Diesel Price in Mysore
What is the cost of diesel in Mysore? Do you think it is lower or higher compared to other cities? Why is diesel not priced equally? How have the diesel prices in Mysore responded to the GST law? What are the cost aspects of the Retail Selling Price of diesel in the city of Mysore? Should you have similar questions, this page is exclusively for you. The information has been sourced from various official websites.
The diesel rate in Mysore, which is one the largest towns in Karnataka, have been varying every day owing to the adoption of dynamic fuel pricing. In lieu of looking at daily prices, let’s consider the average price to make the study simpler. While reviewed lately in March 2018, the average diesel price in Mysore was more than Rs.63 a litre but less than Rs.64 a litre. It will consist of the state and central governments’ tax. The Government of Karnataka imposes the local tax at 19% (as of March 2018) and, the Government of India enforces the customs duty of Rs.15.33 a litre. These taxes may be changed whenever required.
|Also Know: Diesel Price in Bangalore|
A Comparison of VAT on Diesel within the States of India
Each state enforces the state-level tax on diesel, which can be used for many purposes, including transportation and manufacturing activities. According to the official information unveiled by Petroleum Planning and Analysis Cell, the VAT percentage on diesel in Karnataka is low compared to the neighboring states such as Andhra Pradesh, Maharashtra, Tamil Nadu, and Kerala. In Karnataka, it is just 19%. In Maharashtra, it is 28.41%. It is the highest at 30.86% in Andhra Pradesh. Therefore, the current diesel price in Mysore is low compared to Mumbai, Chennai and Hyderabad. The regional level tax is governed and executed by the respective state government.
System used to Revise Fuel Prices in Mysore
Like other products, the diesel price also gets revised. Each day, oil companies will make sure to reset the diesel rate in Mysore under dynamic fuel pricing. Came into existence in 2017, the concept of dynamic fuel pricing addressed the complexities involved in the previous fuel revision mechanism. It is also practiced in advanced markets. To introduce in all towns in India, the Central Government had executed a 40-day trial in 4-5 cities.
Dynamic fuel pricing is different from the earlier mechanism in terms of the frequency of revision. Each morning, you can find diesel priced differently. The fuel price will fluctuate in accordance the real-time movements in the dollar-and-rupee value and the market rates of crude oil. Today’s diesel price in Mysore is reliant on the previous day’s market undercurrents. Let’s assume that the crude oil’s rate falls by $1 per barrel, this fall is taken into account while setting tomorrow’s fuel price.
Advantages of Dynamic Fuel Pricing
- Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited will uninterruptedly supply the fuel to diesel users in the city of Mysore.
- No governments can influence the fixation and appraisal of the fuel prices in Mysore.
- The Retail Selling Price (RSP) of diesel offered to fuel users in the city is fully translucent.
- Dynamic fuel pricing makes oil companies to align diesel consumers with real-time market movements.
- The system empowers the oil companies to reduce the quantum of time necessitated to maintain regular activities. Cash ledger can be efficiently monitored by oil companies.
Options to get the Latest Diesel Rate in Mysore
In this section, we will discuss several options available to get today’s diesel rate in Mysore. Many people nowadays use advanced mobile phones for various purposes. You may ponder using customized mobile applications such as My HPCL, SmartDrive and Fuel@IOC in order to get fuel rates. These mobile applications can be easily downloaded. You may also get today’s diesel price in Mysore by sending an SMS in the prescribed format.
Computation of Diesel Price in Mysore
The oil companies retain the right to set and review the diesel rate in Mysore. To compute the retail selling price of diesel, oil companies will include all the expenses that are spent in order to convert unrefined oil into diesel. The following table gives you an idea:
|Cost aspects||Diesel rate in Mysore per litre (as of 3 February 2018)|
|Crude oil rate including ocean freight||Rs.4,200|
|One barrel of unrefined oil||159 litres|
|Price of crude oil per litre||Rs.26.42 a litre|
|Cost of operations, landing expenses, refinery transfer price||Rs.7.50 a litre|
|Profit margin of oil marketing companies, freight expenses, transportation overheads||Rs.2.87 a litre|
|Price of fuel after refining||Rs.36.79 a litre|
|Excise duty on diesel||Rs.15.33 a litre|
|Dealer price prior to tax||Rs.52.12 a litre|
|Commission charged by dealers||Rs.2.51 a litre|
|Fuel cost before Value-added Tax||Rs.54.63 a litre|
|VAT at 17% in Karnataka||Rs.10 approximately|
|Retail selling price of diesel per litre in Mysore||Rs.64.63 a litre|
Elements impacting Diesel Price in Mysore
Many forces affect diesel prices in Mysore, including taxes, the dollar-exchange rate, the rate of crude oil etc. The diesel rate should be adjusted by oil selling companies in accordance with the taxes levied by the State Government of Karnataka and the Central Government. If the Central Government determines to cut the excise duty, OMCs have no other options. They have to readjust the fuel price. Similarly, fuel prices (petrol prices and diesel prices) will change domestically if there are any changes in crude oil rates.
Diesel Rate in Mysore vs GST
The Goods and Services Tax (GST) will not consider the diesel for taxation purposes. It is fully exempted till date, including petrol. The GST Council has to design the present tax structure in consultation with the Prime Minister of the country. The execution of GST on fuels (petrol and diesel) is a good idea, but it must be executed in a way that keeps the revenues unaffected. The enforcement of the GST at the maximum rate will also cut the current diesel price in Mysore by Rs.12-13 a litre.
Also Check Diesel Price in NearBy Cities of Mysore
|Diesel Price In Bellary||Diesel Price In Udupi||Diesel Price In Belgaum||Diesel Price In Gulbarga|
|Diesel Price In Kozhikode||Diesel Price In Coimbatore||Diesel Price In Mangalore||Diesel Price In Shimoga|
*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.