Diesel Price in Kurnool
Kurnool is a district headquarter in Andhra Pradesh. Diesel is supplied through fuel brands such as Indian Oil, Hindustan Petroleum and Bharat Petroleum. Other brands such as Reliance and Shell Oil also have a few fuel dealers in the city. Diesel price may change minutely from one brand to another. For instance, the fuel price offered by IOCL was Rs.74.60 per litre on 20 May 2018 whereas the fuel price offered by BPCL was Rs.74.54 per litre. You can observe a price difference of 6 paise per litre. Different people have different brand preferences. This page is common for diesel consumers from the city of Kurnool and will help them understand recent developments.
Analysis of Diesel Rates in Kurnool
On 23 May 2018, Indian Oil Company declared an MRP of Rs.74.28 per litre and Hindustan Petroleum announced an MRP of Rs.74.76 per litre. The offer of Bharat Petroleum stood at Rs.74.39 per litre. Diesel prices in Kurnool have increased significantly over the last five months because of heavy taxes and crude oil expenses. Both central and state taxes have been increased. In May 2018, the excise duty on diesel per litre was revised to Rs.15.33 per litre. Value-added Tax is a state-specific tax. It was collected at 28.60% during the same month. Despite taxes, fuel prices in Kurnool are predicted to increase.
|Also Know: Petrol Price In Kurnool|
Revision of Ddiesel Rate in Kurnool
Today, Oil Marketing Companies (OMCs) across India will follow a system called dynamic fuel pricing. Marketers use certain parameters to fix the price of something. For instance, a smartphone is priced considering its features and competitors. Similarly, to price diesel, dynamic fuel pricing is used. Even petrol is priced using the same concept. The revision of diesel rates will take place regularly instead of having just two revisions a month. It has to be made on the basis of crude oil expenditures and the exchange.
How will Dynamic Fuel Pricing Benefit Consumers and OMCs?
Dynamic fuel pricing is an overseas practice, which is followed in a few advanced nations such as the USA, Japan and Australia. India has deployed it to bring some changes and benefit end customers and OMCs. If there is a fall in crude oil costs today, the fuel will be priced lesser tomorrow. Diesel is supplied to customers uninterruptedly. More importantly, the system of dynamic fuel pricing makes fuel pricing completely transparent. BPCL, HPCL and IOCL can diminish the expenses needed to run their business operations. They can even manage their working capital better. Moreover, cash outflows and cash inflows can be balanced properly.
Obtain Today’s Diesel Price in Kurnool using mobile applications
Diesel has two types of customers: institutional customers and retail customers. A retail customer is somebody like you whereas an institutional customer is a capitalist. Diesel is used for transportation purposes by a retail customer. A capitalist uses diesel for commercial purposes. Both consumers have a different level of consumption. Now, tracing the current diesel price in Kurnool has been crucial. Recently, publicly-owned fuel companies have started offering mobile applications to get the price at no cost. Be advised to make use of SmartDrive, a mobile application customised by BPCL; My HPCL, a mobile application designed by Hindustan Petroleum; and Fuel@IOC, a mobile application offered by Indian Oil.
The latest diesel rate in Kurnool is also traced using offline methods. Customers of HPCL may dial the customer care number of this fuel company. Customer care service professionals will help get the information you need. BPCL and IOCL also provide customer care services. SMS services are in place as well. How do they work? You just need to forward an SMS request to your fuel brand. For example, the current fuel price in Kurnool can be obtained by forwarding HPPRICE DEALER CODE to 9222201122.
Assessment of Diesel Price in Kurnool
Diesel rate in Kurnool = taxes + commission + crude oil costs + OMC expenses
Crude oil is not extracted in India. It is exported to India from OPEC countries. The price of crude oil has to be settled in dollars. On 20 May 2018, the cost of unrefined oil per litre was Rs.31 per litre. Market experts have expected it to grow marginally. Dealers collect a certain level of commission for functioning as an intermediary. On diesel per litre, it was Rs.2.52 according to a recent announcement. Value-added Tax and excise duty are the biggest cost aspect. They account for not less than 50% of diesel price in Kurnool.
OMCs will incur expenses such as landing costs, administrative overheads, entry taxes, carriage costs, freight expenses, etc. The overall sum of the overheads spent by OMCs was reported to be Rs.10 per litre on 20 May 2018. These expenses can be revised. Pollution cess is further imposed at 25 paise per litre. The cost elements we have discussed so far will remain unchanged in all Indian states. VAT will differ. Therefore, diesel is not priced the same.
Factors Impacting Diesel Price in Kurnool
Demand is a common influencer. A smartphone worth Rs.20,000 today can be priced at Rs.21,000 tomorrow because of the enhanced demand. When the demand for crude oil goes up in overseas markets, the cost price unrefined oil will increase. Similarly, the cost price of unrefined oil will fall when the demand for the commodity falls down. Diesel is valued accordingly in the city of Kurnool.
Since crude oil is priced in dollars, the impact of the currency conversion ratio has to be considered. In global markets, for instance, if the USD gains against the local currency, diesel rates are decreased. If the USD falls against the INR, fuel rates are increased. As mentioned earlier, taxes have a direct impact on the pricing of diesel. If the Government of India cuts the central levy by Rs.2 per litre, HPCL, IOCL and BPCL must consider revising their offers as well.
Impact of GST on Diesel Price in Kurnool
Fuel customers from the city of Kurnool should understand the impact of GST on the prices of both petrol and diesel. GST, as we all know, is a revised tax system that has been levied in India. If you buying something, GST has to be paid. As far as petrol and diesel are concerned, the system of GST has no impact. Why? It is due to the exclusion of both diesel and petrol.
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*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.