Diesel Price in Kota
Diesel rate in Kota, a city in the Indian state of Rajasthan, has increased tremendously. As on 5 July, it was Rs.71.58 a litre. Diesel price is subject to change no matter the city you belong to. We can see this happening under the current fuel pricing mechanism called dynamic fuel pricing. The key attribute of dynamic fuel pricing is the daily revision of fuel prices in sync with the performances of the IN/USD exchange rate and the crude oil market. Since June 2017, dynamic fuel pricing has been in place in India. This mechanism was tested for 40 days in the country like other advanced economies such as Japan, Russia and the United States of America.
Why Dynamic Fuel Pricing in India?
Dynamic fuel pricing was implemented in India to bring changes to consumers and state-run fuel companies. It has gained popularity just within a span of a year because of its tremendous benefits. The Indian fuel companies such as Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Indian Oil Corporation Limited have determined fuel prices in a completely transparent environment. They never stopped the distribution of diesel to end consumers in the city of Kota. Fuel companies were allowed to streamline their processes in order to instantly reflect the regular updates. More importantly, the system of dynamic fuel pricing can foster the fuel sector in India in international markets.
|Also Know: Petrol Price In Kota|
What are the Options to Trace the Latest Diesel Price in Kota?
Dynamic fuel pricing made fuel companies to design and offer customer-friendly mobile applications. Most diesel users have started using these applications already. If you have not started yet, consider downloading the mobile application of your choice to trace the latest diesel price offered in your city and other Indian cities. Indian Oil, a premier oil company, has introduced a mobile application called Fuel@IOC. This mobile application is said to have significant benefits for its users. SmartDrive, which is a mobile application launched by Bharat Petroleum, should be used by BPCL diesel customers. Similarly, if you want to get the current diesel rate offered at Hindustan Petroleum fuel stations, be advised to use My HPCL.
- Indian oil SMS facility: An SMS service has been announced by Indian Oil for its regular customers to check fuel rates. Customers have to send an SMS to 9224992249. The format to send the SMS request is, RSP DEALER CODE to 9224992249.
- BPCL SMS facility: BPCL also provides an SMS service for its users to obtain diesel prices regularly. The SMS request has to be sent to 9223112222. The format to be followed is, RSP Dealer Code to 9223112222.
- HPCL SMS service: HPCL diesel customers can get fuel rates in Kota by sending an SMS request to 9222201122. The request has to be sent in a certain format, which is 9222201122.
|Also Check: Diesel Price in Udaipur|
Computation of Diesel Price in Kota
HPCL, IOCL and BPCL will determine the price of diesel per litre not only in Kota but also in other cities. The retail price charged to end customers includes various types of costs, taxes, the profit margin of Oil Marketing Companies, pollution cess and the commission charged by fuel dealers. Let’s discuss each cost element in detail.
Crude oil costs: Crude oil costs are not decided by India as crude oil is borrowed from overseas markets. They are expressed in terms of dollars on the crude oil market. The crude oil charged to India may not be the same for other countries. If the distance travelled from oil exporting countries to oil importing countries will affect the crude oil rate per barrel. The higher the distance covered, the higher will the crude oil price per barrel and vice versa. This is the reason why costs of unrefined oil in India are higher compared to its neighboring countries. As on 3 June 2018, unrefined oil per litre was Rs.32.98.
Taxes: When you buy diesel in Kota, you pay taxes that include central taxes and states taxes. They are a major cost aspect. Let’s assume diesel price in Kota is Rs.70 per litre, more than Rs.35 will go towards taxes. On diesel, excise duty is commonly charged by the Central Government. This is not the case with regard to Value-added Tax. Excise duty was revised at Rs.15.33 on diesel per litre in October 2017. Until June 2018, in Kota, on diesel per litre, excise duty remained unchanged at Rs.15.33 whereas VAT was 24.28%.
OMC costs: The actual cost of diesel also includes OMC expenses such as refinery transfer price, landing overheads, administrative overheads, freight costs, transportation overheads, etc. As on 3 June 2018, OMC expenses were estimated to be over Rs.10 per litre. If required, they are revised. OMCs incur costs for converting unrefined oil into diesel. They also retain a certain percentage of profit. Another cost aspect included in the retail selling price of diesel in Kota is the commission charged by fuel dealers. It was Rs.2.53 as on 3 June 2018.
Factors Affecting Diesel Price in Kota
Both domestic and overseas factors have a direct impact on the pricing of diesel and petrol as well. Because of VAT, diesel rate will change in each state. As on 1 April 2018, VAT was charged at 22.71% in Assam, 18.28% in Bihar, 17.28% in Delhi, 25.53% in Gujarat and 24.28% in Rajasthan. Based on VAT, diesel price is determined in each city. Since Kota is a city in Rajasthan, diesel buyers in this city are liable to pay the VAT, which is imposed by the Government of Rajasthan. Likewise, the fluctuations in excise duty will determine the price of a litre of diesel across the country.
Like India, many countries will import unrefined oil. Therefore, the exchange rate of the Indian currency, which is the INR, against the currency of the United States of America, which is the USD, is taken into consideration. Crude oil rates are comprehended to increase when the INR appreciates against the USD and vice versa. Eventually, the pricing of diesel in Kota is affected. The exchange rate is highly volatile in nature and is fixed by the Reserve Bank of India considering several aspects such as bank interest rates, inflation rate, economic reports, etc.
Does GST Affect Diesel Price in Kota?
As we all know, Goods and Services Tax (GST) is a newly deployed tax mechanism. It has not been imposed on diesel unlike other products and services. If diesel is brought under the realm of GST, diesel price in Kota will decrease by 20-30%. Whether or not to impose GST on diesel is left at the discretion of the GST Council and the Finance Ministry. Even though the GST Council accepts the proposal of bringing diesel under GST, the required changes are made to ensure that fuel prices will not affect the revenue of the government.
Also Check Diesel Price in NearBy Cities of Kota
*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.