Diesel Price in Madurai
Diesel price in Madurai has exhibited an upward trend. It is expected to increase in the future. Petrol price differs from diesel price. There exists a big difference since diesel is a subsidised commodity. Diesel has been subsidised since it contributes to the economic development of emerging countries, including India. Diesel offers many benefits and is used majorly by industries. Therefore, the consumption of diesel is increasing in Madurai, a city in Tamil Nadu. Another prime reason behind a steady growth in the usage of diesel is the increasing number of diesel-based vehicles in the city of Madurai.
The fundamental objective of this fuel page is to keep diesel buyers informed about the recent developments. For example, GST is a new concept in our country. After introducing GST in July 2017, there were noticeable changes in the prices of certain services and goods. Was the fuel rate in Madurai changed after the implementation of GST? This question is addressed in the following section. Dynamic fuel pricing is another development. What is the impact of the recently announced Union Budget on the fuel market? This is a very crucial question to be answered from the perspective of fuel users someone like you.
|Also Know: Diesel Price in Tamil Nadu|
Current Diesel Price in Madurai
Diesel price after the daily revision on 18 May 2018 was Rs.71.13 per litre. It was priced at an average of Rs.71 per litre during the first and second weeks of May 2018. The higher the distance traveled from fuel points to supply stations, the higher will be transportation costs. The lower the distance covered from fuel points to supply centers, the lower will be transportation overheads. So, different cities in Tamil Nadu have different fuel prices. For instance, diesel price in Chennai, the capital city of Tamil Nadu, is lesser compared to Madurai.
Dynamic Fuel Pricing
What is dynamic fuel pricing? Dynamic fuel pricing is a concept developed to price the most commonly used fuels, including petrol and diesel. In simple words, dynamic fuel pricing is used to fix the rate of diesel. Diesel has to be priced by fuel companies like Bharat Petroleum, India Oil and Hindustan Petroleum. Crude oil overheads and the exchange rate will be considered to price the commodity under dynamic fuel pricing, which has been implemented in 2017.
Features of Dynamic Fuel Pricing
- Diesel rate in Madurai is revised every day. Each fuel center will display the revised price.
- The system brings transparency in the revision of fuel rates. It allows fuel supply centers to be completely mechanised.
- Dynamic fuel pricing is applicable to publicly-owned fuel companies.
Online and Offline Methods to Obtain the Latest Fuel Price in Madurai
Both institutional and retail customers of diesel are suggested to make use of either offline methods or online methods to get the price. Industrialists are institutional customers. The owners of diesel-run automobiles are retail customers. Tracking the latest price is more important to institutional customers who can plan their expenses in advance. Retail customers have an opportunity to make use of smart ways such as mobile applications and SMS options to instantly get the fuel price offered by their preferred oil company.
In metro cities such as Mumbai, Chennai, Delhi and Kolkata, diesel users have already started using mobile applications. You can also use the same. Mobile applications are three in number: 1) SmartDrive, 2) Fuel@IOC and 3) My HPCL. SmartDrive should be used by the customers of Bharat Petroleum Corporation Limited. Fuel@IOC has been designed by India Oil Corporation Limited for its customers. Lastly, My HPCL is offered by Hindustan Petroleum to its customers.
Computation of Diesel Price in Madurai
Let’s understand the process of computing the fuel rate considering any one of the fuel marketing companies. For instance, Hindustan Petroleum, which buys crude oil from the crude oil market. Upon receiving crude oil, it is transferred to refinery centers owned by Hindustan Petroleum. The costs incurred by the company include crude oil costs, freight and import duties. Hindustan Petroleum then incurs the Refinery Transfer Price for translating the imported unrefined oil into diesel.
On diesel per litre, the excise duty is added by the Central Government. The price paid by fuel dealers in Madurai includes excise duty, crude oil costs and OMC expenses. Later on, Value-added Tax is added by the concerned State Government. In our case, it is the State Government of Tamil Nadu. Fuel dealers will further add their commission. Finally, the fuel price paid by customers in the city of Madurai is inclusive of VAT, crude oil costs, excise duty and commission.
Factors Influencing Diesel Price in Madurai
Exchange rate: The value of our currency keeps changing against the USD on a daily basis. Since crude oil is bought on a contractual basis, the exchange rate has to be considered while fixing the price of crude oil. In India, the USD/INR is monitored by the Central Bank of India, RBI. If the USD gains against the INR in overseas markets, crude oil costs are expected to fall. If the USD devalues against the INR, then, crude oil expenses are envisioned to increase. Ultimately, fuel prices in Madurai and other Indian cities get affected.
Taxes: Like other goods and services, taxes have also been imposed on diesel. Taxes on diesel cannot be constant. The excise duty on diesel was revised in October 2017 and February 2018. Maharashtra, Gujarat and Uttar Pradesh revised the VAT on diesel in October 2017. The point here is whenever either the Central Government or the State Government of Tamil Nadu make changes in the tax structure, fuel rates in Madurai should also be changed accordingly.
Does GST Impact Diesel Price in Madurai?
GST has no impact on diesel price in Madurai. It is charged on other products and services. Intentionally, diesel has not been brought under the GST’s realm. If imposed, the fuel industry participants should follow the GST and existing tax procedures. Moreover, it will accelerate the compliance cost as well.
Also Check Diesel Price in NearBy Cities of Madurai
|Diesel Price in Chennai||Diesel Price in Bangalore|
|Diesel Price in Hyderabad||Diesel Price in Coimbatore|
|Diesel Price in Trichy||Diesel Price in Visakhapatnam|
*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.