Diesel Price in Rajasthan
Diesel price in Rajasthan, the desert state located in the western side of India, has seen an upward trend until the recent excise duty cut on diesel.
With significant hydrocarbon resources, Rajasthan is one of the major contributors to India’s domestic oil production. The economy of the state is mainly dependent on agriculture and industries. Compared to the other Indian states, diesel consumption in Rajasthan is predominantly by industries and private transportation vehicles rather than private vehicles.
Let us see if the presence of oil reserves in the state impact the prices of diesel in its major cities such as Jaipur and Jodhpur.
Diesel Price in Rajasthan Compared to its Neighbouring States
Compared to its neighbouring states such as Madhya Pradesh, Gujarat, Uttar Pradesh, Punjab, and Haryana, diesel price in Rajasthan is the third highest with the highest diesel price observed in Madhya Pradesh.
Variation in diesel price among the states is mainly due to the difference in the tax rates levied by each of the state governments on diesel.
Factors Affecting Diesel Rate in Rajasthan
As pointed out earlier, tax levied by the Rajasthan state government is the major factor that impacts diesel price in the state.
The Rajasthan government, just like other state governments in India, levies value added tax on diesel. Any revision of tax would impact the diesel price in all the cities in the state.
Besides the state level taxes, other factors that commonly impact diesel price in Rajasthan and in all other Indian states are the international crude oil prices, US dollar to Indian rupee exchange rate, central government taxes, freight and transportation charges, profit margins and other operating costs.
Of all the factors, the most dynamic components that would fluctuate on daily basis are the global crude oil prices and the currency exchange rate.
As most of the Indian fuel requirement is met through oil import from other countries, any volatility in the international crude oil price would directly impact the retail selling price of diesel in India. With the new dynamic fuel pricing in place, any change in the crude oil price will have an immediate effect on the diesel price.
As oil trading typically happens in US dollars, the currency exchange rate becomes the next deciding factor of diesel price in India. The stronger the dollar, the higher the fuel price in India and vice versa.
Central excise duty, the tax levied by central government on diesel, together with state-level taxes, constitute more than 50% of the retail selling price of diesel. Even when the global oil prices hit an all-time low a year ago, diesel prices in India were still the same due to the continuous increase in excise duty on diesel. Therefore, any upward or downward revision of the tax rates on diesel will directly impact its price across the states.
State Taxes and Diesel Price in Rajasthan
The Rajasthan government currently levies a value added tax of 25.75% on a litre of diesel. The state-level tax is what makes diesel price different in different states.
Compared to its neighbouring states, Rajasthan charges the second highest tax rate after Madhya Pradesh following the recent rate cut by Gujarat government. Of the six states, Haryana and Punjab charge the lowest VAT on diesel at 17.34% and 17.22% respectively.
Quarterly Diesel Price Trend in Rajasthan between July and September 2018
|Opening date price||Rs.71.50 per litre||Rs.72.46 per litre (As of 2 August)||Rs.74.85 per litre|
|Closing date price||Rs.72.33 per litre||Rs.74.85 per litre||Rs.76.81 per litre|
|Highest price||Rs.72.97 per litre||Rs.74.85 per litre||Rs.76.81 per litre|
|Lowest price||Rs.71.50 per litre||Rs.72.46 per litre||Rs.74.85 per litre|
Diesel Price Trend in Rajasthan in July 2018
- Diesel prices in Jaipur and other towns in Rajasthan were changed according to the newly deployed fuel pricing system called dynamic fuel pricing from the beginning to end of the month.
- Dynamic fuel pricing considers today’s exchange rate of the rupee against the USD and the rate of unrefined oil per barrel in order to revise the price of diesel tomorrow across the country.
- A fall in the INR versus the US dollar and a rise in the price of petroleum will lead to a rise in diesel prices and vice versa.
- In July, the oil selling enterprises such as Indian Oil, Hindustan Petroleum and Bharat Petroleum reappraised the rate of the fuel using the same equation.
- As of 1 July, diesel rate in the capital city of Rajasthan, Jaipur, was Rs.71.50 per litre. The price was Rs.71.94 per litre on the 5th, Rs.72.53 per litre on the 9th, Rs.72.77 per litre on the 12th and Rs.72.97 per litre on the 16th.
- Looking at these rates, we observe an upward trend as far as diesel prices in the city of Jaipur are concerned.
- The sales and central taxes are an integral part of the price of diesel per litre paid by an individual. The variations in the taxes ought to be accounted for.
- The month closed at a growth rate over 1% caused by the slightly depreciated domestic currency but not due to the taxes.
Diesel Price Trend in Rajasthan in August 2018
- Needless to mention, the publicly listed oil companies continued to update diesel rates in tandem with the transactional influencers.
- On the commodity market, crude oil rates were seen moving downwards and upwards throughout August.
- Likewise, the USD/INR currency pair was seen flexible on the forex market, the FX market. There was no big lapse in fuel prices in Rajasthan this month caused by the global determinants.
- From 1 August to 31 August, diesel was traded over Rs.72 per litre and lesser than the Rs.75 mark across the state.
- The lowest and highest diesel rates were booked on the 1st August and the 31st August respectively.
- In August, it is important to notice that the growth rate in diesel prices in Jaipur was higher than the growth rate in petrol rates.
- We may witness such variations often because of the pricing strategies of the oil corporations, including Indian Oil, abbreviated as IOCL; Hindustan Petroleum, abbreviated as HPCL; and Bharat Petroleum, abbreviated as BPCL.
- Over a period of 60 days (July and August), diesel rate in Jaipur increased to Rs.74.85 per litre from Rs.71.50 per litre.
Diesel Price Trend in Rajasthan in September 2018
- The Government of Rajasthan has reacted to the nationwide strike initiated by the Congress people by cutting the sales tax (VAT) on diesel by 4%.
- Owing to this reason, diesel rates in all localities of the state were declined at all the fuel stations (HPCL stations, BPCL stations and IOCL stations).
- It can be stated that the oil marketing entities remained the same diesel price for a majority of the days of the month. For a few days, the companies increased the fuel price.
- On 1 September, the revised price was declared at Rs.74.85 per litre.
- The price stood at Rs.76.83 per litre on the 7th, Rs.75.68 per litre on the 14th, Rs.76.26 per litre on the 21st and Rs.76.81 per litre on the 28th.
- From Rs.74.85 per litre to Rs.76.81 per litre, the fuel price was soared by all the three OMCs in Jaipur, which is the capital city of Rajasthan.
- The growth rate for the entire quarter was estimated to be over 7%.
- At Rs.15.33, the excise duty was collected by the Centre this quarter. The excise duty was not cut by the government despite an appeal made by the opposition party.
Quarterly Diesel Price Trend in Rajasthan between April and June 2018
|Opening date price||Rs.68.87 a litre||Rs.70.25 a litre||Rs.73.71 a litre|
|Closing date price||Rs.70.25 a litre||Rs.73.76 a litre||Rs.71.77 a litre|
|Highest price||Rs.70.28 a litre registered on the 24th||Rs.73.76 a litre registered on the 31st||Rs.73.71 a litre registered on the 1st|
|Lowest price||Rs.68.87 a litre registered on the 1st||Rs.70.25 a litre recorded on the 3rd||Rs.71.77 a litre recorded on the 27th|
Diesel Price Trend in Rajasthan in April 2018
- The revision of fuel prices will happen under the system of dynamic fuel pricing currently. The exchange rate, the USD/INR, and crude oil rates are considered to release the fuel price on a daily basis.
- When revised on the 1st, the price of a litre of diesel in the capital city of Rajasthan, Jaipur, was Rs.68.87 a litre. The price continually increased over the first week.
- The fuel retailed at an average price of Rs.69.53 a litre during the third week. The average fuel rate stood at Rs.70.12 a litre for the last week.
- On the 25th, diesel price was revised to Rs.70.25 a litre in all major cities of Rajasthan such as Jaipur, Udaipur, Jodhpur, Kota, etc. The same price was offered on the 26th, the 27th, the 28th, the 29th and the 30th.
- As the crude oil price per barrel soared to $69.30 in April 2018, diesel rates in Rajasthan were up 2% to Rs.70.25 a litre on the 30th.
Diesel Price Trend in Rajasthan in May 2018
- In Jaipur, Kota, Jodhpur and Udaipur, diesel was retailed at a price of Rs.70.25 a litre during the first elven days of the month. It was triggered by the unchanged unrefined oil market.
- Taxes also affect the revision of fuel rates across India. In April 2018 and May 2018, both forms of taxes were not revised in Rajasthan.
- In response to the growing demand for unrefined oil, oil exporting nations began accelerating the price of crude oil per barrel.
- As a result, the fuel rate per litre was accelerated to Rs.69.32 a litre on the 14th, Rs.69.76 a litre on the 21st and Rs.70.15 a litre on the 28th.
- State-run fuel companies such as Bharat Petroleum, Hindustan Petroleum and Indian Oil increased the retail selling price of diesel per litre by 4.99% in May 2018 considering the variations in crude oil rates in international markets.
- For the month, the highest diesel rate was Rs.73.76 a litre, while the lowest fuel price stood at Rs.68.87 a litre.
Diesel Price Trend in Rajasthan June 2018
- Diesel was sold at a price of Rs.73.71 a litre on the 1st. The fuel price was steady at Rs.73.58 a litre on the 2nd and the 3rd.
- A barrel of unrefined oil was priced at $75.02% on the 1st. In overseas markets, the price was further dropped to $74.89.
- The crude oil price per barrel continued to downfall until the end of June 2018. Therefore, diesel price in Rajasthan was down by 2.63%.
- Any changes in fuel rates between April 2018 and June 2018 were not caused by the domestic influencers such as central taxes, sales taxes, the commission charged by fuel retailers, pollution cess, etc.
- The exchange rate of the INR against the greenback was reported to be weaker by 5.12% during the second quarter of the current year. But, the revision of diesel rates in Rajasthan was not affected by the USD/INR exchange rate.
- For the entire quarter, the highest and lowest diesel rates were Rs.73.71 a litre and Rs.68.87 a litre.
- Since the Central Government is reluctant to reduce central taxes on petrol and diesel, diesel rates in Rajasthan are comprehended to break their record highs.
Trend in Diesel Price in Rajasthan between January and March 2018
|Opening date price||Rs.63.97 a litre||Rs.68.61 a litre||Rs.66.74 a litre||Rs.63.80 a litre||Rs.68.43 a litre||Rs.66.50 a litre|
|Closing date price||Rs.68.52 a litre||Rs.66.57 a litre||Rs.68.68 a litre||Rs.68.43 a litre||Rs.66.50 a litre||Rs.68.59 a litre|
|Highest price||Rs.68.52 a litre||Rs.68.73 a litre||Rs.68.68 a litre||Rs.68.43 a litre||Rs.68.66 a litre||Rs.68.59 a litre|
|Lowest price||Rs.63.97 a litre||Rs.66.57 a litre||Rs.66.74 a litre||Rs.63.80 a litre||Rs.66.48 a litre||Rs.66.50 a litre|
|% Change||+7.11%||-2.97%||+2.90%||+7.25%||- 2.82%||+3.14%|
Trend in Diesel Price in Rajasthan in January 2018
- The fuel price was revised to Rs.63.97 a litre and Rs.63.80 a litre respectively in Jaipur and Jodhpur, the prime cities in Rajasthan, based on the performance of the crude oil market.
- Due to the fluctuations in the transportation cost, a minute variation can be observed between the diesel rates in Jodhpur and Jaipur.
- It was proposed to retain the same level of excise duty this month by the Central Government. The VAT was also retained unaffected at 24.28% by the State Government of Rajasthan.
- Therefore, an upsurge in the diesel price in Rajasthan is a result of the accelerated cost of crude oil and an appreciated rupee.
- Internationally, there has been a rise in WTI and Brent Crude Oil prices since the commodity accrued demand from India, Japan etc.
- OPEC countries have succeeded to supply the expected quantum of crude oil to importing countries. No production activities were interpreted by poor weather conditions.
- So, it is only the changes in the crude oil costs and the INR/USD conversion rate have caused a 7.11% up in the diesel price in Jaipur and a 7.25% up in the diesel rate in Jodhpur.
- On 31st, the lowest and highest prices were declared at Rs.63.97 per litre and Rs.68.52 per litre in the city of Jaipur. The highest and lowest prices for the month stood at Rs.68.43 per litre and Rs.63.80 a litre in Jodhpur in January.
Trend in Diesel Price in Rajasthan in February 2018
- Finance Minister, Arun Jaitley, proposed the Union Budget 2018-2019 making some changes in the excise duty on 1st.
- Even after the declaration of the budget, no impact was observed on the diesel prices throughout the state. The fuel market released a price offer of Rs.63.80 a litre in Jaipur and Rs.68.43 a litre in Jodhpur as per the daily price revision system.
- We can spot a growing trend until the first week. Afterwards, in tandem with the variations in the exchange rate and crude oil costs, Hindustan Petroleum, Bharat Petroleum and Indian Oil have begun descending the diesel rate.
- As a result, the fuel was devalued to Rs.68.57 a litre on 10th, Rs.67.79 a litre on 15th, Rs.66.71 on 20th, Rs.66.58 a litre on 24th and Rs.66.57 a litre on 28th in Jaipur.
- Likewise, on 10th, 14th, 19th and 23rd, in Jaipur, the price of diesel was depreciated to Rs.68.48 a litre, Rs.67.91 a litre, Rs.66.80 a litre and Rs.66.56 a litre respectively.
- Due to a falling trend, the highest price was noted within the first week and the lowest price was recognised in the last week in Jaipur.
- Finally, the fuel companies reported a 2.97% drop and a 2.82% drop in the diesel prices in Jaipur and Jodhpur correspondingly.
Trend in Diesel Price in Rajasthan in March 2018
- The commodity began accruing its demand from evolving countries at the starting of the month. In response to the growing demand, the price range started moving upwards.
- Consequently, the first 7 days have produced a growth rate of 1.1% and the second week also reported an increasing rate of 0.16% in Jaipur. Almost the same trend was observed in Jodhpur as well.
- Between January 2018 and March 2018, the overall growth rates were 7.36% and 7.50% in Jaipur and Jodhpur respectively.
- In Jaipur, the highest and the lowest prices were recorded at Rs.68.73 a litre in the month of March and Rs.63.97 per litre in the month of January respectively.
- Similarly in Jodhpur, because of the unstable crude oil market, the lowest rate for the entire quarter was noted in January and the highest fuel rate was locked in March.
- Ultimately, it can be interpreted that the revision of the diesel price in Rajasthan was not influenced by the indigenous forces such as the VAT and the excise duty.
- Refinery activities were reported to be steady this quarter globally. The extraction and supply of crude oil to exporting economies were not affected by a bad weather according to reliable sources.
How often Diesel Rates are Revised in Rajasthan
Diesel prices in all the cities of Rajasthan are being revised on a daily basis ever since the Dynamic Fuel Pricing has been introduced in India.
Dynamic fuel pricing mandates daily revision of fuel prices in all the petrol pumps across the cities. Accordingly all the petrol pumps in the state will update the revised diesel price everyday by 6 a.m.
The new pricing system will deliver even the minute change in the international crude oil price to the end customer immediately. It will also bring transparency in fuel pricing and prevents sudden price shocks, which were a matter a past when fuel prices were updated once in every 15 days.
Customers can find the daily revised diesel price on the respective websites of oil companies such as Hindustan Petroleum, Bharat Petroleum and Indian Oil. The companies have also launched mobile apps to provide up to date fuel price to the customers.
Petrol pump specific rates can be fetched by sending an SMS with the dealer’s code, which is displayed at the respective petrol pumps.
Effect of GST on Rajasthan Diesel Price
Rajasthan, similar to other Indian states, have adopted the new tax regime, which is nothing but the goods and services tax (GST). The implementation of GST affected the prices of many goods and services both positively and negatively.
However, the effect of GST on diesel is zero, as diesel and other petroleum products have been exempted from GST and are being taxed as per the old taxation. As per the old tax regime, both state and central governments levy taxes on diesel separately. While states collect VAT, centre collects excise duty.
Bringing diesel and petrol under GST is currently one of the demands across India. However, the price of diesel will only come down when the new tax rate under GST is lesser than the current taxes being levied on the fuel. Considering the highest tax bracket of 28% under GST, diesel price in Rajasthan may come down as the current VAT on diesel alone is 25.75%.
Diesel Cost versus Petrol Costs in Rajasthan
Diesel price in Rajasthan is lesser than that of petrol price again due to the tax component involved. The VAT and excise duty collected on diesel is different from that of petrol, hence the price variation.
Currently the excise duty of diesel is Rs. 15.33/Lt, whereas on petrol it is Rs. 19.48/Lt. Similarly, VAT charged by Rajasthan government on diesel is 25.75% per litre, whereas on petrol it is 32.95%.
|Also Check: Diesel Price in Jaipur|
Also Check Diesel Price in NearBy Cities of Rajasthan
|Diesel Price In Jodhpur||Diesel Price In Kota|
|Diesel Price In Udaipur||Diesel Price in Jaipur|
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