Diesel Price in Ratlam
Be sure to track the latest diesel rate in Ratlam if you are buying fuel in a bigger quantity. Diesel prices will no longer be steady like before. They have been changing every day since June 2017. At Indian Oil Corporation Limited, on 24 May 2018, diesel was valued at Rs.72.08 per litre in Ratlam, a notable place in Madhya Pradesh. The price is inclusive of both categories of taxes and crude oil costs. All state-owned fuel enterprises will follow the same pricing strategies. So, variations in prices are unnoticeable. Apart from state-run fuel companies, privately-managed fuel brands such as Shell Oil and Reliance Oil hold the market share of 10-12%.
System Used to Revise Diesel Rate in Ratlam
Diesel is a commodity, which has to be priced considering certain elements. Usually, ups and downs in the exchange rate and unrefined oil rates are being pondered to update diesel price. Earlier, on 1st and 16th of every month, fuel rates used to be revised. Now, the scenario is completely different. Fuel companies have been advised to follow dynamic fuel pricing to redefine fuel rates. In lieu of having only two revisions in a month, the revision will take place regularly. Dynamic fuel pricing is not an Indian-based concept. It has also been deployed in other countries.
|Also Know: Diesel Price in Madhya Pradesh|
Why Dynamic Fuel Pricing?
As per Oil Marketing Companies (OMCs), the concept of dynamic fuel pricing shall make sure that the advantage of the minute fluctuation in crude oil rates are being transferred to the final fuel consumer like you. It also eradicates big variations in fuel prices, which must be affected at the completion of every fortnight. Fuel consumers in Ratlam are interlinked to real-time market conditions. Dynamic fuel pricing is preferred over the earlier system because of many reasons. Under no circumstances, the distribution of diesel in the city of Ratlam is impacted. The system empowers fuel companies to efficiently monitor their stock levels and manage cash flows.
Tips to get Current Diesel Price in Ratlam
Commonly, many fuel customers will visit the nearest supply point to get the latest price. Is it not? You may now ponder using fully tailor-made mobile applications to get the price of diesel offered at IOCL, BPCL and HPCL. Each fuel company has a mobile application of its own. HPCL advises its customers from the city of Ratlam to download a mobile application called ‘My HPCL.’ Similarly, customers of BPCL have been instructed to download and use its mobile application called ‘SmartDrive.’ The name of the mobile application to be used by customers of India Oil is ‘Fuel@IOC.’ You can get regular updates using any of these mobile applications.
Offline Methods to Trace Today’s Diesel Rate in Ratlam
|Hindustan Petroleum||Bharat Petroleum||India Oil|
|SMS option||An SMS request should be sent in the following format by fuel customers of Hindustan Petroleum: RSP DEALER CODE to 9222201122||Fuel consumers of Bharat Petroleum should forward an SMS service request in the following style: RSP DEALER CODE to 9223112222||Customers of Indian Oil are required to forward an SMS service request in the following structure: RSP DEALER CODE to 9224992249|
|Customer care service||Dial the customer care service number of HPCL.||Dial the customer care service number of BPCL.||Dial the customer care service number of IOCL.|
Breakup of Diesel Price in Ratlam (As on 20 May 2018)
|Crude oil price per barrel||$72.5|
|A barrel of crude oil is equal to||159 litres|
|Cost of unrefined oil per litre||Rs.31|
|RTP, entry levies, landing costs, operational expenses||Rs.5.91 per litre|
|Profit ratio of OMCs, freight overheads and transportation costs||Rs.2.87 per litre|
|Fuel cost (After refining)||Rs.39.78 per litre|
|Excise duty||Rs.15.33 per litre|
|Price charged to dealers||Rs.55.11 per litre|
|Value-added Tax in Ratlam (a city in Madhya Pradesh at 22.23%)|
|Retail selling price of diesel in Ratlam = (Price charged to dealers plus VAT)|
Forces Affecting Diesel Price in Ratlam
- Crude oil: Variation in crude oil rates is the largest element in the volatility of the rate of diesel. Other factors can be relatively stagnant. Crude oil rates are largely determined by demand and supply. Moreover, the extraction of crude oil from the Organisation of Petroleum Exporting Countries (OPEC) impacts the pricing of crude oil.
- Refining expenses and profit margins: The type of crude oil used in the process determines the amount of refinery overheads. OMCs usually spend refinery expenses on converting raw unrefined oil into usable commodities such as petrol and diesel.
- Taxes: On diesel, excise duty is charged by the Government of India and VAT is levied locally. Since diesel price in Ratlam has increased significantly, fuel customers can expect a cut either in excise duty or in VAT. If the Central Government announces a cut in central taxes, fuel rates in Ratlam will drop and vice versa. Likewise, the revision of VAT also has the same impact.
- Rupee-Dollar exchange rate: The fixation of fuel rates is connected with the USD/INR exchange rate. This currency pair is transacted on the FX market and is highly flexible in nature. If the USD devalues today, fuel rate goes up and vice versa.
Does GST Impact Diesel Price in Ratlam?
Goods and Services Tax (GST) is defined as an indirect tax. It subsumes several forms of indirect taxes in our country. The act was passed in the year 2017. Alternatively, GST is a multi-phase tax, which has been levied on each value addition. Commodities and services are taxed at four tax slabs: 28%, 18%, 12% and 5%. Interestingly, GST has not been levied on diesel in India. Therefore, the GST tax framework cannot influence diesel prices not only in the city Ratlam but also in other cities. Diesel is an extremely important fuel, which cannot be taxed at 28% by the GST Committee. Indeed, GST can be imposed on diesel either by revising the existing tax rates or by imposing additional taxes. The concerned authorities have to take a final call.
*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.