Diesel Price in Nagpur
Nagpur, a primer city in Maharashtra, is one of the largest Indian cities as far as the consumption of diesel is concerned with a growing number of diesel-run automobiles and industrial units. Diesel is consumed by both retail and institutional users. Retail users could be motorists whereas institutional users could be the owners of manufacturing units. With increasing consumption, the diesel rate in Nagpur is also increasing like other cities. So far the current year, the average diesel price a litre in the city is Rs.65.80a litre and this price consists of crude oil rates and the central and state levies.
Historical Diesel Price in Nagpur April 2017 – Jan 2018
When the fuel price reviewed on 2 April 2017, it stood at Rs.60.41 a litre and at Rs.62.23 a litre on 1 May 2017. It dropped to Rs.60.80 a litre when it was revised on 1 June 2017. The fuel was priced at Rs.57.70 a litre on 1 July 2017. As dynamic fuel pricing came to effect in post mid-June 2017, the diesel rate in Nagpur declined for the first 15-20 days and after that, they began increasing.
|Also Know: Petrol Price In Nagpur|
The fuel prices were Rs.58.21 a litre and Rs.59.83 a litre on 1 August 2017 and 1 September 2017 respectively. Further, it improved to Rs.61.71 a litre on 1 October 2017 and again dropped to Rs.59.47 a litre on 1 November 2017. This reading interprets that diesel prices throughout the year were not consistent in the city.
Central and State Levies on Diesel in Nagpur
The central tax on diesel was declined recently on 3 October 2017 by Rs.2.00 a litre. The local government of Maharashtra taxes diesel currently at 28.41%. The central tax is the same across the nation, but state levies change from one state to another. Karnataka taxes diesel at 19% and Tamil Nadu at 25%. As far fuel rates are concerned, Maharashtra is expensive because of hefty local taxes.
What is the present mechanism used to revise the Diesel Price in Nagpur?
Well, we are presently in the era of dynamic fuel pricing that complements the previous fortnightly-based revision. The fundamental difference between dynamic fuel pricing and fortnightly-based revision is the regularity of revision. The current dynamic fuel pricing approach updates the current diesel price in Nagpur every day whereas the earlier fuel pricing system used to revise the fuel rate once a fortnight. But, the way in which fuel pricing is done is the same.
India ran a 40-day pilot in 4 cities before introducing this system. Today, this system is used by all diesel outlets across the country and was implemented in July 2017. The system considers the conversion rate of the Indian currency against the currency of the United States of America and the rates of crude oil in transnational markets. Since these two aspects vary every day, diesel is priced differently every day in the city of Nagpur.
Benefits of Dynamic Fuel Pricing
Dynamic fuel pricing is advantageous for both oil marketing companies (OMCs) and diesel consumers. OMCs can easily manage inventory and working capital, the difference between liquid assets and current liabilities. Transparency in fuel pricing can be brought. Moreover, all OMCs including, Hindustan Petroleum, Bharat Petroleum, Indian Oil and Shell Oil can effectively manage their cash inflows and cash outflows. Dynamic fuel pricing helps diesel consumers in Nagpur by letting them pay market-determined prices.
How to get the Diesel Price in Nagpur today?
Since diesel prices are changing day-by-day, be advised to trace the current rate. You can do it online and offline as well. All oil marketing corporations developed mobile apps to aid fuel consumers from the city of Nagpur to get the latest diesel price. This is a good option for smartphone users, but non-smartphone users can make use of offline methods such as SMS services and customer care services. The latest fuel price in Nagpur can be obtained sending an SMS or calling the customer care number.
Today Diesel Price in Nagpur- How is that computed?
Diesel price in Nagpur today = Crude oil rates + central taxes + VAT (state tax) + OMC overheads + OMC profit margin + commission charged by dealers + pollution cess
- Cost of crude oil: Crude oil is not a domestic commodity and is imported by India on a contractual basis from oil-producing nations. As on 25 January 2018, the price of a barrel of Brent Crude Oil was $68 and it is expected to climb to $100 over the next one year.
- OMC overheads: The diesel rate that is paid finally by customers in Nagpur includes all overheads spent by OMCs. The major overheads include refinery transfer price (RTP), entry levies and freights. OMCs add their profit margins to the total amount of expenses incurred by them.
- Both the central and state levies account for 50% of the RSP, the retail selling price, and they are subject to vary. In October 2017, a few Indian states including Maharashtra reduced state levies following the instruction of the center.
Why do Diesel Prices in Nagpur change?
Like mentioned earlier, the diesel price today in Nagpur is determined under the daily revision system that takes into account the exchange rate and unrefined oil costs. These price determinants are global factors. The fuel price in Nagpur falls when the USD drops vs the INR and vice versa. Similarly, when the cost of crude oil increases globally, the fuel price goes up and vice versa. The price is also affected by the local and central taxes.
GST from the perspective of the Diesel Price in Nagpur
All types of goods and services are taxed currently under the Goods and Services Tax (GST) system at 5%, 12%, 18% and 28%. The GST exempts diesel. Therefore, it has no impact on diesel prices. Had the GST imposed on diesel, the fuel would have been cheaper for consumers. But, it would have adversely affected the revenue source for the government. Recently, the Finance Ministry has been asked to tax petrol and diesel under the GST purview.
*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.