Diesel Price in Nanded
This fuel page is for diesel users from Nanded, a city in Maharashtra. The primary objective of the page is to discuss the important aspects related to the retail fuel sector and help you understand the recent developments of the sector. A key aspect that should be covered is the role of the fuel brands in India, which is one of the biggest importers of unrefined oil from other countries. The country has three state-owned fuel entities, which include Indian Oil (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (BPCL), Sometimes, these are referred to as Oil Marketing Companies (OMCs). Diesel is marketed by OMCs though fuel dealers in each part of the country, including the city of Nanded.
How do Fuel Companies Revise Diesel Price in Nanded?
Fuel companies are liable to revise fuel rates. Since June 2017, they have been following the system of dynamic fuel pricing to revise the prices of diesel and petrol as well. The revision will take place on a daily basis based on the fluctuations in transnational crude oil rates and the exchange rate. Let’s assume today’s diesel price in Nanded is Rs.70 per litre at Indian Oil. You cannot expect the same price tomorrow. If both the exchange rate and unrefined oil rates remain unchanged today, the same fuel rate can be retained. If not, fuel rates in Nanded are required to be adjusted accordingly. This is how dynamic fuel pricing functions across the country.
|Also Know: Diesel Price in Maharashtra|
Benefits of Dynamic Fuel Pricing
Dynamic fuel pricing is extremely useful for consumers and the OMCs. Consumers envision 100% transparency in the revision of fuel rates. The newly deployed fuel pricing mechanism made this possible. They also expect the steady distribution of widely used fuels such as diesel and petrol. Under this system, neither petrol rates nor diesel rates will fall or increase by a big margin. Therefore, it may not be a problem for the OMCs to supply the fuels constantly. For large-scale business entities such as IOCL, HPCL and BPCL, the effective management of working capital and cash budget is significant. Dynamic fuel pricing helps them in this regard.
Tips for Diesel Customers to Trace the Latest Diesel Rate in Nanded
Downloading the mobile application(s) is the easiest way to get the current fuel rate in your city. There are three customer-friendly mobile applications used today. If you are intending to get today’s diesel rate offered at IOCL fuel stations, consider downloading Fuel@IOC, which is a mobile application offered by Indian Oil. Likewise, My HPCL, a mobile application provided by Hindustan Petroleum, can be downloaded and used in order to trace the price. The mobile application developed and offered by Bharat Petroleum is SmartDrive, which helps you trace the current diesel price in Nanded and other cities. Fuel brands also advise you to make use of SMS services for the same purpose.
- If you are a regular customer of Hindustan Petroleum, forward an SMS request to 9222201122.
- BPCL customers can send an SMS request to 9223112222.
- Similarly, IOCL fuel consumers can send an SMS request to 9224992249.
|Also Know: Petrol Price In Nanded|
Note: To avail the SMS service, you need to furnish the dealer code, which is provided at fuel supply stations.
How are Diesel Prices in Nanded Computed?
You buy diesel at a certain price, which is computed by the OMCs. The price, which is finally charged to consumers, is called retail selling price. As we all know, diesel is derived from crude oil, which is exported by other countries. The cost incurred to import unrefined oil or crude oil is called the cost of crude oil. As on 3 June 2018, the crude oil cost per litre was Rs.32.98. The imported unrefined oil shall be converted into diesel at refineries. OMCs spend several types of expenses such as landing costs, entry taxes, administration overheads, refinery transfer price, transportation overheads, freight charges, etc. The total amount of expenses incurred by the OMCs on diesel per litre was above Rs.8 as on 3 June 2018.
Taxes are a primary cost aspect included in diesel price in Nanded. They include Value-added Tax and excise duty. VAT is charged by states whereas excise duty is imposed by the Government of India. Since Nanded is a city in the Indian state of Maharashtra, the State Government of Maharashtra will fix the percentage of VAT to be imposed on diesel per litre. According to an official report released by Petroleum Planning and Analysis Cell, it was 21.97% on 1 April 2018. Unlike VAT, excise duty will always be stated in terms of rupees and was Rs.15.33 a litre in June 2018. Fuel dealers in all cities will collect a certain amount of commission, which was Rs.2.53 a litre on 3 June 2018.
Put simply, the selling price of diesel in Nanded = Taxes (VAT and excise duty) + crude oil costs + commission for dealers + expenses incurred by the OMCs + pollution cess
Factors Affecting Diesel Rate in Nanded
Unlike other commodities, the price of diesel cannot be the same. The price of diesel per litre in Maharashtra will differ from the rate of diesel per litre in its neighboring states such as Karnataka, Telangana, Chhattisgarh, Gujarat and Madhya Pradesh. It is because of VAT, which impacts the pricing of both petrol and diesel across India. Excise duty is another influencer. Diesel price in Nanded is revised in tandem with the variations in these two forms of taxes. Crude oil rates and the USD/INR exchange rate also have a direct impact. Fuel prices in the city will increase if the USD devalues against the INR and oil exporting countries increase the price of unrefined oil per barrel and vice versa.
Impact of GST on Diesel Price in Nanded
No consumers will pay GST on diesel today. GST is an indirect tax introduced in India in July 2017. It is not levied on diesel. Therefore, diesel buyers across the country have continued to pay the regular taxes. In other words, fuel rates in Nanded remain unaffected by the current tax framework, which is GST.
Also Check Diesel Price in NearBy Cities of Nanded
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*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.