Diesel Price in Ludhiana
Ludhiana is an industrial city in Punjab. Diesel is extensively used for transportation purposes, agricultural purposes and commercial activities in the city. The demand for the fuel has increased dramatically over the last 2-3 years. Diesel rates are not completely impacted by the demand pattern in the domestic market since diesel is not produced in India. Fuel companies will buy unrefined oil or crude oil from OPEC and other countries, turn the imported crude oil into usable fuels such as diesel and petrol, and market the refined fuels through supply stations.
Diesel Price in Ludhiana under Dynamic Fuel Pricing
What is dynamic fuel pricing? It is a simple concept to understand. The price of a certain product may not be the same tomorrow. If a mobile company introduces its latest model in the market, the pricing of the newly introduced mobile phone is done considering several aspects. Diesel is also a commodity. Today, diesel prices are revised under dynamic fuel pricing across India. Under the system of dynamic fuel pricing, the exchange rate and the rates of unrefined oil shall be pondered by fuel retailers such as Indian Oil, Bharat Petroleum and Hindustan Petroleum to reset the price of diesel on a daily basis.
|Also Know: Diesel Price in Punjab|
Prime Features of Dynamic Fuel Pricing
- Many countries will follow the system of dynamic fuel pricing for benefiting fuel retailers and customers. So, the Indian fuel sector can be interlinked with the global fuel market.
- Since the distribution of diesel cannot be disturbed, diesel buyers are happy with the system.
- Fuel retailers are allowed to maintain their cash budget effectively. Working capital can also be efficiently managed.
Options to get Today’s Diesel Price in Ludhiana
Start using mobile applications if you would like to get the latest fuel rate in Ludhiana. BPCL, IOCL and HPCL will offer uniquely designed mobile applications for their customers. The mobile application designed and offered by Indian Oil is Fuel@IOC while the mobile application designed and offered by Hindustan Petroleum is my HPCL. If you would like to obtain the diesel rate offered at Bharat Petroleum, download and use SmartDrive, a mobile application designed by BPCL for its regular customers. These mobile applications can only be used by smartphone users.
Tips of non-smartphone users to get Current Fuel Price in Ludhiana
Non-smartphone users may use the SMS services provided by IOCL, BPCL and HPCL. IOCL consumers have to send an SMS to 9224992249. You should have a dealer code, which is provided by fuel stations. There is a format to send an SMS request. If you are an IOCL customer, type RSP, provide the dealer code and forward the text to 9224992249. If you are a BPCL customer, type RSP, furnish the dealer code, and send this message to 9223112222. Similarly, HPCL consumers need to type HPPRICE, provide the code of the respective fuel dealer, and send the text to 9222201122. This is also the easiest option to get the latest diesel price in Ludhiana.
Computation of Diesel Price in Ludhiana
Fuel companies will fix the price of diesel. They will add all the cost aspects that are spent at different phases. Usually, the price of diesel consists of crude oil expenditures, central taxes, state taxes, commission for fuel dealers, pollution cess, etc. All the cost aspects are subject to change from time to time. As on 3 June 2018, the cost of a litre of unrefined oil was $78.3, which worked out to be Rs.5,245. The cost of a litre of crude oil worked to be Rs.32.98 in India.
OMCs such as BPCL, BPCL and IOCL will spend different types of overheads for petrol and diesel. The total amount of the overheads spent by OMCs on diesel was more than Rs.10 per litre as on 3 June 2018. Since January 2018, the Central Government has been collecting a central tax (excise duty) of Rs.15.33 a litre. Each state has the same amount of excise duty. Value-added Tax (VAT) is charged differently in India. For instance, in Delhi, the national capital, on diesel per litre, VAT was 17.28% as on 1 April 2018 while in Punjab, it was 16.92%. Another cost aspect is the commission for fuel dealers. It was Rs.2.53 on diesel per litre as on 3 June 2018.
Diesel rate in Ludhiana = cost of crude oil + excise duty + Value-added Tax + commission for dealers + pollution cess
Factors Affecting Fuel Rates in Ludhiana
The State Government of Punjab has not revised the VAT on diesel recently. In October 2017, Gujarat, Madhya Pradesh, Uttar Pradesh and Maharashtra reduced the VAT on both petrol and diesel. VAT is an internal factor affecting fuel prices. Like other states, if the State Government of Punjab declines VAT, diesel rate will fall. Because of VAT, diesel rate in Ludhiana is lower compared to Delhi. If the Central Government decides to revise excise duty, fuel rates in Ludhiana are revised accordingly.
The impact of the exchange rate has to be considered since crude oil is imported. A weaker dollar will boost the price of diesel while a stronger dollar will reduce the rate of diesel proportionately. On the FX market, the currency conversion rate of the INR against the USD, the base currency, is determined. The exchange rate largely depends on exports, imports, interest rates, inflation, etc. Crude oil costs also affect the pricing of the fuel. The lower the cost of crude oil per barrel, the lower will be the fuel rate and vice versa.
Impact of GST on Diesel Price in Ludhiana
GST is actually a tax system implemented to subsume indirect taxes. It is not levied on petrol and diesel to keep the revenue unaffected. When GST was imposed in July 2017 in India, the prices of all kinds of goods and services were revised. But, diesel rates in Ludhiana were not changed. The imposition of GST on diesel and petrol will bring down the fuel rates. As a result, the government may not have the adequate funds to sponsor various schemes.
Also Check Diesel Price in NearBy Cities of Ludhiana
*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.