Diesel Rate in Mumbai
|About Diesel Price in Mumbai|
Trend of Diesel Price in Mumbai for September 2019 (rates per litre)
|Highest Rate in September||Rs.68.28|
|Lowest Rate in September||Rs.68.24|
September - Week 1 (1-7):
- Diesel prices in Mumbai opened at Rs.68.28 per litre for the month of September. The prices were kept unchanged from the previous day due to soft demand for the fuel.
- The rates stayed constant for the next three days before slipping by 2 paise on 5 September to Rs.68.26 per litre. Crude oil prices in the international oil market climbed after the United States confirmed of trade talks with China in the coming months.
- Petrol prices slid further on 6 and 7 September to close the week at Rs.68.24 per litre. The overall performance of diesel in Mumbai for the first week of September was -0.05%.
Trend of Diesel Price in Mumbai for August 2019 (rates per litre):
|Highest Rate in August||Rs.69.22|
|Lowest Rate in August||Rs.68.23|
August 2019 – Week 1 (1-7):
- Diesel price in Mumbai opened at Rs.69.22 per litre on 1 August, its highest recorded price of the week. State-run oil marketing companies decided not to alter the rates of diesel in spite of weak demand of crude in the international market. Meanwhile, in the international crude oil market, crude prices dropped after the US Federal Reserve squashed the chances of possible rate cuts. However, the petrol witnessed a massive drop in its price.
- Diesel remained unchanged for the next couple of days, before dropping to Rs.69.16 per litre. Meanwhile, in the international market, crude prices fell amid worries over weaker demand after the Trump administration said it would impose tariffs on more Chinese imports.
- Diesel closed the week at Rs.69.16 per litre, its lowest recorded price till now in the month of August. The overall decline in diesel price in Mumbai recorded in the first week of August is -0.08%. In the international oil market, crude price dropped owing to US-China trade tensions.
August 2019 – Week 2 (8-14):
- Diesel in Mumbai opened at Rs.69.05 per litre on the second week of August, recording an 11 paise drop from previous day’s closing price.
- Diesel slumped further by 14 paise on the next day, standing at Rs.68.91 per litre. The dip was primarily due to the ongoing US-China trade tension, fuelled further by Trump administration’s decision to impose more tariffs on Chinese imports.
- Diesel price in Mumbai dropped slightly in the next few days before stabilising at Rs.68.57 per litre. The overall performance compared to the opening day was -0.93% (decline). Meanwhile, in the international oil market, crude prices dropped due to possible supply cuts amidst looming global economic crisis.
August 2019 – Week 3 (15-21):
- Diesel in Mumbai opened at Rs.68.57 per litre, unchanged from previous day’s closing price.
- Diesel slumped to Rs.68.30 per litre on 19 August. The drop was primarily due to weak demand of the oil in the local market.
- Diesel slumped further before stabilising at Rs.68.23 per litre. The overall performance of diesel in Mumbai was -1.43%, trending downwards. Meanwhile, in the international market, crude gained after a drop in US inventories. However, the gains were not that great due to concerns pertaining to global economic slowdown.
August 2019 – Week 4 (22-31):
- Diesel price in Mumbai opened at Rs.68.23 per litre on 22nd August, unchanged from previous day’s closing price. After staying stable for the next few days, diesel prices shot up, recording Rs.68.48 per litre on 26th August. In the international oil market, crude gained after slump in US inventories.
- Diesel rate slumped soon after, closing the month at Rs.68.38 per litre. In the international market, crude suffered due to concerns about the strength of the US economy.
- The overall performance of diesel in Mumbai was -1.21%, trending downwards.
Also Check Diesel Price in Metro Cities
|Diesel Price n Hyderabad||Diesel Price in Delhi||Diesel Price in Bangalore|
|Diesel Price Kolkata||Diesel Price in Chennai||Diesel Price Pune|
Trend of Diesel Price in Mumbai for July 2019 (rates per litre)
|Highest Rate in July||Rs.69.95 on 7 July|
|Lowest Rate in July||Rs.67.39 on 1 July|
July 2019 – Week 1 (1-7):
- Diesel price in Mumbai stood at Rs.67.29 per litre on 1 July. This marked a slight increase in price than the previous day’s closing rate. The hike was majorly due to oil marketing companies’ decision to revise the rates.
- The prices further increased on the second day by Rs.0.06 per litre, thereby trending at Rs.67.45 per litre on 2 July. Again, the increase in momentum was primarily due to the revised rates as implemented by the oil marketing companies. The prices remained unchanged for the next few days until 6 July.
- Diesel price in Mumabi witnessed another major hike on 7 July and closed the week at Rs.69.95 per litre. The major surge was primarily due to the hike in excise duty and cess on road and infrastructure—a move announced by the Indian Government during Budget 2019.
July 2019 – Week 2 (8-14):
- The diesel price in Mumbai on 8 July stood at Rs.69.85 per litre – the highest price recorded during the week after the Central Government, in its 2019 Budget, increases excise duty on petrol and diesel by Rs.2 per litre to fund its social welfare schemes, and road and infrastructure.
- Prices continued to decline during the week amid decline in crude oil prices in the international oil market after the OPEC and its allies continued to cut production to keep prices of crude stable despite the tensions in the Middle East and the ongoing trade war between the US and China.
- By the end of the week, diesel prices in Mumbai fell by 0.53% primarily due to the decline in crude oil prices in the global market due to supply cuts led by the OPEC.
July 2019 – Week 3 (15-21):
- Diesel was priced at Rs.69.48 per litre when the week began, this was also the lowest diesel price in Mumbai recorded during the week amid a slight decline in crude oil prices after China announced the slowest quarterly economic growth in 27 years signalling a weak demand from China.
- Oil Marketing Companies (OMCs) kept diesel priced in unchanged during the entire week despite rising crude oil prices in the market amid escalating tensions in the Middle East and the trade war between the US and China which could impact the global economy.
- Crude oil prices continued to rise amid tensions in the Middle East after the US shot down an Iranian drone and the slowdown of the Chinese economy prompting a decline in demand from the world’s largest crude oil importer.
July 2019 – Week 3 (15-21):
- Diesel price in Mumbai on 22 July stood at Rs.69.48 per litre, the highest price recorded during the week and remained unchanged until 24 July primarily due to lack in demand for crude oil in the international market amid escalating tensions in the Middle East.
- On 25 July, prices of diesel were reduced by 7 paise per litre to be sold at Rs.69.41 a litre despite an increase in crude oil prices amid declining US inventories and after the US said that it may have shot down another Iranian drone.
- By the end of the week, diesel prices in Mumbai declined as crude oil prices were down amid possible decline in demand for oil. Additionally, Goldman Sachs had earlier cut its 2019 oil demand projection, thereby lowering the demand for crude oil in the international market.
Trend of Diesel Price in Mumbai for June 2019 (rates per litre)
|Highest Rate in June||Rs.77.16|
|Lowest Rate in June||Rs.75.60|
June 2019 – Week 1 (2-8):
- On 2 June 2019, diesel price in Mumbai stood at Rs.77.16 per litre, down by 15 paise compared to 31 May.
- The fuel’s price fell consistently in the week, closing at Rs.76.60 per litre on 8 June, down 56 paise, or 0.73% from 2 June.
- The initial days of the week saw a decrease in crude oil prices globally, but they became stable as the week ended. This boosted the dip in diesel cost across India.
June 2019 – Week 2 (9-15):
- Mumbai diesel price in Mumbai were at Rs.76.60 per litre on 9 June and closed 94 paise lower at Rs.75.66 on 15 June.
- This 1.23% fall happened because of stable crude oil prices amid prospects that the Organisation of Petroleum Exporting Countries (OPEC) will hold back supplies. With economies across the world expected to slow down in the next few months, diesel demand is on a downtrend.
June 2019 – Week 3 (16-22):
- diesel price in Mumbai held steady at Rs.75.60 in the third week of June.
- However, crude oil saw a downtrend in prices, as investors were cautious about the impact that US-China trade friction will have on global economic growth.
June 2019 – Week 4 (23-30):
- Starting at Rs.75.60 on 23 June, Mumbai diesel prices rose to Rs.76.04 on 30 June. This was a rise of 44 paise (0.58%).
- June’s overall price movement for diesel was a decline of 1.45%.
- Even as the G20 summit was on and the OPEC was meeting with other oil producers, crude oil prices fell at the opening of the week. But by 26 June, they started rising as US stockpile of crude was found to be less than estimated.
Diesel is an important fuel for the development of an economy. It offers a huge array of efficiency, performance, and security features. The fuel also has a greater energy compactness compared to other fuels. Diesel is used everywhere, right from transportation, construction, and industrial production. Needless to say, Mumbai, the capital city of Maharashtra, is the largest consumer of diesel with a big number of diesel-run vehicles. The industrial production and construction sectors are growing briskly and, as a result, diesel is in high demand in the city.
A retail or an institutional diesel consumer somebody like you from Mumbai would want to know the mechanism used to fix the price of diesel, the price breakup of diesel, and the forces impacting the price of diesel. What do you think about the Goods and Services Tax (GST)? Whether or not the GST affects diesel rates. Besides, there are many news around diesel this fiscal year. Have you observed? The following sections will discuss each of these aspects in detail:
|Also Check: Diesel Price in Naded|
Trend in Diesel Price in Mumbai
Diesel rates in Mumbai were moving in an upward direction since 16 June 2017 until 3 October 2017. The current rate is Rs.60.55. It fell by Rs.2.27 since the central government cut the excise duty by Rs.2 on diesel. Let’s analyse prices month by month:
Rates have grown by 2.96% in September. The highest rate was Rs.62.58 whereas the lowest Rs.60.68. In August, the lowest price was Rs.59.04 whereas the highest Rs.60.96. Prices have increased by 2.57% for the entire month. On the opening day of July, diesel was priced at Rs.58.53 and at Rs.59.08 on the closing day. Rates were up by Rs.0.76 for the complete month.
Diesel Rates in Mumbai and other Prime Towns
After cutting the central excise duty, diesel has become cheaper across all metro cities of India. Needless to say, diesel and petrol rates in the capital city of Maharashtra are comparatively more. Prices are expected to be stable over the next month.
What is the Mechanism for Revising Diesel Price in Mumbai?
The fortnightly-based revision has now been replaced by the daily revision since 16th June 2017. All diesel outlets in the city will update fuel prices on a day-to-day basis. Diesel is priced based on two important considerations: 1) the performance of crude oil in overseas markets and 2) the performance of the Indian currency against the currency of the United States of America.
Neither the central government nor the state government has no scope to influence the pricing of diesel under the new system. Fuel consumers shall now pay the rates, which are determined by two factors mentioned in the previous section. The move is beneficial for consumers and dealers as well. In fact, the daily revision is being practiced by two major economies of the world: 1) the United States of America and 2) Australia.
|Also Check: Diesel Price in Maharashtra|
The move not only entrusts transparency in fuel pricing but also fosters the best stock management practices. Since all oil marketing companies are practicing the daily revision, they have framed a few customer-friendly recipes to track the recent updates. For instance, customers can send a text message or dial the customer care number requesting for current rates.
How are Diesel Prices in Mumbai Calculated?
The cost of a litre of diesel in Mumbai is assessed by adding the cost price of crude oil (including freight charges), the cost of converting raw oil into diesel (called as the refinery transfer price), the element of tax imposed on diesel by the state and the central, the commission paid to dealers for supplying diesel from refinery centres, and pollution cess. These are various elements of the price structure of the fuel.
The average price of oil is projected to be $52 for the current fiscal year. Projections are made by the United States (US) Energy Information Administration on a monthly basis. Diesel, as mentioned in the earlier section, is a widely used commodity and taxed by the state and the central. The tax component is subject to fluctuate. Currently, the government of Maharashtra levies 21% VAT on diesel.
Refinery transfer price (RTP) is the cost incurred by oil marketing companies (OMCs) to convert unrefined oil into diesel. Oil marketing companies add their profit margin on the buying cost of crude oil and the cost of refineries. The commission, which is charged by dealers, is fixed per litre. It may change within the Mumbai city.
Forces Affecting Diesel Price in Mumbai
The retail selling price (RSP) of diesel in Mumbai, like any other cities in India, is impacted primarily by the cost price of crude oil, the exchange rate, and the tax component. On the other hand, the purchasing price of unrefined oil is affected by seasonal variations, weather reports, global demands, global political moves, overseas surpluses and supplies, and the currency conversion ratio.
The Cost of Diesel will increase if:
- The cost of crude oil increases.
- The Indian currency deteriorates against the base currency (USD).
- The central or the state increase the tax component on diesel.
On the other hand, the Cost of Diesel will decrease if:
- The cost of crude oil reduces.
- The Indian currency bounces back against the base currency (USD).
- The tax component is decreased by the state and the central.
How does the GST Impact Diesel Price in Mumbai?
Goods and Services Tax (GST) now replaces all indirect tax forms. All taxpayers are brought under the common taxation platform. GST is the biggest reform in the history of Indian tax system since Independence. The GST regime does not influence all petroleum products and the entire oil and natural gas industry since they have kept outside the purview of GST. The execution of GST on petroleum products makes them cheaper for consumers. The compliance cost incurred by all industry stakeholders will increase by 200%.
Petrol Cost vs. Diesel Costs in Mumbai
As on 10 October 2017 (the current rate of diesel), diesel was priced at Rs.60.55 a litre whereas petrol at Rs.77.58. The net difference as on the latest date was Rs.17.03 in the city.
Also Check Diesel Price in NearBy Cities of Mumbai
*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.