Diesel Price In Patna Today

Daily Diesel Rates
Date Diesel ( / liter)
15 Dec 2018 ₹ 67.76
14 Dec 2018 ₹ 67.76
13 Dec 2018 ₹ 67.85
12 Dec 2018 ₹ 67.85
11 Dec 2018 ₹ 67.85
10 Dec 2018 ₹ 68.06
09 Dec 2018 ₹ 68.78
08 Dec 2018 ₹ 68.78
07 Dec 2018 ₹ 68.78
06 Dec 2018 ₹ 69.18

Diesel Price In Patna

There are numerous factors that affect the diesel price in Patna but the key aspect among them is the international crude oil rates. However, this isn’t the only component that is used in determining the retail price of diesel. To help you understand better, here is a detailed article that explains the various factors that affect the diesel rates in Patna and the type of fuel pricing mechanism it employs. But before that here is a quick introduction to Patna’s economic and industrial growth.

Economy Of Patna

Patna is not only the capital but also the biggest city in the state of Bihar. It is about 18 km in width and 35 km in length. With an estimated population of more than 2 million, Patna is reported to be India’s 19th biggest city.

The city is located on the banks of the River Ganges. However, it also connects with the rivers Punpun, Gandak, and Sone.

Also Know: Petrol Price In Patna

According to the World Bank, Patna ranks as the second best place to start a business. With an incredible growth, the city is reported to be the 5th fast growing cities in India and 21st in the world. Patna has consistently been one of the major agricultural hubs and trade centers in India. Its active exports include sesame, medium-grained rice, grain, and sugarcane. Apart from these, the city also features various sugar mills and is in fact, a vital business center in Eastern India.

Patna’s economy has shown continuous development since 2005 and is reported to be the best in FMCG (Fast-Moving Consumer Goods) sector.

Factors That Affect Diesel Price In Patna

The retail price of one liter of diesel is reflected by the profit (or loss) and cost of manufacturing as well as delivering it to the consumers. Though there are several factors that affect the fuel rates in Patna, the primary components include:

  • Cost of the crude oil bought by the refinery
  • Profit margin
  • Refining cost
  • Marketing cost
  • Petrol pump cost
  • Distribution cost
  • Marketing cost
  • Taxes

The retail price for one liter of diesel not only differs from time to time but also varies based on the geographical location of a place.

1. Cost Of Crude Oil

The cost of crude oil is one of the biggest and key components in determining the price of diesel. Crude oil is one of the major raw materials for extracting diesel. Currently, India’s 75% of the crude oil requirements are met by imports. Therefore, foreign exchange rate and international crude oil cost form the key aspects in deciding the retail price of diesel.

On the other hand, global supply and demand also help in determining the price of crude oil. The global economic situations contribute a lot to the overall demand for petroleum products that are made from crude oil. Since diesel is one of the primary fuel used for transportation, its demand usually depends on the economic trends.

2. Oil Production Companies

An oil production company is completely responsible for manufacturing oil in crude form. These companies are usually a blend of both private and public sectors. Private companies include Carin India Limited, Reliance Industries Limited, etc. whereas public sectors include ONGC (Oil and Natural Gas Corporation), Oil India, etc. Together, both sector can only cater about 25% of India’s crude oil requirements and the rest is imported.

3. Oil Marketing Companies

The OMCs (Oil Marketing Companies) then bring the crude oil from oil refineries and handle it right from its crude phase to delivery phase. In short, the Oil Marketing Companies are in charge of refining the crude oil and converting it into diesel. Finally, the refined diesel is sold to the dealers.

Even this sector features both public and private companies. But these three control about 95% of the business:

  • IOCL – Indian Oil Corporation Limited
  • HPCL – Hindustan Private Corporate Limited
  • BPCL – Bharat Petroleum Corporation Limited

The above three are public sector companies whereas Essar & Reliance Industries cater the remaining marketplace.

4. Tax

The tax imposed on diesel differs from one nation to the other. Whenever there is an incline or decline in fuel rates, the tax is a key element for it. Tax policies resolve the cross-country breaks between gasoline and diesel prices largely.

5. Rise In Demand

Generally, whenever the demand for a commodity goes up, the price of it also increases. Talking about an all-time required commodity like fuel, though it is consistently in demand, there are times when it reaches its peak. This usually happens more often in developing countries like India and China.

What Fuel Pricing System does Patna Follow?

Currently, not only Patna but also every region (small and big) in India follows the mechanism of “dynamic fuel pricing system.” It was implemented on June 16, 2017, to overcome the drawbacks of the existing system.

Earlier, the fuel rates were updated on the first and sixteenth day of every month at morning 8:00 a.m. IST (Indian Standard Time) based on the international crude oil rates and other fuel trends of the previous day. This was called “fortnight pricing system.” However, this had a lot of disadvantages. The oil marketing companies not only incurred heavy losses at times but also the government could easily influence the price.

To bring clarity or transparency to the system, the “dynamic” concept was implemented. This mechanism is something that most developed nations follow till date. According to this method, the prices are updated every morning at 6:00 a.m. IST (Indian Standard Time) based on the previous day’s CER (Currency Exchange Rate) and international crude oil price.

Does GST Have Any Influence On Diesel Rates In Patna?

At present, GST does not have any influence on the diesel prices in Patna because it is something that has not yet been implemented. It is a big process and takes a plenty of time and planning by both state and central government.

Also Check Diesel Price in NearBy Cities of Patna

Diesel Price in Kolkata Diesel Price in Raipur
Diesel Price in Guwahati Diesel Price in Ranchi
Diesel Price in Lucknow

*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.

News About Diesel Price In Patna Today

  • Diesel Price in Delhi and Mumbai Continues to Get a Price Cut

    For the 8th consecutive day, the diesel prices were slashed in four metros thereby offering relief for daily commuters. Diesel price fell marginally by 50 paise and stood at Rs.74.80 per litre in Delhi and Rs.78.41 per litre in Mumbai. On the other hand, the price of 1 litre diesel in Kolkata is Rs.76.65 and Rs.79.09 in Chennai. The national capital did not cut VAT on diesel and yet has the cheapest price rate among all the metros. The government has allowed revision of fuel rates on a daily basis since mid-June 2017 to reflect changes in costs instantly. On October 4, Finance Minister Arun Jaitley, announced a price cut of Rs.2.50 per litre for diesel.

    26 October 2018

  • Diesel Prices Hiked by 0.22 paise in Delhi

    Diesel prices touched new highs in the national capital as Oil Marketing Companies (OMCs) hiked the prices by 0.22 paise. The hike in the prices saw diesel cost Rs.73.30 every litre in Delhi. In other metro cities like Mumbai, Chennai and Kolkata the prices as on Thursday were hiked by 0.24 paisa, 0.24 paisa, and 0.22 paisa respectively. The hike in the prices saw every litre of diesel cost Rs.77.82, Rs.77.49, and Rs.75.15 in the three metro cities. The prices of diesel have been consistently going up in the last few months. The reason for this has been accounted to different reasons like high international crude oil prices, high excise duty rates, and the fall of rupee against the US dollar. It needs to be mentioned that the taxes charged in Delhi is the lowest in the country while Mumbai charges the highest sales tax or VAT in the country when it comes to fuel.

    17 September 2018

  • Truckers Declare a Country-wide Strike Against Increasing Diesel Rates and third-part Insurance Premiums

    The operators and owners of trucks have declared a country-wide strike against continually growing diesel rates and higher third-party insurance premiums. Channa Reddy, Association President at the All India Confederation of Goods and Vehicle Owners said “More than 90 lakh trucks are envisioned to not to operate on Monday. The argument of the Central Government is that diesel prices in India have gone up significantly because of transnational crude oil rates. We think that diesel prices in the country have not increased because of crude oil rates but because of heavy excise duty and Value-added Tax on the fuel.”

    The Federation of West Bengal Truck Operators demanded the government to bring diesel, petrol and petroleum products under the realm of Goods and Services Tax (GST). Even the federation has called a strike today. Sajal Ghosh, Association Joint Secretary, said “The response to the strike has been good across the state. Today, more than 3.5 lakh trucks will not operate. The Insurance Regulatory Development Authority of India has been asked to detariff the third-party insurance premiums.

    19 June 2018

  • Diesel Prices at an all-time High in the Country

    Diesel prices has reached an all-time high in the national capital with every litre costing Rs.66.36. This comes after the prices were hiked for the second consecutive day following the 19-day freeze. On Tuesday, diesel prices for every litre was increased by 22 paise. The prices are expected to be on the upward curve in the coming days as well according to an equity research firm as marketing margins of oil companies had fallen considerably due to freeze in price changes for 19 days. As per the report of the research firm, prices are expected to go up by another Rs.4.2 per litre for the oil companies to recover their margins. The increase in the prices of diesel was necessitated because during the freezing period the international fuel prices continued to surge. Apart from that, rupee’s depreciation further aggravated the matter. It needs to be mentioned that as per the price build up data for fuels, 42% of the diesel price charged from consumers is comprised of taxes.

    15 May 2018

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