Diesel Price in Maharashtra
Maharashtra is the third largest state (in terms of area) and the second most populous state in India.
It is also the wealthiest state in the country with its economy majorly driven by industrial output. The state contributes about one fourth of India’s industrial output and more than 23% of the GDP.
Maharashtra has a huge multi-modal transportation system. The road transportation in the state is operated by the Maharashtra State Road Transport Corporation (MSRTC), which provides economical public road transport service. The state-run buses called State Transport (ST) are the preferred mode of transport for most of the people residing in various cities and districts in the state. Private transport in the state is composed of taxis, auto rickshaws and private vehicles.
|Also Check: Diesel Price in Mumbai|
With more population depending on road transportation and people in major cities such as Mumbai, Pune, Nagpur using private vehicles for their day-to-day use, the demand for diesel in Maharashtra is likely to be high.
Discussed below are the various factors that affect diesel rate in the state, the taxes levied by state and central governments on diesel, the daily revision of diesel prices in Maharashtra and other interesting facts about the fuel.
Factors Affecting Diesel Rate in Maharashtra
Diesel price in Maharashtra, just like in other Indian states, fluctuates on a daily basis. There are many components that factor into diesel pricing in India. While few of them affect diesel cost on a daily basis, others affect it once in a while.
Factors that affect diesel price on a daily basis are the international crude oil prices and the US dollar to Indian rupee currency exchange rate.
India imports 70% of its oil requirements from other countries. Hence, diesel prices in India are directly linked to the global crude oil prices. As the crude oil prices are volatile in nature and change every day, diesel prices in India are updated accordingly.
The second factor that impacts diesel price on daily basis is the currency exchange rate. As crude oil trade usually happens in US dollars, the daily fluctuating dollar value impacts diesel price.
Besides the daily impacting components, there are these other components such as the state and central government taxes, marketing costs, transportation costs, dealer’s margins and commission and other operating costs that are factored into diesel pricing.
Among others, state level taxes affect the diesel price in Maharashtra. All the 29 states in India levy value added tax (VAT) on diesel. The tax rate varies from each states as the respective governments are free to decide the taxes. Hence, the tax levied by Maharashtra government makes the diesel price in the state different from other states.
Similar to state government, the central government also levies tax on diesel, called excise duty. The excise duty on diesel remains same across the states. Any revision in the tax would affect the diesel prices in all the states. The recent cut in the excise duty on petrol and diesel in October 2017, is one such move that affected the diesel prices in all the Indian states.
Other factors that marginally impact the diesel price include the profit margins, commission and other operating charges. Though these charges are relatively low, any revision in these may also impact the diesel price.
Quarterly Diesel Price Trend in Maharashtra between July and September 2018
|Opening date price||Rs.71.49 a litre||Rs.72.00 a litre||Rs.74.76 a litre|
|Closing date price||Rs.72.04 a litre||Rs.74.59 a litre||Rs.79.40 a litre|
|Highest price||Rs.72.80 a litre recorded on the 14th||Rs.74.59 a litre recorded on the 31st||Rs.79.40 a litre recorded on the 30th|
|Lowest Price||Rs.71.49 a litre recorded on the 1st||Rs.72.00 a litre recorded on the 1st||Rs.74.76 a litre recorded on the 1st|
Diesel Price Trend in Maharashtra in July 2018
- Under the dynamic fuel pricing mechanism, State-owned oil companies revise diesel prices on a daily basis.
- The retail price of diesel in Maharashtra and other states are based on the global crude oil price and the exchange rate of the Indian currency over the U.S. dollar.
- Diesel and petrol prices are the highest in Mumbai due to higher local sales tax or VAT among all four major metro cities in the country.
- On the basis of daily revision, the diesel price in Mumbai, the capital city of Maharashtra, on the 1st of July it stood at Rs.71.49 per litre. This was also the lowest price recorded during the month.
- Prices continued to soar in the first and second weeks in Maharashtra to touch the highest rate for the month at Rs.72.80 per litre on the 14th.
- The increase in diesel prices was felt across the country even as the crude oil rate moved upwards due to geopolitical tensions between the U.S. and Iran even as the former pulled out of the nuclear deal between the two nations.
- Despite the decline in diesel prices towards the end of the month, the price never came below the opening price of the month.
- On the last day of the month, the diesel price in Maharashtra stood at Rs.72.04 per litre, an increase of 55 paise as against the opening price.
- The diesel price trend in Maharashtra in July grew by 0.77% attributed to the increase in oil prices in the global market.
Diesel Price Trend in Maharashtra in August 2018
- Continuing the daily revision in diesel prices, State-run oil companies revised the diesel price in Maharashtra on the 1st of August. A litre of diesel was sold at Rs.72.00 in Mumbai, this was also the lowest price registered during the month.
- The increase in diesel prices continued during the course of the first and second week of the month in the back of an incline in crude oil rates.
- Due to geopolitical tensions between the U.S. and Iran, after the former pulled out of the nuclear deal between the two nations, there were apprehensions of a possible shortage in oil supply leading to the rise in oil prices in the global market.
- Several states including Rajasthan, West Bengal and Andhra Pradesh cut state-levied taxes on petrol and diesel; however, there was no respite for consumers in Maharashtra.
- By the end of the month, the diesel price in Maharashtra stood at Rs.74.59 per litre, which is also the highest rate recorded during the month.
- Overall, the diesel price trend in Maharashtra during August inclined sharply by 3.60% influenced by the significant rise in oil prices in the international market.
Diesel Price Trend in Maharashtra in September 2018
- On the 1st of September, a litre of diesel was sold at Rs.74.76 per litre in Maharashtra, this was also the lowest diesel price recorded during the month.
- Diesel prices in Maharashtra during the first and second week continued to incline with no signs of a reduction.
- Apart from the rising oil prices in the global market, the rupee fell to its lowest when it breached the Rs.72 mark against the US dollar.
- Influenced by the significant rise in crude oil prices and the sharp fall in the exchange rate of the rupee, diesel prices began touching record levels in the month.
- Prices were hiked relentlessly over the course of the month and by the end of the month, a litre of diesel was sold at Rs.79.40 in Maharashtra. This was also the highest diesel prices registered in the month.
- The global crude oil price rose to a four-year high trading at $80 per barrel in the international market influenced by geopolitical tensions.
- During the month of September, the diesel price trend was upward with an incline of 6.21%, impacted primarily by the steep increase in oil rates coupled with the record decline in the exchange rate of rupee over the U.S. dollar.
Quarterly Diesel Price Trend in Maharashtra Between April and June 2018
|Opening date price||Rs.68.77 a litre||Rs.70.20 a litre||Rs.73.71 a litre|
|Closing date price||Rs.70.20 a litre||Rs.73.76 a litre||Rs.71.49 a litre|
|Highest price||Rs.70.24 a litre registered on 24th||Rs.73.83 a litre registered on 29th||Rs.73.71 a litre registered on 1st|
|Lowest price||Rs.68.77 a litre registered on 1st||Rs.70.20 a litre registered on 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th and 11th||Rs.71.49 a litre registered on 29th and 30th|
Diesel Price Trend in Maharashtra in April 2018
- The diesel price on 1 April 2018 in Mumbai, the capital of Maharashtra, stood at Rs.68.77 per litre - the lowest price for the month.
- During the first week, diesel prices in Maharashtra remained steady with a slight decrease in the price owing to the marginal decline in crude oil rates.
- State-owned oil companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum revise diesel prices under the ‘Dynamic Fuel Pricing’ mechanism.
- Under this pricing method, fuel companies include the preceding day’s crude oil price and the currency exchange value of the US dollar to arrive at the Retail Selling Price (RSP) of diesel.
- However, diesel prices inclined during the second and third week as the global crude oil price increased marginally.
- With crude oil rates rising, diesel prices increased to post its highest price of the month at Rs.70.24 per litre recorded on 24 April 2018.
- Overall, the diesel price trend in Maharashtra reflected an upward trend of 2.08% influenced by the rise in the global crude oil price.
Diesel Price Trend in Maharashtra in May 2018
- On 1 May 2018, the diesel price in Maharashtra stood the same as the previous day recorded at Rs.70.20 per litre. This price continued till the 11 May 2018, which was also the lowest price of the month
- Post 11 May 2018, fuel companies raised the diesel price in tandem with the rise in crude oil rate.
- Fuel companies include the excise duty levied by the Centre and the Value Added Tax imposed by the respective State to the final selling price of diesel. Both the rates remained untouched, hence, the incline in diesel prices is solely attributed to the increase in crude oil rates.
- Other domestic factors such as fuel company’s operational costs and commission to dealers were untouched as well.
- By the end of the month, diesel prices touched a new high to stand at Rs.73.83 per litre in the State largely due to the significant rise in crude oil rates.
- The considerable rise in crude oil rates is largely due to geopolitical tensions of a potential trade war between the US and China.
- The diesel price trend in May in Maharashtra reflected an upward trend of 5.07% largely due to the incline in oil prices in the global market.
Diesel Price Trend in Maharashtra in June 2018
- With the decline in geopolitical tensions between the US and China, crude oil rates began to decline and on 1 June 2018, the diesel price in Maharashtra stood at Rs.73.71 per litre - the highest diesel price for the month.
- Despite a decline in crude oil rates, the prices were significantly higher compared to the previous year. The Organisation of Petroleum Exporting Countries (OPEC) and its key ally Russia decided to meet on 22 June 2018 to address concerns over higher fuel prices across the globe.
- By 20 June 2018, diesel prices fell by Rs.1.58 per litre in tandem with the oil price.
- The OPEC and Russia agreed to increase production of crude oil to reduce the impact of higher fuel prices.
- By the end of June, diesel prices in Maharashtra decreased to record its lowest rate for the month at Rs.71.49 per litre on 29 and 30 June 2018.
- Overall, the diesel price trend in Maharashtra in June 2018 reflected a downward trend of 3.02% as OPEC and Russia agreed to increase the output which led to the fall in crude oil rates.
Trend in Diesel Price in Maharashtra between January and March 2018
|Opening date price||Rs.63.43 per litre||Rs.68.25 per litre||Rs.66.35 per litre|
|Closing date price||Rs.68.15 per litre||Rs.66.17 per litre||Rs.68.58 per litre|
|Highest price||Rs.68.15 per litre registered on 31st||Rs.68.37 per litre booked on 6 and 7||Rs.68.58 per litre booked on 31st|
|Lowest price||Rs.63.43 per litre registered on 1st||Rs.66.17 per litre booked on 1||Rs.66.35 per litre booked on 1st|
Trend in Diesel Price in Maharashtra in January 2018
- At BPCL, HPCL and IOCL, the fuel was valued at Rs.63.43 per litre in Mumbai, the capital city of Maharashtra, and Rs.62.35 per litre in Pune, the second largest city in Maharashtra on 1st.
- A price difference of Rs.1.08 per litre is observed between these two cities because of the Value-added Tax, which was charged at 24.86% in Mumbai and 21.97% in Pune.
- In January, the fuel price was neither constant nor decreased. As per dynamic fuel pricing, it continually accrued the price until the last day of the month. It is pretty interesting to notice.
- On 15th, the diesel rate in Mumbai soared 3.64% to Rs.65.74 a litre. Conversely, it increased 3.73% to Rs.64.68 per litre on the same date. This upsurge was promoted by a steep increase in crude oil rates in overseas markets.
- The overall growth rates were 7.44% and 7.50% in the capital city and Pune respectively in this month. This move was caused by a denigrated dollar and also the increased price of unrefined oil.
- All the three fuel entities reported the highest rate to be Rs.68.15 per litre on 31st and the lowest rate to be Rs.63.43 per litre on 1 in Mumbai.
- Likewise, in Pune, the lowest price was noted at Rs.62.35 per litre on 1st and the highest price at Rs.67.03 per litre on 31st.
Trend in Diesel Rate in Maharashtra in February 2018
- Under the dynamic fuel pricing framework, the fuel was valued at Rs.68.25 per litre and Rs.67.15 per litre in Mumbai and Pune respectively on 1st. The revision of the fuel rate was not affected by the Central Government’s budget.
- On a weekly basis, crude oil costs have fallen significantly. Due to which, the weekly revisions have reported a stable downfall in the diesel price.
- For instance, at the end of the week 2, the fuel rates were down 1.91% to Rs.67.6 per litre; 1.87% to Rs.66.33 per litre at the end of the week 3, and 0.24% to Rs.66.17 per litre at the end of the week 4 in Mumbai.
- Similarly, in Pune, the diesel rates have fallen 1.11% to Rs.66.51 per litre at the end of the week 2, 1.86% to Rs.65.27 per litre at the end of the week 3; and 0.24% to Rs.65.11 per litre at the end of the last week.
- In the capital city, at HPCL, Indian Oil and BPCL, the highest rate was logged at Rs.68.37 per litre on 31st. Conversely, the lowest price offer was booked at Rs.68.25 per litre on 1st.
- A 3.4 downfall was noted in Mumbai whereas in Pune it was 3.03%. No other factors should be blamed for the downfall in diesel price except the changes in the price of unrefined oil.
Trend in Diesel Price in Maharashtra in March 2018
- In sync with the INR/USD exchange rate and the rate of crude oil (Indian Basket), the opening date price was declared at Rs.66.35 per litre in Mumbai.
- The USD was depreciated to Rs.64.89 against the local currency on 7th and Rs.64.85 on 14th. Unrefined oil also gained a reasonable amount of demand during the first and second weeks.
- Therefore, diesel slowly recovered its price to Rs.67.10 per litre during the first week, Rs.66.89 per litre on 14th, Rs.67.01 per litre on 22nd, and Rs.68.58 per litre on 31st in the city of Mumbai.
- In Pune also, the fuel price jumped to Rs.65.95 per litre, Rs.65.84 per litre, Rs.65.79 per litre and Rs.66.79 per litre on 7th, 14th, 21st and 28th.
- According to official sources, the fuel rates have increased by 3.36% in Pune and Mumbai this month. For the whole quarter, at Rs.68.58 per litre, the highest price was observed in March and the lowest rate at Rs.66.43 per litre in January.
- Both the VAT and the excise duty were retained unaffected between January 2018 and March 2018.
State Taxes and Diesel Price in Maharashtra
As discussed earlier, state taxes form a major portion of diesel price in Maharashtra. Currently, the state government levies 28.41% VAT on a litre of diesel in Mumbai, Navi Mumbai, and Thane and in rest of the state it charges 25.38%.
How often Diesel Price are Revised in Maharashtra
Diesel prices in Maharashtra, similar to rest of the states, are being revised on a daily basis. The daily revision of diesel prices was introduced in June 2017 to bring transparency in the fuel pricing in India.
Also called dynamic fuel pricing, the method aligns the diesel prices in the country to the international crude prices and currency exchange rate. As both the components change on a daily basis, diesel pricing will be revised every day. The new pricing passes even the slightest change in the international crude prices and the currency rates to the end customer immediately. The resultant price change will be in manageable currency limits unlike the previous fortnightly revision which used to give high price shocks to the customers.
Ever since dynamic fuel pricing was implemented all the petrol pumps across the state have been updating the diesel prices every day by 6 a.m. While the automated fuel stations are controlled centrally and are receiving an auto update of revised diesel price, the non-automated petrol pumps are doing it manually.
Customers can find the revised diesel prices on the respective websites of the oil companies. For petrol pump specific rate, they have to send an SMS with dealer code to a designated number. Dealer codes are available at the petrol pumps.
Effect of GST on Maharashtra Diesel Price
GST or the goods and services tax was introduced in India in July 2017 to make the taxew uniform across all the Indian states. Following the implementation of the GST regime, the prices of many of the products and services got affected both positively and negatively. However, the price diesel remain unchanged as diesel along with other fuels is currently kept outside GST. Meaning, the commodities are still being taxed as per the old tax regime, where state and central government levy various taxes.
Therefore, the effect of GST on the diesel price in Maharashtra and elsewhere in India is zero.
If at all it is brought under GST, diesel price would see a significant change in Maharashtra as the highest tax rate under GST is 28%, which is way lesser than the total taxes currently being charged on diesel.
Diesel Rate versus Petrol Rate in Maharashtra
Diesel in Maharashtra is cheaper than petrol because of the tax component involved in the pricing. Just like in any other Indian state, the state and central taxes levied on diesel are lesser than that of petrol, hence once could find the difference in the retail selling price of both of commodities.
The Maharashtra government currently charges 47.94% VAT on a litre of petrol in Mumbai, Thane and Navi Mumbai and in rest of the state it charges 46.81%. The VAT on diesel is 28.41% in the three cities, while it is 25.38% in the rest of the state. The huge difference in the tax rate results in the price difference of petrol and diesel.
Also Check Diesel Price in NearBy Cities of Maharashtra
|Diesel Price In Mumbai||Diesel Price In Pune||Diesel Price In Nagpur|
|Diesel Price In Kolhapur||Diesel Price In Aurangabad||Diesel Price In Thane|
|Diesel Price In Nashik||Diesel Price In Solapur||Diesel Price In Amravati|
*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.