Diesel Price In Madhya Pradesh Today

Daily Diesel Rates
Date Diesel ( / liter)
16 Dec 2018 ₹ 65.77
15 Dec 2018 ₹ 65.77
14 Dec 2018 ₹ 65.77
13 Dec 2018 ₹ 65.87
12 Dec 2018 ₹ 65.87
11 Dec 2018 ₹ 65.87
10 Dec 2018 ₹ 66.08
09 Dec 2018 ₹ 66.82
08 Dec 2018 ₹ 66.82
07 Dec 2018 ₹ 66.82

Diesel Price in Madhya Pradesh

Located in the heart of India, Madhya Pradesh is the second largest state in India. Diesel price in the state, which is a place for major cities such as Bhopal, Indore, Jabalpur, Ujjain, Gwalior, etc., is relatively high compared to other states because of various pricing components involved. In the month of April 2018, highest diesel price was recorded at Rs.80.18 while the lowest price was Rs.79.27.

The fluctuation in diesel price is due to various national and international components that make-up diesel price. Having a basic idea about all such factors would help understand how diesel is priced in Madhya Pradesh and also in rest of the country.

Listed below are the various elements involved in diesel pricing in India along with the factors that are contributing to fluctuating diesel prices.

Components Involved in Diesel Pricing in Madhya Pradesh

Diesel price in Madhya Pradesh, just like in any other Indian state, is made up of various domestic and international elements. All such elements are related to fuel extraction, refining, transportation and marketing and hence play a key role in bringing diesel from beneath the ground to the retail fuel stations.

Crude oil exploration and extraction is typically done in other countries where fuel reserves are high. Though India also has some crude oil reserves, the production from all such reserves is not sufficient to cater the demand. Therefore, India imports over 70% of its crude oil requirements from other countries. Hence, the price at which the countries sell the crude oil to Indian oil companies becomes the major component of diesel price in Madhya Pradesh.

The crude oil purchased by Indian companies is called Indian crude basket and the price of the basket varies with respect to international crude oil prices. Crude oil prices in the global market are dependent on various components including supply and demand, weather conditions, political stability, etc., in the oil producing nations. Whenever there is a sudden change in any of the factors listed about crude oil price will get affected and hence the price of Indian crude basket.

Logistics charges also play a key role in diesel pricing in India. The fuel is transported from overseas location to Indian ports to oil refineries in the country and from there to respective retail diesel stations. Hence, all the charges involved in shipping the diesel through various means including ocean, rail or road thus factor in diesel pricing.

Finally, the state and central government taxes, which form a major chunk in the diesel price, are another determining factors for diesel price in India. While the central government charges excise duty on diesel, the state governments charge value added tax (VAT) on every litre of diesel sold in their respective states.

Currently, the central government charges an excise duty of Rs.15.33 per litre of diesel. The excise tax remains same across all the Indian states and so in Madhya Pradesh.

Madhya Pradesh government collect VAT of 23.22% per litre of diesel which is second highest in the country. The reason why diesel rate in the state often touches Rs.80 is mainly because of high tax rates imposed on diesel. If there is a downward revision in the tax rates, the price of diesel in Madhya Pradesh may come down.

Factors Affecting Diesel Price in Madhya Pradesh

Once you understood the various elements that contribute to diesel pricing in India, it now becomes easy to understand the factors that affect the price on a daily basis.

Of the various components involved in diesel pricing, international crude oil price and currency exchange rate are the two factors that affect the price on a daily basis. Let’s see how and why they show a constant impact.

International crude oil price, as discussed earlier, is dependent on various other factors including demand and supply metrics, production output, weather conditions, political stability, etc., in the oil producing nations. Shortage in the supply of crude oil increases the price of crude oil whereas an increase in supply leads to decrease in the price. Further, the inventory maintained by Indian oil refining and marketing companies also influences the price of crude oil.

Since India follows dynamic fuel pricing mechanism to calculate diesel price, the domestic base price of diesel will be aligned to international crude oil price on a daily basis. Thus even a slightest change in international crude oil price would impact the diesel price in India.

Secondly, as Indian oil companies import crude oil quoted in US dollars, rupee to dollar exchange rate, which again changes dynamically, is another major factor that affects diesel rate in Madhya Pradesh on a daily basis.

Besides the aforementioned factors, any change in transportation charges, diesel dealer’s commission, state and central government taxes, profit margins of oil marketing companies, would affect diesel price in Madhya Pradesh as and when they are revised.

Daily Revision of Diesel Price in Madhya Pradesh

Ever since the dynamic pricing model was implemented in India, diesel price in Madhya Pradesh and in rest of Indian states, are being updated on a daily basis. Dynamic pricing model is a popular pricing mechanism followed in most advanced countries to compute fuel prices. The pricing model considers the elements that dynamically change on a daily basis like the Indian crude basket price and currency exchange rate and computes the diesel price in India.

By implementing dynamic fuel pricing, the government of India aims to pass even the slightest change in international oil prices to the end customer and the diesel dealers immediately. Further, the move brings more transparency in diesel pricing and is expected to reduce the impact of fluctuating oil prices on the working capital of dealers and companies.

*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 Madhya Pradesh

  • Another drop in the price of fuels

    The prices of fuel have dropped once more on Monday. So, in Delhi, after a drop of Rs.0.17 and Rs.0.15 in the prices of petrol and diesel respectively, the revised price of per litre of petrol is Rs.77.56 and that of diesel is Rs.72.31. Mumbai also witnessed a drop of Rs.0.17 in petrol and Rs.0.16 in diesel and the new prices for petrol and diesel are Rs.83.07 per litre and Rs.75.76 per litre respectively.

    After the relentless hike in the prices of fuel in the past few months, the consecutive drops have been a big relief for the masses. Earlier, to curb the skyrocketing prices, the central government had reduced the excise duty on per litre of fuel by Rs.1.50. The government also asked the state-owned oil marketing organisations to drop the prices of the fuels by Re.1 a litre.

    13 November 2018

  • Reasons for a Hike in Crude Oil Prices

    On Tuesday, the prices of crude oil have reached to a new high. Brent crude, which is the overseas standard for petroleum, was seen retailing $82.20 a barrel. It has been interpreted by the market analysts that the prediction of the restricted distribution of crude oil in the global market influenced the price of crude oil to move further. These are the important points to note on the hike in crude oil prices:

      • The United States of America has levied the sanctions on the import of crude oil from Iran. These sanctions shall be applicable from 4 November 2018.

      • Russia and the Organisation of the Petroleum Exporting Countries have been asked by the administration of the United States of America to accelerate crude oil in order to recover the anticipated decrease in the export from Iran.

      • Crude oil prices are anticipated to stay under pressure.

      • The investors in oil shall closely monitor the sanction of US crude information in the future.

      • Gaurav Katariya, who is the head of research at Arihant Capital Markets, said, “The recent stage of bull rally has turned to be unwary.

      • Abhishek Bansal, who is the chairman and founder of ABans Group of Companies, said, “The prices of Brent crude are comprehended to stay higher.”

      • It has been reported by Reuters that petroleum rates shall climb up to $100 per barrel by 2018.

      • The demand for petroleum is anticipated to grow up to 40 million barrels a day in the year 2040.

    1 October 2018

  • UP Leader and BSP President Mayawati Blames Congress for Fuel Price Hike

    Fuel prices have been on the rise for more than two week with the rising crude oil prices and the falling rupee adding to the commotion. The opposition have been at it, blaming the Narendra Modi led NDA government as the culprit behind the hike, however, there’s a twist in the tale.

    According to a report, the Bahujan Samajwadi Party President Mayawati has come out and blamed Congress for the recent fuel hikes seen in India.

    She further held both BJP and Congress responsible for the price hikes. However, a Congress worker was reported saying that such statements when the 2019 elections are nearing undermines the partnership most of the opposition parties are trying to build.

    A senior congress leader also said that Mayawati’s statements should be viewed through the prism of the upcoming Rajasthan Assembly Elections, where she is vying for more seats for her party. The leader further stated that all the intricacies of the grand alliance would be worked way ahead of all the state assembly elections and that one individual should not diss the party when something like this is in the works.

    17 September 2018

  • Petrol and Diesel Rates Hiked Again

    State-owned Oil Marketing Companies (OMCs) hiked petrol and diesel rates again on Thursday in the country. The rates of petrol and diesel touched a new record high on Thursday with Mumbai consumers paying the highest among the four major metro cities. Petrol costs Rs.86.91 per litre, while diesel costs Rs.75.96 a litre in Mumbai. In Delhi, petrol is available at Rs.79.51 per litre, while diesel is available at Rs.71.55 a litre. In Kolkata, the cost of petrol is Rs.82.41 per litre, while diesel costs Rs.74.40 a litre. Similarly, in Chennai petrol is available at Rs.82.60 and diesel costs Rs.75.61 a litre. Petrol and diesel rates are revised on a daily basis under the dynamic fuel pricing mechanism based on the global crude oil price and the exchange rate of the US dollar over rupee. New rates are effective from 6:00 am on Thursday.

    11 September 2018

  • Why Reserve Bank of India makes Money More Expensive

    The Reserve Bank of India, which is also called as the Central Bank of India, has increased the repo rate, which is the rate at which the RBl lends money to other banks, from 6.25% to 6.50%. The bank also has increased the reverse repo rate, which is the rate at which the bank borrows money from other banks, to 6.25%. The repo rate has been increased twice under the BJP Government.

    The income of agriculturists will increase because of good monsoon and a government-guaranteed rate for crops. Inflation will increase as a result. Both diesel and petrol prices are still higher and they can increase inflation. The Gross Domestic Product (GDP) has been expected to grow by 7.4% this year. It is an indication of a stronger economy.

    The Indian currency depreciated against the USD amid Asian currencies in the recent past. Higher interest rates will attract overseas capital and therefore, the INR will bounce back against the USD. Bank loans will become costlier for the common public. Since banking institutions are likely to hike the interest rates on deposits, the depositors will gain.

    6 August 2018

  • Diesel Rates have Increased for the 5th Day in a Row on Monday, 9 July 2018

    Oil marketing companies have confirmed that diesel rates have increased for the 5th day in a row on Monday, 9 July 2018. According to the official website of Indian Oil Corporation Limited, diesel prices were increased to Rs.68.07 a litre in Delhi, Rs.72.23 a litre in Mumbai, Rs.70.62 a litre in Kolkata, and Rs.71.85 a litre in Chennai respectively. Today, all the three state-run oil marketing companies – Indian Oil, Hindustan Petroleum and Bharat Petroleum – will decide diesel rates across India under dynamic fuel pricing. At 6:00 a.m. every day, revised diesel rates are released at each fuel station.

    For 9 days until 4 July, diesel rates were reported to be constant. Under dynamic fuel pricing, diesel rates are revised considering the INR/USD exchange rate and the price of unrefined oil, which has fallen slightly when the Organisation of Petroleum Exporting Countries have decided to increase the fabrication of oil by 1 million barrels a day. The United States of America is pressurising the importers of Iranian oil such as India and China to discontinue borrowing crude oil by 4 November this year.

    11 July 2018

  • Petrol and Diesel Prices Kept Unchanged for the Eighth Consecutive Day

    Petrol and diesel prices were left unchanged for the eighth straight day on 4 June 2018. The petrol price in Delhi stands at Rs.75.55 per litre, while in Mumbai it stands at Rs.82.94 a litre. In Kolkata, petrol is being supplied at Rs.78.23 per litre, Rs.78.40 in Chennai. Likewise, diesel prices remained steady for the eighth day as well. In the National Capital, diesel prices stand at Rs.67.38 a litre, while in Mumbai it stands at Rs.82.94. In Kolkata, diesel prices stand at Rs.69.93 per litre, while in Chennai it stands at Rs.71.12 a litre. The last time oil companies hiked petrol and diesel prices were reduced was on 26 June 2018 in the range of 14 - 18 paise per litre, while diesel prices were reduced in the range of 10 - 12 paise. Fuel prices are revised on a daily basis in tandem with the global crude oil rates and the currency exchange rate of the US dollar over rupee.

    4 July 2018

  • Will Diesel be Included Under GST?

    Presently, GST is a Unified Tax System introduced in India last year. Since crude oil costs have increased, people have started discussing about the imposition of GST on diesel. Will the government do it? Imposing GST on diesel is one of the options considered by the Central Government to reduce the price of diesel. GST has four tax slabs, which include 5%, 12%, 18% and 28%. 5% is the lowest tax slab and 28% is the highest tax slab so far fixed by the GST Council. Though GST is levied at 28%, 14% share of state government will decrease significantly. It is owing several states in India have VAT, which is higher than 14%.

    As diesel rates have increased, the government may cut excise duty and may ask states to cut Value-added Tax to reduce the price of diesel. It is a tough decision. Neither states nor the Central Government is willing to reduce taxes. They earn a huge amount of revenues through excise duty and Value-added Tax. Transmitting the burden of the increased overheads to the ONGC is a short-term solution, which was implemented earlier.

    28 June 2018

  • China and India Move to Challenge OPEC’s power on Crude Oil Prices

    17% of the world’s oil consumption was accounted by India and China last year. These countries are planning to amalgamate their shopping carts with an intention to challenge the capabilities of OPEC to play chaos with crude oil rates. On Monday, the two flanks completed official talks in Beijing for creating a club of oil buyers. Within less than 2 months of Oil Minister advising an association between China and India, the talks have come.

    14 June 2018

  • High Diesel Prices – 4 Aspects that may Help

    Diesel is still expensive in India even though the price of diesel has decreased for six days in a row. The government is planning to introduce either long-term solutions or short-term solutions to reduce growing fuel prices. Imposition of Goods and Services Tax (GST) can be a solution to lessen fuel rates. The government has not made any official announcements yet. If petrol is brought under GST even at 40% tax rate, the fuel rate will fall significantly. The second option to reduce fuel prices is to ask Oil and Natural Gas Company to market unrefined oil at lower rates. The third option is to introduce futures on both fuels. Sanjit Prasad has said that “We have received the no objection from the Oil Ministry.”

    6 June 2018

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