Diesel Price in Sangli
Since June 2017, state-owned fuel companies such as Hindustan Petroleum, Bharat Petroleum and Indian Oil have been revising diesel rates under a new system called dynamic fuel pricing. Under this system, the price of diesel is released every day on the basis of the currency conversion rate and crude oil costs. In other words, changes in the cost of crude oil and the USD/INR exchange rate are accounted for fixing the price of diesel. So, there can be a price rise or a price downfall. If there are no major changes observed, fuel rates will not be changed.
Effect of Dynamic Fuel Pricing on Fuel Companies and Consumers
Dynamic fuel pricing positively impacts fuel companies, which include Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL) and Indian Oil (IOCL). It enables them to project their losses and incomes in advance. Normally, a hedge fund is maintained by fuel companies in order to absorb the variations in the price of international unrefined oil rates. Hedge fund expenses will decrease and as a result, revenues will increases by 5-6%. Fuel consumers are not impacted much by dynamic fuel pricing, which allows the regular transmission of daily changes in overseas crude oil expenses and the exchange rate to end customers in all regions of India, including Sangli.
|Also Know: Diesel Price in Pune|
Tips for Fuel Consumers to Get Today’s Diesel Price in Sangli
Diesel is used by both retail and institutional customers. The people who use diesel for transportation purposes are considered as retail customers whereas the people who use the fuel for production activities are termed as institutional customers. The quantity of diesel consumed by institutional customers is higher compared to that of diesel used by retail users in Sangli. Since diesel rates are changing regularly, they can start using mobile applications to get the latest diesel price in Sangli. Mobile applications are offered by all the three state-owned fuel brands.
|Also Know: Petrol Price In Sangli|
BPCL offers its customers a mobile application called SmartDrive. It is a multi-purpose mobile application. If you would like to get the earlier transactions and trace the nearest fuel station in your city, start using SmartDrive instantly. Fuel buyers of HPCL are instructed to make use of My HPCL, which can be used through Android, IOS and Window devices. Similarly, IOCL customers may consider using Fuel@IOC for getting the current fuel rate in Sangli. Both Apple and Android users can use Fuel@IOC, which is extremely beneficial.
SMS service to get latest diesel rate in Sangli
- In Sangli, BPCL customers seeking the latest fuel rate may send an SMS request to 9223112222. They have to type RSP, provide a space and again type the dealer code and send this message to 9223112222.
- Likewise, Indian Oil consumers may forward an SMS request to 9224992249 to get the price fixed at IOCL fuel dealers in the city. The format remains the same.
- Customers of HPCL are required to type HPPRICE, leave a space and then type Dealer Code. They should send this message to 9222201122.
Fuel customers may also visit the official website. The official website of IOCL is www.iocl.com and that of HPCL is www.hindustanpetroleum.com. Similarly, the official website of BPCL is www.bharatpetroleum.com. Once you visit any of these websites, you have to find a tab called ‘Pump Locator’ to get the current fuel price in Sangli.
Computation of Diesel Price in Sangli
The following chart illustrates various cost aspects of retail selling price of diesel in the city of Sangli as on 03 June 2018.
- Cost of crude oil per barrel = $78.3 or Rs.5,245
- One barrel of crude oil = 159 litres
- Crude oil price per litre = Rs.32.98 (A)
- Entry taxes, landing overheads and refinery transfer price = Rs.5.23 a litre
- Profit margin of OMCs, freight expenses and transportation costs = Rs.2.87 a litre
- OMC expenses in total = 8.10 a litre (B)
- Excise duty on diesel per litre = 15.33 a litre (C)
- Commission paid to diesel suppliers = Rs.2.53 a litre (D)
- Value-added Tax on diesel per litre is charged by 21.97% = 12.98 (E)
Fuel rate in Sangli per litre = A+B+C+D+E = Rs.71.88
Forces Impacting Diesel Price in Sangli
Value-added Tax (VAT) and excise duty are indigenous factors affecting the pricing of the fuel. Within the state of Maharashtra, on diesel, VAT is charged differently. In Mumbai, Navi Mumbai and Thane, VAT on diesel per litre was 24.86% whereas in rest of the state, it was 21.97% in June 2018. There is a difference in taxes due to which, diesel price in Mumbai is lower compared to diesel rate in Sangli. Both forms of taxes can be revised based on circumstances. The lower the VAT, the lower the fuel rate shall be and vice versa. The higher the excise duty, the higher the fuel rate shall be and vice versa.
The pricing of diesel in domestic marketplaces is also impacted by international factors, which include crude oil costs, production cuts, mismatches in demand and supply of diesel, the INR/USD conversion rate, etc. Crude oil costs will change in sync with the supply and demand pattern for unrefined oil in global markets. It will in turn affect diesel rates in Indian cities, including the city of Sangli. Oil exporting nations may announce fabrication cuts or production cuts because of bad weather.
Caused by a production cut, the demand for unrefined oil will increase and in the end, selling prices of diesel will increase. Though the impact of the exchange rate (USD/INR) is minimal, this international factor cannot be ignored. When the USD appreciates against the currency of India, crude oil rates will fall and vice versa. The conversion rate of this highly flexible currency pair relies on so many factors. In India, the currency pair is valued by the Reserve Bank of India, which is also called the Central Bank of India.
Diesel Price in Sangli vs Goods and Services Tax (GST)
What is GST? GST is a multi-stage indirect tax charged on products and services in India. It is currently charged at 5%, 12%, 18% and 28%. So far, the highest GST rate fixed by the GST Council is 28% while the lowest GST rate is 5%. Goods and services, which are sold within the country, have been segregated for taxation purposes. Interestingly, GST is not charged on diesel, petrol and by-products of petroleum. Therefore, diesel price in Sangli remains unaffected by the present tax system, which is GST. The imposition of GST on widely used fuels like diesel and petrol will lessen the income source of the central and state governments. Therefore, the government either has to revise the present GST tax rates or impose addition levies to bring both diesel and petrol under GST.
Petrol and Diesel Price in Sangli
As on 15 June 2018, diesel price in Sangli was Rs.71.15 a litre while petrol price was Rs.84.16 a litre. There exists a price variation of Rs.13 per litre. Diesel is priced lower compared to petrol because of taxation policies in India.
Also Check Diesel Price in NearBy Cities of Sangli
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|Diesel Price In Kolhapur||Diesel Price In Amravati||Diesel Price In Aurangabad||Diesel Price In Surat|
*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.