Diesel Price In Rajkot
Rajkot is primarily a commercial city in Gujarat. The city is renowned for its industrial production and growing commercial activities. Due to which, the diesel usage in the city is comparatively higher than other cities in Gujarat. Moreover, newly introduced diesel-run vehicles are gaining demand, giving a rise in the consumption of fuel. The diesel price is also growing in Rajkot, but this growing price cannot be interlinked to industrial fabrication since it is globally determined. Let’s understand the pricing of diesel in Rajkot.
|Also Know: Petrol Price In Rajkot|
The Earlier Price Trend of Diesel in Rajkot
This comparative analysis of diesel rates in the city helps us understand the current trend. It is just an information-oriented analysis of historical prices. In January 2018, the average price of diesel in Rajkot stood at Rs.68.00 a litre approximately and it is anticipated to increase further. Understanding the current diesel price in Rajkot has been curious today since it is fluctuating regularly under the daily revision system.
The diesel price stood at Rs.57.19 a litre on 2 April 2017 and at Rs.58.88 a litre on 1 May 2017. On 1 June 2017, it rose to Rs.62.06 a litre and it further dropped to Rs.59.01 a litre on 1 July 2017. Oil marketing companies (OMCs) reported a price tag of Rs.61.47 a litre on the first day of August 2017. When OMCs revise the fuel price on September 2017, it stood at Rs.63.19 a litre.
The fuel reached the highest price at Rs.65.17 a litre on 1 October 2017. The next two revisions stood at Rs.61.51 a litre and Rs.61.91 a litre. Diesel prices in Rajkot were never steady. They showed an increasing trend for some period of time and a decreasing trend for some other period of time. The components of these prices include price of crude oil, taxes and OMC expenses.
Fuel Pricing Mechanism Today in Rajkot
All diesel bunks in Rajkot today will follow dynamic fuel pricing, which is a newly introduced fuel pricing system. Under the system, fuel rates are determined and updated in line with two important considerations: 1) the exchange rate and 2) Brent Crude Oil price. Any ups and downs in these two price influencers has a direct impact on the retail selling price (RSP) of diesel in Rajkot.
Other countries that follow the same fuel pricing system include Russia, Japan and the United States of America. In India, dynamic fuel pricing methodology came into effect on 16 June 2017. Prior to implementing this system, a 40-day pilot was run. It is alternatively referred to as the daily revision system. It is successful in India so far and is advantageous for diesel consumers and oil marketing companies.
Quarterly Diesel Price Trend in Rajkot between July and September 2018
|Opening date price||Rs.72.13 per litre||Rs.72.74 per litre||Rs.75.21 per litre|
|Closing date price||Rs.72.62 per litre||Rs.75.21 per litre||Rs.79.78 per litre|
|Highest price||Rs.73.28 per litre||Rs.75.21 per litre||Rs.79.78 per litre|
|Lowest price||Rs.72.13 per litre||Rs.72.74 per litre||Rs.75.21 per litre|
Diesel Price Trend in Rajkot in July
- Diesel price in Rajkot was revised each day by all the state-owned fuel selling companies in the month of July 2018.
- The prime feature of dynamic fuel pricing, which is a recently adopted fuel pricing methodology, is the regularly revision of fuel prices in line with the USD-INR rate and oil prices.
- The higher the crude oil price, the higher will be the fuel price and vice versa. When the rupee starts devaluating versus the global currency, the USD, fuel prices will go up in the Indian market.
- Fuel consumers can see an upward trend at the month’s commencement and a falling trend at the month’s end.
- Diesel rates in Rajkot were more than Rs.72.13 per litre and lower than Rs.73.28 per litre. Except for the global aspects, the domestic influencers such as taxes, OMC overheads, dealer’s commission, etc., were not changed.
- The closing date price increased by just 0.67% compared to the opening date price.
- While the lowest price of diesel was observed at Rs.72.13 per litre on 1 July 2018, the highest rate of diesel was observed on 16 July 2018 at Rs.73.28 per litre in the city of Rajkot.
Diesel Rate Trend in Rajkot in August
- The movements in the diesel prices in Rajkot were not common. They were on the rise in the first few days of the month.
- After the end of the first week, diesel price was stable despite the variations in the exchange rate and the rate of crude oil.
- In the second half of the month also, we can see diesel retailing at the same rate in Rajkot, a city in Gujarat.
- The fundamental motive behind the stability in fuel prices is the pricing policies of fuel companies such as Hindustan Petroleum, HPCL; Bharat Petroleum, BPCL; and Indian Oil, IOCL.
- Due to dynamic fuel pricing, the ups and downs in fuel prices must be the same at the diesel distribution points not only in Rajkot but also in various cities in Gujarat.
- As the fuel rate was not decreased this month, on the last day of the month, the closing date price or the highest fuel rate stood at Rs.75.21 per litre.
- In August, the Indian oil enterprises increased the rate of diesel a litre over Rs.2.50 per litre based on the external influencers.
- The elements included in the selling rate of diesel will also have an impact on fuel pricing. As far as this month is concerned, fuel pricing was not influenced by the internal forces (excise duty and sales tax).
Diesel Price Trend in Rajkot in September
- At Indian Oil, the value of a litre of diesel was Rs.75.21. On the second of the month, the price stood at Rs.75.21 per litre.
- While the fuel rate increased by over one rupee on the third of September, the fuel was purchased in Rajkot at a price of 76.46 per litre on the third and fourth of September.
- According to the daily fuel pricing system, the rate of diesel stood at Rs.77.25 per litre by the first week’s end.
- By the end of the second week, the price jumped to Rs.78.58 per litre. Likewise, in the week 3 and the week 4, the price kept surging.
- In September, diesel rate in Rajkot almost touched a price mark of Rs.80 per litre. At over 6%, the rate was increased by IOCL, BPCL and HPCL.
- The trend is just to understand the price movements and not for the purpose of analysis. It is not predictable completely as the pricing of either diesel or petrol is done considering the external and internal influencers.
- The highest rate for the quarter and the month of September was booked at Rs.79.78 per litre whereas the lowest price was recorded at Rs.72.13 per litre.
- In July, August and September, both the sales tax (Value-added Tax) and the excise duty were not revised.
- It can be said that the city of Rajkot has seen a 10.60% rise in fuel prices provoked by an appreciated dollar and the increased unrefined oil rate.
Quarterly Diesel Price Trend in Rajkot Between April and June 2018
|Opening date price||Rs.69.21 a litre (As on 2nd)||Rs.70.81 a litre (As on 14th)||Rs.74.11 a litre|
|Closing date price||Rs.70.55 a litre (As on 24th)||Rs.74.16 a litre||Rs.72.15 a litre (As on 26th)|
|Highest price||Rs.70.55 a litre recorded on 24th||Rs.74.22 a litre recorded on 29th||Rs.74.11 a litre recorded on 1st|
|Lowest price||Rs.69.21 a litre recorded on 2nd||Rs.70.81 a litre recorded on 14th and 18th||Rs.72.15 a litre recorded on 26th|
Diesel Price Trend in Rajkot in April 2018
- The diesel price in Rajkot on the 1st of the month stood at Rs.69.21 a litre - the lowest price for the month.
- Diesel and petrol prices are revised on a daily basis under the ‘Dynamic Fuel Pricing’ mechanism. State-owned fuel companies such as Hindustan Petroleum, Bharat Petroleum and Hindustan Petroleum fix fuel prices based on the international crude oil price and the exchange rate of the US dollar over rupee.
- Prices are updated daily at 6:00 am IST by oil companies. Prices could vary from state to state depending upon the local sales tax or VAT levied by the respective State.
- During the first and second weeks, diesel prices remained steady with an average price of nearly Rs.69 with slight variations due to the fluctuations in the rate of crude oil in the global market.
- The highest diesel price in Rajkot in this month stood at Rs.70.55 per litre registered on the 24th of the month.
- Diesel prices for the month grew by 1.94% in Rajkot influenced by the increase in the global crude oil price.
Diesel Price Trend in Rajkot in May 2018
- Diesel prices were kept unchanged until the 11th of the month as global crude oil prices remained steady for the first and second weeks.
- On 14th diesel prices were revised to be sold at Rs.70.81 per litre, also the lowest price of the month in Rajkot.
- The Trump administration decided to pull out of the nuclear deal with Iran which led to speculations that there might a shortage in supply of oil in the global market.
- Iran produces nearly 4% of international oil supplies or about 2.4 million barrels a day which led to the rise in oil prices.
- Crude oil prices touched $80 per barrel which influenced the revision of diesel prices in the country.
- Diesel prices in this month grew significantly in Rajkot. It rose to touch an all-time high of Rs.74.22 per litre on the 29th of the month. This was in tandem with the rise in oil prices in the global market.
- Overall, diesel prices in this month moved upwards by 4.73% mainly due to the considerable rise in oil rates in the international market.
Diesel Price Trend in Rajkot in June 2018
- On 1st June 2018, diesel was sold at Rs.74.11 a litre. Despite the high diesel price, this rate was the lowest of the month.
- With fuel prices touching all-time highs, the members of the Organisation of Petroleum Exporting Countries (OPEC) and its key ally Russia decided to meet on the 22nd to decide the future course of action to tackle the rising oil prices.
- During the first and second week of this month, diesel prices remained steady but declined marginally. By mid-June, diesel prices had fallen by nearly Rs.1.50 per litre.
- The OPEC and Russia agreed to increase the output of crude oil to increase the supply in the market and tackle the high demand for the oil.
- With the possibility of an increase in supply, diesel prices reduced significantly over the third and fourth week.
- Diesel prices in Rajkot declined to post the lowest price of the month at Rs.72.15 per litre on the 26th of the month.
- The reduction in diesel prices is due to the increase in production of oil in the global market.
- The diesel price trend in Rajkot in June 2018 reflected a downward trend of 2.65% influenced by the fall in oil prices in the global market.
Key Benefits of Dynamic Fuel Pricing
The key benefit of dynamic fuel pricing is that it encourages automation drive of OMCs. What does it mean? The revision of fuel price can be done automatically by automated diesel bunks and manually by non-automated diesel bunks. Automated diesel bunks can curb operational overheads and save time also. Dynamic fuel pricing makes sure that fuel pricing is 100% translucent. More importantly, it lets diesel consumers in Rajkot to pay the market-specific prices.
Additional benefits of Dynamic Fuel Pricing for OMCs
- OMCs can save time and money.
- OMCs can provide the best services to fuel consumers in Rajkot.
- The fuel retailing segment of India may be interlinked to global markets.
- OMCs can adopt the best working capital management and stock management principles.
How can the latest Diesel Price be checked in Rajkot?
Fuel rate is varying every day. So, consumers have to trace it regularly. It can be traced using both online and offline methods. For instance, if you are using a smartphone, you can download the mobile application designed by OMCs and trace the today’s diesel price in Rajkot easily. Since OMCs update the revised diesel prices on their websites, they can be traced online by visiting the respective websites of OMCs. If not, the current diesel price in Rajkot can be obtained through sending an SMS request.
Methodology used to assess the Diesel Price in Rajkot Today
What are the elements involved in the price, which you finally pay. The cost elements can be clubbed into three categories:
- Price of Crude Oil: The price of crude oil is the primary cost element and is tagged in transnational markets. As on 27 January, a barrel of Brent Crude Oil retailed at $70. Market experts anticipate this price to grow by 20% next year.
- Taxes: Diesel is a subsidised fuel in India. Presently, it is taxed at 28.96% by the local government of Gujarat. The local tax on diesel varies from one destination to another. In October 2017, the central government declined the excise duty by Rs.2 a litre.
- OMC Expenses: The retail selling price of diesel encompasses the expense spent by OMCs. They include entry levies, refinery transfer price, and freight and carriage. The retail selling price also includes pollution cess, commission charged by diesel bunk owners in Rajkot and the profit margin of OMCs.
Factors affecting Diesel Prices in Rajkot
Diesel prices in Rajkot are affected by the exchange rate of the INR and the USD, the cost price of crude oil and taxes. When the INR drops against the USD, the cost of crude oil increases and as a result, the retail selling price goes up. Similarly, when the USD drops against the Indian currency, the cost of crude oil falls down and a result, the buying price of crude oil increases. Similarly, any changes in the tax rates will proportionately affect the diesel rate in Rajkot.
GST vs Diesel Prices in Rajkot
The Goods and Services Tax (GST) is currently in practice. The system taxes all kinds of goods and commodities under the four tax slabs: 5%, 12%, 18% and 28%. But, diesel is not taxed under the GST system presently. However, the diesel price remains unaffected by the GST system. If the GST is imposed on diesel at the current rates, the revenue source for the government shall be negatively affected. It may be levied in the future.
Also Check Diesel Price in NearBy Cities of Rajkot
|Diesel Price in Ahmedabad||Diesel Price in Surat||Diesel Price in Hyderabad|
|Diesel Price in Indore||Diesel Price in Mumbai||Diesel Price in Jamnagar|
*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.