Diesel Price in Raipur
Raipur is the largest and the centrally located city in the Indian state of Chhattisgarh. Diesel plays an important role in the city as it is an important commercial and industrial base for various industries including coal, power, steel, aluminium and plywood.
Diesel price in Raipur, just like in other Indian cities, is dependent on various factors including both domestic and international. While the international factors are the prime reasons for the daily fluctuating diesel rate in Raipur, domestic factors are mostly constant and affect diesel price once in a while.
Let’s look at the various factors that affect diesel price in Raipur in detail along with other important elements one needs to know about diesel pricing in India.
|Also Know: Diesel Price in Jharkhand|
Factors Affecting Aiesel Rate in Raipur
The two factors that impact diesel price in Raipur on a day to day basis are the global crude oil prices and the currency exchange rate.
- Crude Oil Prices: Due to dynamic fuel pricing model, diesel prices in India are aligned with the international crude prices. Global crude oil prices change every day based on various factors including demand and supply and political stability in the oil-producing countries, climatic conditions, and similar other factors. In order to make Indian oil prices align to the international market prices, diesel prices in India are revised on a daily basis. Any slight change in the global crude price, thus, impacts the retail selling price of diesel in India.
- Currency Exchange Rate: Another element that affects diesel price on a day to day basis is the currency exchange rate. As oil trading typically happens in US dollars, the stronger the dollar the higher the price of oil in international market. Since the exchange rate also changes on a daily basis, diesel price will be revised accordingly. Hence, any major change in the rupee value would affect diesel prices in India.
Besides the above two mentioned factors, there are a few domestic factors that affect diesel price in Raipur as explained below
- State Government Taxes on Diesel in Raipur: Chhattisgarh, similar to other Indian states, levies value added tax (VAT) on every litre of diesel sold in the state and hence in Raipur, as well. Currently, Chhattisgarh government charges 25.81% VAT on diesel, which is the third highest tax rate in the country. Though the tax rate does not affect diesel price on a daily basis, any revision would directly impact the price of diesel across all the cities and towns in the state.
- Central Government Taxes: The central government collects excise duty on every litre of diesel sold in the country. Similar to state tax, excise duty on diesel does not affect its price on a daily basis. Currently, after the recent cut in the excise duty by Rs.2/Ltr, the centre levies excise duty of Rs.15.33 per litre of diesel.
- OMCs Profit Margins: The downstream oil market in India, which includes refining, processing and purifying of crude oil purchased from other countries, is controlled by state-owned oil marketing companies (OMCs) namely, Indian Oil Corporation (IOCL), Hindustan Petroleum (HP) and Bharat Petroleum (BP). The companies conduct the refining and distribution activities hence would charge marketing and distribution costs and profit margins to the cost price of diesel before selling it to the petrol pump dealers.
- Dealers Commission: Petrol pump dealers purchase diesel from the OMCs. They then add their commission, which factors in employee minimum wage, to every litre of diesel sold at their station. The dealers commission is typically decided by the OMCs, who would revise the same once every year.
Breakdown of Diesel Price in Raipur, Chhattisgarh
Using the factors listed above, let’s see how the diesel rate in Raipur on 19th April 2018 was calculated.
|1||International crude oil price along with ocean freight charges||$83.22 per barrel = Rs.34.08/Litre (considering $1=65.11 and 1 barrel oil = 159 litres)|
|2||Oil company’s margin, transportation, refining and freight cost||Rs.3.73/Ltr|
|5||Value added tax (VAT)||Rs.14.83/Ltr|
|Total||Retail selling price of diesel at Raipur||Rs.70.49/Ltr|
Frequently asked questions (FAQs) on Diesel Price in Raipur
- Why does diesel price in Raipur change every day?
Diesel price in Raipur changes every day because of the dynamic fuel pricing model implemented in India in 2017. The new pricing mechanism revises the diesel price in Raipur every day to make it align with international crude oil price and the currency exchange rate. The updated price will be updated at all the petrol pumps in Raipur at 6 a.m. every day.
- Why are diesel prices in Raipur higher compared to diesel prices in other cities?
An important factor that comprises diesel price in Raipur is the value-added tax (VAT) charged by Chhattisgarh government. As the VAT charged by the state is higher compared to other states, diesel price in Raipur is slightly higher compared to other cities and states.
- Where would I get the cheapest diesel in Raipur?
Diesel price across the city of Raipur remains the same except for a few minute differences. The state-owned fuel stations including Indian Oil, Hindustan Petroleum, and Bharat Petroleum offer best diesel price in Raipur compared to private counterparts like Shell and Essar. Among the public sector players, Indian Oil offers the cheapest diesel price in Raipur, whereas BPCL offers the highest.
- What is the effect of GST on Raipur diesel price?
Goods and services tax (GST) was introduced in India in July 2017 to bring uniformity in tax rates across the country. After the roll-out of GST, the rates of many goods and services got affected due to the revised tax rates.
The price of diesel, however, remained unaffected as the fuel products are exempted from GST regime. Diesel and other petroleum products are still being taxed as per the old tax regime, which includes both state and central government taxes.
Hence, the effect of GST on diesel rate in Raipur and in other Indian states and cities is currently zero. If diesel is brought under GST, its price may get affected based on the new tax rate. A lesser tax rate from the current tax rate would decrease diesel price in Raipur, while a higher tax rate would push it upward.
Also Check Diesel Price in NearBy Cities of Raipur
|Diesel Price in Ranchi||Diesel Price in Bhopal|
|Diesel Price in Bhubaneswar||Diesel Price in Indore|
|Diesel Price in Nagpur|
*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.