Diesel Price in Nashik
What is the average diesel price in Nashik? What is the trend? Though diesel is not a commercial commodity like stocks or currencies, many people still want to understand the trend in the diesel price. Diesel rates tend to fluctuate within the Indian states. It is because of the VAT component. This article speaks about various categories of fuel pricing keeping in mind the diesel consumers from Nashik, which is one of the notable towns in Maharashtra. In March 2018, the average diesel rate in Nashik was Rs.66.40 a litre, including a central levy of Rs.15.33 a litre and a state-level tax (VAT). In Nashik, the Value-added Tax (VAT) is 25.38%. It was 28.41% in Mumbai, Thane and Navi Mumbai as of September 2017.
Analysis of Diesel Prices in Nashik
Over the last four months, diesel prices have jumped to their 4-year highs in Nashik in response to continually increasing crude oil rates. The cost of a barrel of crude oil is currently hovering around $65. This was down 20% a year ago. In January 2018, diesel was priced at Rs.62.88 a litre by oil companies, including Bharat Petroleum, Hindustan Petroleum and Indian Oil. In the subsequent month, it jumped to Rs.67.76 a litre. The price further fell to Rs.65.80 a litre in the month of March 2018. We could observe both upward and downward trends since the last three months. The diesel price in Nashik has been changing owing to dynamic fuel pricing. What is that? Read the following section.
Dynamic Fuel Pricing
All the publicly-owned oil companies are presently revising the diesel price in Nashik under the dynamic fuel pricing mechanism since the last 9 months. It is a substitute for the previous fortnightly-based fuel revision system. Prior to June 2017, the revision of fuel prices used to happen twice a month. The newly deployed system resets the current diesel rate in Nashik regularly in tandem with the currency exchange rate and the price of crude oil. As a result, fuel consumers from all parts of the country are aligned to market dynamics. You can expect a price hike or a price drop. It totally depends on the movements in the rate of unrefined oil and the exchange rate. If there is a drop in crude oil rates, fuel buyers will be instantly benefited.
|Also Know: Petrol Price In Nashik|
Prime Features of Dynamic Fuel Pricing
- The oil companies operating throughout the city of Nashik should provide a revised fuel rate at 06:00 a.m. The revised price may be exhibited within the premises.
- The automated diesel stations will be able to automatically revise fuel prices in Nashik instead of doing it manually.
- Dynamic fuel pricing supports the automation drive of oil marketing enterprises. Therefore, they will be able to reduce day-to-day expenses.
- Cash receipts and payments can be optimally balanced by fuel retailers as well in the city.
Smart Ways to get Today’s Diesel Price in Nashik
You may use mobile applications to obtain today’s diesel rate in Nashik. Today, there are three mobile applications in use. SmartDrive, a mobile application designed by Bharat Petroleum Corporation Limited, provides you with an opportunity to elicit information related to general insurance. Many people prefer using Fuel@IOC because of its unique features. It is offered by Indian Oil Company and is easy to use and download. My HPCL is a mobile application designed by Hindustan Petroleum. Even this mobile application offers premier features. Besides, the latest fuel rates in Nashik can also be obtained through an SMS request.
Computation of Diesel Rate in Nashik
Diesel pricing is a complex process. It will be done by oil companies in India. The role of the government is limited to levying taxes. Both domestic and international aspects will be taken into account to price the fuel. Crude oil is borrowed from OPEC countries by paying in dollars. Many factors impact the cost price of crude oil. The common influencers include global politics, the operational efficiency of OPEC nations, the supply and demand patterns of crude oil, etc. As of March 2018, the price of a litre of unrefined oil was Rs.26.42. It will be computed by multiplying the USD/INR exchange rate by the cost price of a barrel of unrefined oil.
The costs incurred by oil marketing are further added. They are envisioned to be Rs.8 a litre as of March 2018. After adding the OMC expenses, the cost of the fuel will be Rs.36.79 a litre. A central tax of Rs.15.33 a litre is then included. After the excise duty, the price charged to dealers will be Rs.52.12 a litre. The dealer’s commission of Rs.2.51 a litre is also added. Now, the price of the fuel before VAT will be Rs.54.63 a litre. Finally, the VAT in Nashik is charged at 25.38%.
Factors Affecting Current Diesel Rates in Nashik
The exchange rate of the INR/USD, overseas crude oil rates, both state-level and central-level taxes, the productivity of OPEC countries, the supply and demand for crude oil and weather reports large affect diesel rates in the domestic market. If the USD devalues against the INR steadily, you can expect a price drop. On the other hand, when the INR drops steadily against the USD, you can expect a price fall. The Indian oil companies have to reset fuel prices in response to changes in the VAT and the central tax.
GST vs Diesel Price in Nashik
Diesel has been outside the purview of the GST ambit till date. Even petrol and its sub-products are also not taxed under GST. Bringing diesel under the GST regime will have a negative impact on the government’s earnings. Even state governments will incur losses. If levied at 28%, the current diesel rate in Nashik is expected to fall by 20%. The existing GST rates must be readjusted in order to impose GST on diesel in India. It is the GST Council that retains the right whether or not to affect the GST system on fuels.
Also Check Diesel Price in NearBy Cities of Nashik
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|Diesel Price In Nagpur||Diesel Price In Amravati||Diesel Price In Sangli||Diesel Price In Jalgaon|
*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.