Diesel Price in Mangalore
The diesel price in Mangalore encompasses the state levies charged by the local government of Karnataka and the excise duty charged by the Central Government of India and the cost of unrefined oil. As on 3 February 2018, the tax levied on diesel by the Government of Karnataka was 19% and the excise duty levied on diesel by the Central Government was Rs.15.33 per litre.
After the daily price revision on 5 February 2018, diesel traded at Rs.64.84 per litre at Indian Oil Company and almost the same price was observed at Hindustan Petroleum. In fact, you can expect a minute flux in fuel rates in Mangalore from one diesel station to another. All diesel consumers from the city of Mangalore are required to make a note of daily varying fuel prices before they buy. Even slight price variations shall make a noticeable difference to billing amounts especially for heavy diesel users.
|Also Know: Diesel Price in Bangalore|
The Union Budget 2018 vs the Diesel Rate in Mangalore
For the fiscal year 2018-2019, the Union Budget was presented on 1 February 2018 by Arun Jaitley at the parliament. This budget was believed to have been very decisive with respect to diesel prices. As demanded, Finance Minister unveiled the decision to wane the central levy on diesel by Rs.2 per litre. The budget further proposed to withdraw the additional custom duty of Rs.6 a litre, but additionally levied a road cess of Rs.8 per litre. Eventually, diesel prices in Mangalore were left unchanged.
Current Fuel Pricing methodology in Mangalore
Prior to June 16 last year, all public-sector oil marketing corporations used to revise the diesel price once a 15 days, i.e., on 1 and 16 of every month. This fortnightly-based fuel pricing system is no longer in practice. There has been a paradigm shift in the way fuel pricing is done. Today’s diesel price in Mangalore is determined under the dynamic fuel pricing mechanism.
Quarterly Diesel Price Trend in Mangalore between July and September 2018
|Opening date price||Rs.67.91 a litre (As of 7 July 2018)||Rs.69.51 a litre||Rs.71.88 a litre|
|Closing date price||Rs.69.39 a litre||Rs.71.88 a litre||Rs.74.27 a litre|
|Highest price||Rs.70.03 a litre||Rs.71.88 a litre||Rs.74.27 a litre|
|Lowest price||Rs.67.91 a litre||Rs.69.51 a litre||Rs.71.88 a litre|
Diesel Price Trend in Mangalore in July
- Dynamic fuel pricing has been in use since 16 June 2017. It has been deployed in India to bring transparency in fuel pricing like other advanced countries such as Japan, Australia, the USA, etc.
- The revision of diesel prices will happen completely on the basis of the USD/INR rate (exchange rate) and the market price of oil per barrel.
- Diesel price in Mangalore, a major town in Karnataka, was minutely different from other cities in July. It is due to the transportation overhead.
- In July, in Mangalore, diesel retailed between Rs.67.91 per litre and Rs.70.03 a litre. These were the lowest and highest fuel prices for the month.
- The growth rate in diesel prices (2.17%) in Mangalore has been higher than in petrol prices despite the changes in the overseas influencers.
- Except for a few initial days, the price of diesel was increased and decreased in line with the regular influencers.
- Fuel pricing is also impacted by the domestic aspects like the central tax and the sales tax. But, there were no changes in the tax forms.
Diesel Rate Trend in Mangalore in August
- It has been important to notice that the movements in diesel rates in Mangalore were completely different.
- They were increased by a few paise per litre in the first three days of the month and reached the price mark of Rs.70.1 a litre by the first week’s end.
- Oil selling enterprises such as IOCL, HPCL and BPCL did not change the price of diesel until the end of the second week.
- Fuel prices in Mangalore have seen a big jump of Rs.29 paise per litre. They were at Rs.70.47 a litre on the 17th, 18th and 19th of August.
- At Rs.70.81 a litre, the fuel was traded on the 24th, 25th and 26th of this month. Fuel rates were not changed because of the pricing strategies of the oil companies.
- The entities might or might not reduce the price of diesel per litre even though there exists a steady drop in crude oil rates.
Diesel Price Trend in Mangalore in September
- Needless to mention again, the revision of fuel rates happened the way it was done the previous months. Trends were decided accordingly.
- At the month’s beginning, the revised price stood at Rs.71.88 per litre. The same price was provided on the day 2.
- The average price for the week stood at Rs.72.71 per litre whereas the average price for the next week stood at Rs.74.42 per litre.
- The average fuel price fell in the week 3 and week 4 as the State Government of Karnataka declined the sales tax in response to the nationwide strike.
- Because of this fact, the rate of growth in diesel prices in Mangalore was just 3.32%. In other cities, it was in excess of 6%.
- Andhra Pradesh, West Bengal and even Rajasthan have declined the sales tax to make petrol rates and diesel rates cheaper to some degree.
Quarterly Diesel Price Trend in Mangalore between April and June 2018
|Diesel price||Rs.66.50 a litre as on the 24th||Rs.69.88 a litre as on the 31st||Rs.67.79 a litre as on the 26th|
|Highest price||Rs.66.50 booked on the 24th||Rs.69.88 a litre booked on the 31st||Rs.69.83 a litre booked on the 1st|
|Lowest price||Rs.65.22 as on the 2nd||Rs.66.71 a litre booked on the 14th||Rs.67.79 a litre recorded on the 26th|
Diesel Price Trend in Mangalore in April 2018
- Diesel prices have been on the rise since the introduction of dynamic fuel pricing, which is a fuel pricing methodology used to review the prices of both petrol and diesel regularly.
- Under the system of dynamic fuel pricing, the exchange rate and the price of crude oil per barrel will determine the trend, which can be an upward trend or a downward trend.
- Considering the exchange rate and the crude oil price per barrel, diesel was valued at Rs.65.22 a litre in Mangalore as on 02 April 2018. The fuel rate remained unchanged at Rs.65.37 a litre on the 3rd and 4th.
- The fuel price was revised to Rs.65.48 a litre on the 9th, Rs.65.51 a litre on the 10th, Rs.65.48 a litre on the 12th, Rs.65.51 a litre on the 13th and Rs.65.73 a litre on the 16th in the city.
- For the month, the highest diesel rate stood at Rs.66.50. The diesel price, which was offered on 01 April 2018, was also the lowest price for the month.
- Diesel prices in Mangalore, a notable city in Karnataka, produced an upward trend caused by the crude oil cost, which was up marginally this month.
Diesel Price Trend in Mangalore in May 2018
- Triggered by the assembly election in Karnataka in May 2018, diesel rates in the city of Mangalore were consistent between 01 May 2018 and 11 May 2018.
- Indian Oil, Hindustan Petroleum and Bharat Petroleum, the three state-run fuel companies, continued to increase the fuel rate in sync with the global parameters after the second week.
- As on 14 May 2018, diesel price in Mangalore was Rs.66.71 a litre. It further increased to Rs.66.94 on the 15th, Rs.67.38 on the 17th, Rs.68.69 on the 22nd, Rs.69.80 on the 28th and Rs.69.88 on the 31st.
- In May 2018, the average crude oil price per barrel increased by $6 to $75.31 and as a result, diesel rates in the city increased rapidly. The same trend was observed throughout the state of Karnataka this month.
- The highest fuel rate was booked at Rs.69.88 in the city of Mangalore in May 2018. The opening date price was also the lowest fuel price for the month.
Diesel Price Trend in Mangalore in June 2018
- The crude oil market was reported to be sluggish and therefore, crude oil prices kept falling throughout the month of June 2018.
- As on 08 June 2018, a barrel of crude oil was valued at $74.89. It dropped to $74.49 on 15 June 2018, $72.84 on 25 June 2018 and $76.42 on 29 June 2018. The average crude oil per barrel was booked at $73.85.
- In sync with the crude oil rates, the revision of diesel rates in Mangalore was done throughout the month of June 2018.
- By the end of the first week, the fuel rate per litre was Rs.69.35. It decreased to Rs.68.17 on the 21st and Rs.67.79 on the 26th.
- As the cost of unrefined oil fell, the fuel marketing companies reported a downward trend for the month.
- For June 2018, the highest fuel price stood at Rs.69.83. It was also the highest fuel rate for the whole quarter.
- Between April 2018 and June 2018, both forms of taxes remained unaffected. Other domestic aspects were also steady during the quarter.
Dynamic Fuel Pricing
This new fuel revision mechanism is also referred to as daily revision system. The mechanism considers the cost price of unrefined oil and the exchange ratio of USD/INR to reread the diesel rate in Mangalore every day. The revision is either mechanically or manually done at 6:00 a.m. by oil marketing entities, including Shell Oil, Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL) and Indian Oil (IOL) in the city. Therefore, we observe the price of diesel varying on a daily basis.
How do I check the latest Diesel Price in Mangalore?
It is very simple! Fuel consumers have three options to do so. The first option is to get the customised mobile applications downloaded on your mobile phones. The second option is to make use of SMS services and the third option is to make use of customer care services offered by each oil marketing company. Most fuel consumers prefer checking the current diesel price in Mangalore through online means.
Why Dynamic Fuel Pricing?
- Dynamic fuel pricing is beneficial from the perspective of both, fuel users and marketing entities.
- It does not have a waiting period of 15 days like before. The downs and ups in the rate of crude oil and the exchange rate are quickly transmitted to consumers.
- It helps OMCs to reduce operational expenses and time.
- OMCs can maintain an optimal level of stocks.
- Cash inflows and outflows remain unchanged for OMCs.
- OMCs can easily strike a balance between liquid assets and current liabilities.
Computation of the Retail Selling Price of Diesel in Mangalore as on 3 February 2018
The following table explains the computation of the retails Selling Price of Diesel in Mangalore:
|Cost Elements||Diesel Rate per litre|
|Crude oil rates including freight||$65.5 per litre or Rs.4,200|
|1 Barrel||159 litres = 1 barrel|
|Crude oil rate a litre||Approximately Rs.26.41 per litre|
|Computation of OMC overheads|
|Overall operational overheads||Approximately Rs.7.5 per litre|
|Profit margin of OMCs||Approximately Rs.2.87 per litre|
|Cost of Fuel after refining||Approximately Rs.36.79 per litre|
|Excise duty plus road cess levied on 1 February 2018||Approximately Rs.15.33 per litre|
|Dealer price||Approximately Rs.52.12 per litre|
|Commission imposed by diesel dealers||Approximately Rs.2.51 per litre|
|Diesel cost before VAT||Approximately Rs.54.63 per litre|
|VAT on diesel in Karnataka||19%|
|RSP of diesel||Rs.64.07 per litre|
Why has the Diesel Price in Mangalore increased over the last one year?
- The cost price of Brent Crude oil has increased by almost 10%.
- The commission charged by dealers has increases by Rs.1 per litre.
- The profit margin of OMCs has increased marginally.
Which factors affect the Diesel Price in Mangalore?
- INR/USD conversion rate: It is a most commonly traded exchange rate in the Forex market. Since the cost of crude oil is traded globally, the exchange rate directly affects the buying price of unrefined oil in India. Eventually, the RSP gets affected.
- Taxes: Diesel is taxed domestically. If the government reduces the tax, the diesel price also reduces and vice versa. We can take the example of the central tax, which was lowered by Rs.2 per litre in the month of October 2017.
- Crude oil rates: We have seen crude oil rates growing consistently in the last 12 months. It is a primary cost component that directly affects the RSP of diesel. In overseas markets, if crude oil rates increase, the RSP of the fuel increases and vice versa.
Diesel Price in Mangalore Today vs GST
Is diesel taxed at the GST rates? No, it isn’t! The Goods and Services Tax (GST), which has been a new tax system, imposes tax at 5%, 12%, 18% and 28% on all types of commodities and services. But, diesel is not taxed at the GST rates. So, the present tax system leaves the diesel rate unaffected. The opposition parties are continually building pressure on the GST Council to tax diesel at the GST rates.
Also Check Diesel Price in NearBy Cities of Mangalore
|Diesel Price in Chennai||Diesel Price in Bangalore|
|Diesel Price in Hyderabad||Diesel Price in Pune|
|Diesel Price in Mumbai||Diesel Price in Coimbatore|
*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.