic are the crude oil price and the exchange rate of the rupee over the U.S. dollar. Let’s review the primary factors which influence the revision in fuel prices.
- Crude Oil Demand and Supply: For several decades, the Organisation of Petroleum Exporting Countries (OPEC) continue to be the biggest supplier of crude oil in the global market, thereby influencing oil prices in the market. Policies of the OPEC are often influenced by geopolitical developments, hence, any pressure on any of the member countries leads to a shortage in oil supply. Oil prices incline when there are concerns of a possible cut in oil supply. Likewise, an increase in demand for oil from oil-consuming countries prompts oil rates to incline.
- Geopolitical Tensions: Crude oil prices incline in the event of political upheavals, natural disasters, and any political events impact the price of crude in the market. Also, conflicts in oil-producing regions could potentially lead to a shortage in supply, thereby increasing oil rates.
- Future Supply and Reserve: Crude oil is reserved by both oil-producing and oil-consuming nations to keep their economy healthy. Oil is stocked up when the prices are low and supplied through the year to keep prices down.
Quarterly Diesel Price Trend in Kolkata Between January and March 2019
|Opening date price||Rs.64.58/litre||Rs.67.44litre||Rs.68.88/litre|
|Closing date price||Rs.67.62/litre||Rs.68.74/litre||Rs.68.06/litre|
|Highest price||Rs.67.81/litre recorded on 25th, 26th, 27th and 28th||Rs.68.74/litre recorded on 28th||Rs.69.40/litre recorded on 5th, 6th and 7th|
|Lowest Price||Rs.64.05/litre recorded on 7th, 8th and 9th||Rs.67.24/litre recorded on 5th and 6th||Rs.68.06/litre recorded on 29th, 30th and 31st|
Quarterly Diesel Price Trend in Kolkata between October and December 2018
|Opening date price||Rs.77.01 a litre||Rs.75.68 a litre||Rs.74.62 a litre|
|Closing date price||Rs.75.68 a litre||Rs.69.65 a litre||Rs.70.92 a litre|
|Highest price||Rs.77.59 a litre registered on the 17th||Rs.75.68 a litre registered on the 1st||Rs.74.62 a litre registered on the 1st|
|Lowest price||Rs.75.68 a litre registered on the 31st||Rs.69.65 a litre registered on the 30th||Rs.70.92 a litre registered on the 31st|
Diesel Price Trend in Kolkata for the Quarter Ended on 31 December 2018
- In Kolkata, the capital city of West Bengal, the price revision of diesel took place on the basis of the exchange rate, the USD/INR, and the retailing price of petroleum per barrel for the whole quarter.
- If the INR keeps falling over the greenback and the crude oil price keeps increasing, petrol and diesel rates in India will increase and vice versa. Owing to this, the government introduced dynamic fuel pricing in order to transfer benefits of low prices or the burden of higher prices to customers on a daily basis, rather than the old fortnightly system.
- Diesel was bought at an average price of Rs.76.30 a litre in the first week, Rs.76.52 a litre in the second week, Rs.77.38 a litre in the third week and Rs.76.70 a litre in the last week of October in Kolkata.
- In response to the demand of the Congress Party workers, the government diminished the central tax by Rs.2.5 a litre. So, diesel stood at Rs.74.85 a litre on 5 October, up by Rs.2.5 compared to the previous day’s price.
- In tandem with a $2.6 fall in the price of crude oil per barrel, fuel prices were down 1.72% to Rs.75.68 a litre in October.
- Diesel was purchased at a price of Rs.75.68 a litre on 1 November, Rs.75.56 a litre on the 2nd, 3rd and 4th of November and Rs.75.01 a litre on 6th, 7th, 8th, 9th and 10th of November.
- As the cost of crude oil per barrel has slid to $65.40 in November from $80.08 per barrel in October, oil companies decreased the fuel price by 7.96% in November.
- At the beginning of the month, the price was over Rs.74 a litre in December. By the end of the first week, the price dropped by $1.60 a litre.
- On the 4th and 5th, the price remained unchanged at Rs.73.80 a litre, Rs.73.02 a litre on 7th, 8th and 9th and Rs.72.35 a litre on 13th, 14th, 15th and 16th of December respectively.
- The highest fuel price stood at Rs.74.62 on the 1st of December whereas the lowest fuel rate stood at Rs.75.68 a litre on the 31st of October.
Note: For calculation purposes, average crude oil price (Indian Basket) shall be taken into account.
Diesel Price Trend in Kolkata between July and September 2018
|Opening date price||Rs.69.93 per litre||Rs.70.73 per litre||Rs.73.27 per litre|
|Closing date price||Rs.70.61 per litre||Rs.73.10 per litre||Rs.76.64 per litre|
|Highest price||Rs.71.06 per litre||Rs.73.10 per litre||Rs.76.64 per litre|
|Lowest price||Rs.69.93 per litre||Rs.70.73 per litre||Rs.73.27 per litre|
Diesel Price Trend in Kolkata in July 2018
- India has implemented dynamic fuel pricing in June last year to align fuel consumers with real-time market conditions.
- As India buys petroleum from overseas markets, the crude oil rate and the performance of the INR/USD currency have to be pondered while resetting the rate of diesel every day.
- The opening date price is the price offered on the first day of July. It stood at Rs.69.93 at Indian Oil fuel centers in Kolkata, the capital city of West Bengal.
- Every day, the new price was announced by the state-run oil companies and private sector oil companies as well.
- Diesel prices were increased in the first two weeks and also were decreased in the last two weeks by OMCs.
- The commodity was revalued at Rs.71.06 per litre on 16 July 2018 in Kolkata. This was the highest fuel rate in the month.
- In July, fuel prices soared by just 0.97% as the exchange rate of the dollar accelerated against the rupee.
- The VAT is the reason behind the fuel price fluctuation in the Indian cities. It had no influence on fuel pricing this month.
- The excise duty, which is a common tax across the country, remained unrevised at Rs.15.33 per litre in July.
Diesel Price Trend in Kolkata in August 2018
- Diesel was revalued at Rs.70.73 per litre under dynamic fuel pricing on 1 August 2018 in Kolkata. The OMCs used the same mechanism in the entire month of August 2018.
- Because of a sturdy increase, the fuel price jumped to Rs.71.35 per litre on the last day of the first week.
- Irrespective of the changes in the global factors, diesel rates in Kolkata were constant at Rs.71.35 per litre for a period of 8-9 days.
- Fuel price on 16 August 2018 increased by 30 paise per litre. This was a massive hike provoked by a gain in the dollar’s exchange rate.
- In the last 15 days also, the prices of diesel in Kolkata neither increased nor decreased for some days.
- On 28, 29, 30 and 31 August 2018, fuel prices in the capital city of West Bengal accelerated by 15 paise a litre, 14 paise per litre, 18 paise per litre, and 28 paise per litre respectively.
- The difference between the closing date and opening date prices is Rs.1.37.
- Crude oil prices increased in August because of the production cut and other global factors. The INR’s exchange rate declined caused by marginally increased petroleum rates in August 2018.
Diesel Rate Trend in September 2018 in Kolkata
- In the initial days of the month, market analysts expected a further increase in diesel rates in Kolkata in September 2018.
- The Chief Minister of West Bengal reduced the sales tax in order to control the upward trend in fuel rates. Karnataka, Andhra Pradesh, and Rajasthan also declined the sales tax on diesel in the interest of fuel customers.
- The rate at which the USD gained against the INR was higher in September 2018 compared to the previous two months. The same goes with the prices of unrefined oil prices.
- Therefore, diesel price at the fuel stations of Indian Oil, BPCL and Hindustan Petroleum were augmented by 4.59% in September 2018.
- For the whole quarter, the highest and lowest fuel rates were booked at Rs.76.64 a litre and Rs.69.93 a litre.
- OMCs decrease fuel rates when the USD drops and the crude oil cost decreases. They increase petrol and diesel prices when the USD gains and the cost of unrefined oil increases.
- The same formula was used by the OMCs to restructure the price of diesel in July, August and September.
Note: Primarily, the pricing of crude oil is impacted by production cuts, changes in demand for the commodity, geopolitical tensions, etc. The exchange rate is determined considering factors such as the interest rates, fiscal deficit, imports, exports and so on.
Quarterly Diesel Price Trend in Kolkata between April 2018 and June 2018
|Opening date price||Rs.67.27 a litre||Rs.68.63 a litre||Rs.71.78 a litre|
|Closing date price||Rs.68.63 a litre||Rs.71.83 a litre||Rs.69.93 a litre|
|Highest price||Rs.68.66 a litre recorded on 24th||Rs.71.83 a litre recorded on 30th||Rs.71.78 a litre recorded on 1st|
|Lowest price||Rs.67.27 a litre recorded on 1st||Rs.68.63 a litre recorded on 1st||Rs.69.93 a litre recorded on 27th|
Diesel Price Trend in Kolkata in April
- Under dynamic fuel pricing, diesel was offered at Rs.67.55 a litre on 3rd and 4th. Similarly, the fuel was sold at Rs.67.69 a litre on 10th and 13th. On 14th, diesel rate in Kolkata, the capital city of West Bengal, soared to Rs.67.7 a litre.
- Diesel rates in the city of Kolkata showed a mixed reaction during the third week of the month. Diesel was sold at Rs.68.63 a litre on 25th, 26th, 27th, 28th, 29th and 30th.
- The opening date price was recorded at Rs.67.27 a litre, which was also the lowest diesel rate for the month.
- Because of an upward trend this month, the highest fuel rate was recorded at Rs.68.66 a litre towards the end of the month.
- Taking into account the variations in the rate of crude oil and the exchange rate, diesel rates in the city of Kolkata have increased by 2.02% in the month of April.
- The cost of crude oil was increased in international markets considering the increased demand for unrefined oil.
Diesel Price Trend in Kolkata in May
- Like other metro cities, the price of diesel per litre was sold at Rs.68.63 a litre for the first 11 days of May caused by the stable crude oil market.
- On the other hand, state-run fuel companies such as Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited have increased the rate of diesel during the last 20 days of the month.
- In this month, the crude oil rate per barrel has increased by $6. As a result, fuel rates were increased by 4.66%. The closing date price for the month stood at Rs.71.83 a litre. It was also the highest fuel rate for the month.
- In May, the growth rate was higher compared to the previous month. Other metro cities such as Delhi, Chennai and Mumbai have also reported the same result.
- Taxes are also a part of the retail selling price of diesel. The revision of taxes will have a direct impact on the pricing of diesel. In June also, excise duty was not changed by the Central Government.
Diesel Price Trend in Kolkata in June
- On 1st, diesel rate in Kolkata stood at Rs.71.78 a litre. The price was further increased to Rs.71.66 a litre on 2nd and 3rd.
- For the first seven days of the month, the average rate of diesel per litre was Rs.71.54. The average diesel rate per litre in Kolkata has decreased over the last three weeks.
- Unlike the first two months, in June, the fuel rate has fallen by 2.57% because of a downfall in the price of crude oil per barrel.
- The USD/INR exchange rate was considered to be relatively flexible. It had no impact on the revision of fuel rates in the city of Kolkata throughout the quarter.
- On 1 April 2018, diesel price in Kolkata was Rs.67.27 a litre. By the end of June 2018, the fuel price was increased to Rs.69.93 a litre. It means the fuel rate has increased by 3.95% between April 2018 and June 2018.
- For the whole quarter, the highest fuel rate was declared at Rs.71.78 a litre whereas the lowest fuel price stood at Rs.67.27 a litre.
Trend in Diesel Price in Kolkata between January and March 2018
|Opening date price||Rs.62.42 per litre||Rs.66.76 per litre||Rs.64.99 per litre|
|Closing date price||Rs.66.67 per litre||Rs.64.82 per litre||Rs.67.09 per litre|
|Highest price||Rs.66.67 per litre booked on 31||Rs.66.87 per litre booked on 6 and 7||Rs.67.09 per litre booked on 31|
|Lowest price||Rs.62.42 per litre booked on 1||Rs.64.81 per litre booked on 25||Rs.64.99 per litre booked on 1|
Trend in Diesel Price in Kolkata in January 2018
- It has been a great month that produced an uninterrupted upsurge as far as the diesel price in Kolkata is concerned. The fuel price was steady not even for a single day.
- The fuel market opened with a price of Rs.62.42 a litre and was expected to travel upwards in sync with the growing crude oil costs and the falling value of the greenback against the local currency.
- As anticipated, the fuel reached the price range of Rs.62.97 a litre on 7 at an increasing rate of 0.88%, Rs.64.54 a litre on 16 at a growth rate of 2.49%, Rs.66.05 a litre on 26 at an increasing rate 2.32%, and Rs.66.67 a litre on 31 at a growth rate of 0.95%.
- This growing trend was triggered by an increase in the Indian Basket average rate of unrefined oil, which was $67.50 per barrel on 10, $66.69 per barrel on 19, and $68.11 per barrel on 26.
- Like Delhi, Chennai and Mumbai, the diesel price also in Kolkata breached its multi-year highs this month since the unrefined oil’s demand increased substantially.
- Kolkata reported a 6.80% gain in the Retail Selling Price of diesel, which majorly includes the taxes, the commission for fuel suppliers, the total amount of expenses spent by Indian OMCs, etc.
Trend in Diesel Rate in Kolkata in February 2018
- The fuel was purchased at Rs.66.76 a litre on 1 and 2, Rs.66.74 per litre on 3 and 4, and Rs.66.79 a litre on 5. On 6 and 7, the fuel was valued the highest at Indian Oil at Rs.66.87 per litre.
- It clearly symbolises an increasing trend not because of the announcement of the Union Budget for the FY 2018-2019 on 1 but because of the sustained demand for crude oil from emerging nations including India.
- After the first week, the crude oil market was sluggish and the commodity started gradually losing its price in overseas markets. The exchange rate also showed a mixed reaction.
- During the second, third and fourth weeks, the rates of Brent Crude Oil and WTI Crude Oil have fallen reasonably, which in turn reduced the crude oil price (Indian Basket) to $63.54 per barrel this month.
- Eventually, the diesel price depreciated 2.90% to Rs.64.82 a litre (closing price), the third highest price for the month.
- Other Indian metro cities also reported a declining trend but the margin of fall minutely varies from city to city. It was 3.05% and 2.32% in Delhi and Chennai respectively. Conversely, in Kolkata, it was 2.90%.
Trend in Diesel Prices in Kolkata in March 2018
- Due to uninterrupted refinery activities in OPEC nations and the constant demand for the commodity, both WTI and Brent Crude have gained the price at the beginning of the month.
- HPCL, Indian Oil and BPCL, the Indian Oil Marketing Companies (OMCs), never reduced the fuel rate. For a few days, the offer was stable.
- To make it clear, an offer of Rs.65.7 per litre was extended on 6 and 7 and Rs.65.59 a litre on 13 and 14 correspondingly. For the remaining days, the price was hiked by the OMCs under the dynamic fuel pricing methodology.
- In this quarter, no production cuts and bad weather conditions were reported by OPEC countries. No changes were made with regard to the domestic taxes in Hyderabad as well.
- A prime reason behind a 3.23% shortfall in the price is a 0.40% upsurge in the cost of crude oil this month.
- The highest price for the quarter was divulged at Rs.67.09 a litre on 31 whereas the lowest rate stood at Rs.62.42 a litre on 1 January.
Diesel Price Calculation in Kolkata
State-owned oil firms fix the retail price of diesel in a city based in the daily ‘Dynamic Fuel Pricing’ mechanism. Know how the diesel price in Kolkata is calculated before it’s dispensed to consumers. Prices calculated below are as of 3 January 2019.
|Components||Diesel Price Calculation (per litre)|
|International Crude Oil Price with Ocean Freight||$56.5 or Rs.3,967 per barrel|
|One Barrel of Crude Oil||159 litres|
|Crude Oil – Cost||Rs.24.95|
|OMCs Cost for Refinery and Logistics||Rs.11.74|
|Basic Cost of Fuel after Refining Cost||Rs.36.69|
|Excise Duty + Road Cess||Rs.13.83|
|Price Charged to Petrol Pump Owners before VAT||Rs.50.89|
|Commission to Dealers||Rs.2.53|
|Cost before VAT||Rs.53.42|
|VAT (17% or Rs.7.70 per litre whichever is higher)||Rs.9.08|
|Final Retail Price of Diesel as on 3 January 2019||Rs.62.50|
Diesel Price in Kolkata Compared to other Metro Cities
Diesel prices vary from city to city based on several other factors such as taxes, transportation cost and between oil companies’ fuel stations. While the cost before VAT remains almost similar, the local sales tax or the VAT makes the difference in pricing. In Kolkata, the VAT on the sale of diesel is 17% or Rs.7.70 per litre (whichever is higher). However, in Mumbai, the VAT is the highest at 24%, while the VAT in Delhi is the cheapest at 16.75%.
Diesel Price Vs. Petrol Price in Kolkata
The basic cost of fuel after refining remains the same for both petrol and diesel; however, the excise duty levied by the Centre and the VAT levied by the West Bengal Government is different. While petrol attracts excise duty of 25% or Rs.13.12 per litre, whichever is higher, diesel is charged 17% or Rs.7.70 per litre. This variation in tax structure makes diesel cheaper than petrol.
Why Diesel is not under GST?
The new taxation system known as the Goods and Service Tax (GST) was introduced by the Central government from July 2017. However, five petroleum products such as petrol and diesel, natural gas, crude, and aviation turbine fuel (ATF) have been exempted from GST. Both the Centre and states are not in favour of implementing GST on fuel as there could be an impact on their respective revenue collection. The Centre could lose as much as Rs.20,000 crore input tax credit in earnings through excise duty, while states are apprehensive about affecting their revenue pool to meet any contingencies.
The total tax incidence under the current tax regime of excise duty and VAT comes around 45-50% and 35-40% petrol and diesel respectively. Under the GST, the total tax incidence is 28%, impacting the revenue earned by both. The GST is an ad valorem charge, levied as a percentage on the ex-factory price, which could have a huge influence on retail prices whenever refinery gate prices are increased due to the incline in crude oil prices in the international and vice versa.
Also Check Diesel Price in NearBy Cities of Kolkata
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