Diesel Prices in Pune
Pune is the second largest city in Maharashtra. Being the seventh most populous city in the nation, the demand for diesel in the city is high amid retail and institutional customers. The cost of diesel in Pune is increasing due to the increased demand for the fuel. Let’s take a look at the trends in diesel prices in Pune for the current year (2017).
Between 1 October and 20 October, the average rate of diesel per litre in Pune was Rs.58.53. On the opening day of January, the diesel rate was Rs.62.56 that further fell down to Rs.60.26 on the opening day of April. On the first day of May, the rate again increased to Rs.62.08. The diesel prices in Pune on the opening day of June, July, August and September were Rs.60.66, Rs.57.67, Rs.58.07 and Rs.59.68 respectively. Prices throughout the year were not constant.
Diesel Price in Pune and Other Cities
Between 12 October and 21 October, the average diesel price in Mumbai was Rs.59.50. During the same period, it was Rs.57.21 in Bangalore. In Chennai, the average price was Rs.59.96. Among four cities, the cost of diesel per litre was more in Chennai followed by Mumbai, Pune and Bangalore.
How are Diesel Prices in Pune Revised?
Diesel rates in Pune are revised based on dynamic fuel pricing model that was implemented in India on 16 June 2017. According to the new fuel pricing model, fuel rates (petrol and diesel rates) are revised on a daily basis in sync with global crude oil prices and the currency conversion rate. State-owned fuel retailers, which include Indian Oil, Bharat Petroleum, Hindustan Petroleum and Shell Oil, are currently following dynamic fuel pricing or the daily revision.
Benefits of Dynamic Fuel Pricing
|Also Know: Petrol Price In Pune|
- Diesel consumes can be aligned to market dynamics.
- Pump rates will replicate daily fluctuations in worldwide Crude Oil prices and the exchange rate (INR/USD).
- Bib leaps in diesel rates can be removed.
- Oil companies are free from political influences.
- Dynamic Fuel Pricing does not adversely affect end consumers.
- Daily changes can be easily tracked online.
- Diesel bunk owners can deploy the best stock management techniques.
- Dynamic Fuel Pricing ensures transparency in fuel pricing.
All three state-run oil marketing entities provide an SMS service to help diesel consumers from Pune to trace the revised price. Consumers can also download the mobile applications created by oil marketing companies to get the latest update. Another option is to visit the website of any of these oil marketing entities. Revised diesel rates will also be displayed at diesel bunks.
Diesel Price Trend in Pune between July and September 2018
|Opening date price||Rs.70.32 per litre||Rs.70.89 per litre||Rs.73.28 per litre|
|Closing date price||Rs.70.78 per litre||Rs.73.27 per litre||Rs.78.03 per litre|
|Highest price||Rs.71.41 per litre||Rs.73.27 per litre||Rs.78.03 per litre|
|Lowest price||Rs.70.32 per litre||Rs.70.89 per litre||Rs.73.28 per litre|
Diesel Price Trend in Pune in July 2018
- The quarterly diesel price trend in Pune, which is the second largest city in Maharashtra, has been recognised on the basis of the daily variations in the price of diesel.
- The revision of diesel rates in the city of Pune has been taken place under dynamic fuel pricing for all the 31 days of the month.
- At Indian Oil fuel supply centers in Pune, as of 1 July 2018, the price of a litre of diesel was Rs.70.32. The fuel was sold at the same price until the 4th July 2018.
- Both crude oil rates and the exchange rate were highly volatile in nature. In this month, the dollar was reported to be up marginally over the currency of India.
- The crude oil rate per barrel (monthly average) has dropped marginally as per the official sources of Petroleum Planning and Analysis Cell.
- At a growth rate of 0.65%, the cost of diesel per litre has increased from Rs.70.32 to Rs.70.78 this month. In the capital city of Maharashtra also, the growth rate in both petrol and diesel rates was just below 1%.
- The month has produced an upward trend not because of the changes in the domestic influencers such as the sales tax and the excise duty but because of the devalued rupee.
Diesel Rate Trend in Pune in August 2018
- Oil companies may not reduce the prices of diesel and petrol in sync with the falling crude oil rates. They have to consider the variations in the exchange rate as well.
- In this month, the oil selling companies neither increased nor decreased the rate of diesel per litre between 7 August 2018 and 10 August 2018.
- Between 11 August 2018 and 15 August 2018, the fuel was marketed at a rate of Rs.71.48 a litre as the oil companies have not transferred the benefits to fuel users.
- In the third and fourth weeks also, diesel rates were not changed by Hindustan Petroleum, Indian Oil and Bharat Petroleum.
- Diesel rates in the city of Pune jumped by a big margin on the 29th, 30th and 31st of August 2018. As a result, they increased at a rate of 3.38%.
- There was no noticeable change in the monthly average rate of crude oil, but the indigenous currency devalued against the dollar drastically.
- The closing date price turned out to be the highest fuel rate for August 2018 in Pune. On the other hand, the opening date price turned out to be the lowest fuel price for the month.
Diesel Price Trend in Pune in September 2018
- The cost of unrefined oil was on the rise in the first week of September and, therefore, fuel rates in Pune were increased by Rs.1.39 per litre.
- They remained steady at Rs.76 per litre on the 11th, 12th and 13th of September 2018 and Rs.76.26 a litre on the 14th and 15th of September.
- In this month, the cost of unrefined oil per barrel started to climb. On the other hand, the domestic currency continued decreasing over the dollar.
- Thus, the growth rate has increased from 3.38% to 6.48% this month. The same trend was observed across Maharashtra.
- On 30 September, the highest fuel price was booked at Rs.78.03 per litre between July and September 2018.
- The lowest fuel rate for the month was Rs.73.28 per litre. For the whole quarter, it was Rs.70.32 per litre.
- The Bharat Bandh was observed in the second week. Fuel pricing in Pune was not affected by the nationwide strike.
Quarterly Diesel Price Trend in Pune Between April and June 2018
|Opening date price||Rs.67.71 a litre (As on 2nd)||Rs.69.23 a litre (As on 14th)||Rs.72.40 a litre|
|Closing date price||Rs.69.01 a litre (As on 24th)||Rs.72.45 a litre||Rs.70.29 a litre (As on 26th)|
|Highest price||Rs.69.01 a litre recorded on 24th||Rs.72.51 a litre recorded on 29th||Rs.72.40 a litre recorded on 1st|
|Lowest price||Rs.67.71 a litre recorded on 2nd||Rs.69.23 a litre recorded on 14th||Rs.70.29 a litre recorded on 26th|
Diesel Price Trend in Pune in April 2018
- Diesel was available in Pune on the 2nd at Rs.67.71 per litre, this was also the lowest price of the month.
- Fuel prices in India are revised under the ‘Dynamic Fuel Pricing’ mechanism. Prices are updated daily by State-run oil companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum.
- Oil companies consider the international crude oil price and the currency exchange rate of the US dollar over rupee to fix the diesel price.
- Diesel prices in Pune during the first and second week remained steady with a marginal increase influenced by the change in crude oil rate.
- By the third week, crude oil prices increased slightly and fuel companies revised the diesel price in Pune in tandem with the rise in oil prices.
- On the 24th, the highest diesel price of the month was recorded at Rs.69.01 a litre impacted by the rise in oil prices in the international market.
- Overall, diesel prices in Pune during April 2018 grew by 1.92% largely due to the slight increase in the global crude oil price.
Diesel Price Trend in Pune in May 2018
- Oil companies didn’t revise fuel prices across the country as the global crude oil rate remained steady.
- Diesel prices were revised from the 12th onwards in tandem with the revision in crude oil rates. On 14th diesel was sold at Rs.69.23 a litre in Pune.
- By the 20th, diesel prices in Pune rose significantly with an increase of more than Rs.1.75 even as crude oil rates continued to move upwards.
- The US administration’s decision to unilaterally pull out of the nuclear deal with Iran caused markets to price in the factor that Iran might reduce the supply of crude oil.
- In the backdrop of a possible shortage in oil supply, the crude oil price rose to $80 per barrel which led to the increase in diesel prices in the country.
- Diesel rose to post the highest price on the 29th with the fuel being retailed at Rs.72.51 per litre - an all-time high.
- Diesel prices in Pune in the month grew significantly by 4.65% influenced by the increase in oil prices in the global market.
Diesel Price Trend in Pune in June 2018
- On 1st of the month, the diesel price in Pune was sold at Rs.72.40 per litre - the highest of the month indicating that fuel prices declined over the course of the month.
- With crude oil prices on the rise, the members of the Organisation of Petroleum Exporting Countries and its allies such as Russia decided to meet on the 22nd to discuss the future course of action to reduce the impact of high crude oil rates.
- By the end of the second week, diesel prices in Pune were down by Rs.1.40 per litre due to the marginal decline in oil prices.
- On 22nd, the OPEC and Russia decided to increase the production of oil to increase the supply of oil in the international market.
- Oil prices continued to decline in the third and fourth week which led to the reduction in diesel prices in the country.
- The lowest diesel price in Pune in the month was recorded at Rs.70.29 a litre which was available on the 26th of the month.
- The diesel price trend in Pune during the month reflected a downward trend of 2.92% largely influenced by the considerable decline in oil prices in the international market.
Calculation of Diesel Prices in Pune
We calculate the retail selling price of diesel based on a few cost elements, which are:
Cost of Crude Oil:
In the price structure of diesel, the cost of crude oil is the first cost element. The price that is paid by oil marketing entities to purchase unrefined oil from transactional oil marketing entities. Freight charges are also included in the cost of crude oil.
Refinery Transfer Price (RTP):
The imported crude oil will be transmitted to refineries to convert crude oil into diesel. Refinery transfer price is the price, which is charged by refineries for converting crude oil into diesel. It is remitted by oil marketing companies.
OMCs profit margin:
Oil marketing companies add their profit margin on the sum of the cost of crude oil and refinery transfer price. Therefore, the price that is quoted to dealers includes the cost of crude oil, refinery transfer price and the profit margin of oil marketing companies.
Central and State Taxes:
The tax that is levied on diesel by the central government is called the central excise duty. Diesel is also taxed by state government. In Maharashtra, diesel is taxed at 28.41% as on 4 October 2017.
Dealers charge a certain percentage of commission for supplying diesel to end consumers. The percentage of the commission may not be the same across the country.
All the aforementioned cost elements are added to arrive at the final selling price of diesel in Pune.
Factors affecting Diesel Prices in Pune
Before 3 October 2017, the cost price of a litre of diesel in Pune was Rs.61.76 per litre. Why did it reduce to Rs.59.43 on 4 October 2017? It is due to the reduction in the central excise duty on diesel by the central government. The government of Maharashtra also reduced the state VAT on diesel by 4% on 10 October 2017. The price of diesel after the announcement further fell down to Rs.58.55 in Pune. This is how the central excise duty and the state VAT affect the final price of diesel.
The exchange rate of the Indian currency against the US dollar is another factor impacting the final price of diesel. Since crude oil is traded in US dollars, the value of the INR makes a big difference to the cost of crude oil. If the USD falls against the INR, the cost of crude oil will reduce. If the USD gains against the INR, then the cost of crude oil will increase. The exchange rate is determined by the Reserve Bank of India, which is also called the central bank of India.
The biggest influencer of the final price of diesel is the cost of crude oil, which is incurred by oil marketing companies in order to buy crude oil from overseas oil companies. Crude oil is transacted in worldwide markets. If the cost price of unrefined oil goes up, the cost of diesel will increase. On the other hand, if the cost price of crude oil reduces, then the rate of diesel will decrease. The determinants of the cost price of crude oil include seasonal variations, the currency conversion rate, weather conditions, political movements in oil-producing countries and the demand for the fuel.
What is the Impact of GST on Diesel Prices in Pune?
The Goods and Services Tax is a newly introduced indirect tax platform. It is imposed on all kinds of goods and services that are sold within the country. Five petroleum products have not been brought under the GST purview. Thus, GST has no impact on diesel rates in Pune. What will happen if diesel is covered under the GST framework? The compliance cost will be doubled. The current diesel rate in Pune will diminish at least by 30%. The revenue source for the state and central government is unfavorably impacted.
|Also Check: Diesel Price in Maharashtra|
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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.