Diesel Price in Telangana
Diesel is a widely used fuel. The price of diesel is linked with global factors such as crude oil prices and the exchange rate. All Indian states have different tax structures. For instance, diesel is taxed less in New Delhi compared to Telangana, which is the youngest state in the southern India with 31 districts. The local tax imposed on diesel in Telangana was 27% and the central excise duty on the fuel was 15.33 per litre as on 04 October 2017.
Let’s make a comparative study of diesel prices in Telangana by considering the three prime cities, which include Hyderabad, the capital city, Warangal and Karimnagar. In Hyderabad, during the first two weeks of November 2017, the fuel rate moved in an increasing trend. On the opening day of October 2017, the fuel price was Rs.64.02 per litre, which diminished to Rs.61.79 per litre on the closing day of the month. The highest and lowest rates in the month were Rs.64.25 per litre and Rs.61.79 respectively. Refer the following table:
Historical Diesel Prices in Hyderabad 2017(Price per litre)
|Opening day price||Rs.62.06||Rs.60.38||Rs.58.08||Rs.58.72|
|Closing day price||Rs.63.95||Rs.61.98||Rs.60.45||Rs.58.17|
The highest rate over the last five months was Rs.64.02 per litre whereas the lowest price was Rs.58.08 in Hyderabad. In June, as we can see from the table, prices are low due to dynamic fuel pricing. In July, prices have gained. In September, fuel prices were up by 2.96% in Hyderabad and by 2.58% in August. Yes, diesel rates will marginally vary among Hyderabad, Warangal and Karimnagar.
How are Diesel Costs Revised in Telangana?
Like other commodities, the diesel price is also revised. Global crude oil rates and the exchange rate are taken into consideration to revise the price. Currently, all oil marketing companies (OMCs) in India have been using the dynamic fuel pricing system, which was introduced in June 2017. What is dynamic fuel pricing? It is a fuel pricing mechanism to revise Fuel Rates (Petrol Rates and Diesel Rates) on a daily basis in sync with crude oil rates and the exchange rate.
Be advised to check the current diesel price in Telangana since it is varying every day since 16 June 2017. All state-run oil marketing companies – Bharat Petroleum, Hindustan Petroleum and Indian Oil – have been using dynamic fuel pricing that aligns consumers to market dynamics. It means consumers will pay the price, which is determined based on the fluctuations in the determinants. The system assures 100% transparency as far as fuel pricing is concerned.
Quarterly Diesel Price Trend in Telangana between July and September 2018
|Opening date price||Rs.73.24 a litre||Rs.73.76 a litre||Rs.76.42 a litre|
|Closing date price||Rs.73.80 a litre||Rs.76.42 a litre||Rs.81.04 a litre|
|Highest price||Rs.74.58 a litre recorded on the 14th||Rs.76.42 a litre recorded on the 31st||Rs.81.04 a litre recorded on 28th, 29th and the 30th|
|Lowest Price||Rs.73.24 a litre recorded on the 1st||Rs.73.76 a litre recorded on the 1st||Rs.76.42 a litre recorded on the 1st and 2nd|
Diesel Price Trend in Telangana in July 2018
- Similar to petrol prices, diesel prices are revised on a daily basis by State-owned oil companies based on the dynamic fuel pricing method.
- Under this method, oil companies fix the selling price of diesel by taking into account the global crude oil price and the exchange rate of the rupee over the U.S. dollar.
- On the 1st of July, the diesel price in Hyderabad, the capital city of Telangana, stood at Rs.73.24 per litre. This is the lowest diesel price in Telangana recorded during the course of the month.
- Oil companies hiked diesel prices over the course of the first and second weeks to touch the highest diesel price in the state on the 14th when a litre of diesel was dispensed at Rs.74.58 a litre.
- Diesel prices declined in the next couple of weeks but it didn’t breach the opening price of the month.
- The closing diesel price in Telangana for the month of July stood at Rs.73.80 per litre, an incline of 56 paise as against the opening price.
- The diesel price trend in Telangana in July grew by 0.75% owing to the marginal increase in crude oil prices in the international market.
Diesel Price Trend in Telangana in August 2018
- Diesel prices were reduced on the 1st of August by 4 paise as a litre of the fuel was sold at Rs.73.76 in Telangana - the lowest price recorded during the month.
- During the first and second weeks, diesel prices continued to rise due to geopolitical tensions between the U.S. and Iran.
- The U.S. administration pulled out of the nuclear deal with Iran which led to a decline in the supply of crude oil in the market.
- This prompted the global crude oil price per barrel to increase leading to the rise in petrol and diesel prices in the country.
- There was no let up in the rise in crude oil prices as diesel prices in Telangana and other states were relentlessly increased during the course of the month.
- By the end of the month, diesel rose to touch the highest price on the 31st when a litre of diesel was sold at Rs.76.42.
- The diesel price trend in Telangana in August inclined by 3.61% primarily due to the rising geopolitical tensions between the U.S. and Iran.
Diesel Price Trend in Telangana in September 2018
- The diesel price in Telangana on the 1st of September stood at Rs.76.42 per litre, which was kept unchanged the next day as well. This was also the lowest price registered during the course of the month.
- Diesel rates continued to soar during the first and second weeks even as crude oil prices increased in the international market.
- Certain states such as Rajasthan, Karnataka, Andhra Pradesh and West Bengal announced a cut in local sales tax or VAT offering some relief to consumers of those states.
- The global crude oil price inclined to touch a four-year high of $80 per barrel and the rupee fell to its record low of Rs.72 over the U.S. dollar.
- Both these factors influenced the significant rise in petrol and diesel prices across the country as it touched record levels over the course of the fourth week.
- The highest diesel prices in Telangana during the month of September was Rs.81.04 per litre registered on the 28th and was kept unchanged until the end of the month.
- Overall, diesel prices in Telangana during the month of September grew sharply by 6.05% mainly due to the steep incline in crude oil prices and the record drop in the exchange rate of the Indian currency over the U.S. currency.
Quarterly Diesel Price Trend in Telangana Between April and June 2018
|Opening date price||Rs.70.16 a litre||Rs.71.63 a litre||Rs.75.26 a litre|
|Closing date price||Rs.71.63 a litre||Rs.75.31 a litre||Rs.73.24 a litre|
|Highest price||Rs.71.67 a litre registered on 24th||Rs.75.38 a litre registered on 29th||Rs.75.26 a litre registered on 1st|
|Lowest price||Rs.70.16 a litre registered on 1st||Rs.71.63 a litre registered from 1st to 11th||Rs.73.24 a litre registered from 27th to 30th|
Diesel Price Trend in Telangana in April 2018
- On 1 April 2018, the diesel price in Hyderabad, the capital city of Telangana, stood at Rs.70.16 a litre – the lowest price for the month.
- State-run oil companies fix diesel prices on a daily basis under the ‘Dynamic Fuel Pricing’ mechanism. Prices are fixed based on the international crude oil price and the currency exchange rate.
- Diesel prices inclined marginally over the first and second week as oil prices reflected an upward trend.
- By mid-April, prices of diesel in Telangana rose by 27 paise a litre influenced by the rise in crude oil rate.
- The highest diesel prices registered in the month stood at Rs.71.63 per litre on the 24th.
- Overall, diesel prices in the first month of the quarter grew marginally by 2.10%, largely impacted by the rise in oil prices.
Diesel Price Trend in Telangana in May 2018
- On the opening day of May, diesel was sold at Rs.71.63 a litre in Hyderabad unchanged from the preceding day.
- Oil companies kept the prices unchanged until the 11th of the month as oil prices were stable in the international market.
- From the 12th onwards, fuel companies revised diesel prices in accordance with the international oil prices.
- Crude oil prices were on a significant rise in the backdrop of a possible shortage in supply as the US administration decided to pull out of the nuclear deal with Iran.
- On fears of a possible shortage in supply, diesel prices rose to touch an all-time high of Rs.71.63 per litre on the 29th of the month.
- Diesel prices grew considerably during the month with an upward trend of 5.14%, impacted by the rise in oil prices in the global market.
Diesel Price Trend in Telangana in June 2018
- On 1st of the month, diesel prices were reduced by 5 paise a litre as oil prices were steady with not many gains in the market.
- With oil prices on the rise, the members of the Organisation of Petroleum Exporting Countries (OPEC) and its key ally Russia decided to meet on 22 June to agree upon a plan to tackle the high oil price.
- Diesel prices during the first and second week continued to slide and by mid-month prices came down by Rs.1.51 a litre.
- The OPEC and Russia agreed to increase production of oil to tackle the significant rise in oil rates across the globe.
- Oil prices receded on the backdrop of a possible increase in output by the OPEC and Russia.
- Prices continued to decline significantly posting the lowest for the month on the 27th with diesel being sold at Rs.73.24 a litre in Hyderabad.
- During the last month of the quarter, diesel prices in Telangana declined considerably by 2.68%, largely due to the increase in output and decline in geopolitical tensions.
Trend in Diesel Price in Telangana between January 2018 and March 2018
|Opening date price||Rs.64.92 a litre||Rs.69.63 a litre||Rs.67.68 a litre|
|Closing date price||Rs.69.53 a litre||Rs.67.50 a litre||Rs.69.97 a litre|
|Highest rate||Rs.69.53 a litre registered on 31st||Rs.69.75 a litre registered on 6th and 7th||Rs.69.97 a litre registered on 31st|
|Lowest rate||Rs.64.92 a litre recorded on 1st||Rs.67.49 a litre registered on 25th||Rs.67.68 a litre registered on 1st|
Trend in Diesel Price in Telangana in January 2018
- You can notice a price difference of 12 paise a litre between the diesel rates offered in Hyderabad, the capital city of Telangana; and Warangal, the second biggest city in Telangana.
- To make it clear, the city of Hyderabad offered a price range of Rs.64.92 a litre on 1st January whereas the city of Warangal offered a price range of Rs.64.80 a litre on the same date.
- The disparities in the price offers may be ascribed to voyage expenses, which tend to change within the cities of the same state.
- Apart from voyage expenses, other cost components like crude oil costs, taxes, pollution cess, the profit ratio and expenses of Oil Marketing Companies will have a direct impact on fuel prices.
- In January 2018, no cost elements were projected to revise except crude oil costs, which are affected by climate conditions, the current and expected demand for crude oil, etc.
- Crude oil sustained a reasonable amount of demand this month and thus, the commodity accumulated the price.
- By the end of the month, a 7.13% rise in the diesel rate across the state was declared by Indian Oil Corporations Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited.
Trend in Diesel Price in Telangana in February 2018
- The price offer was released at Rs.69.63 a litre in Hyderabad on 1st February. It stood at Rs.69.48 a litre in Warangal. No major price difference was observed even though Arun Jaitley, Finance Minister, unveiled the budget for the financial year 2018-2019.
- A price fall in diesel prices was anticipated by fuel consumers. Fuel prices were not impacted since the finance minister made no changes in the tax slab for diesel.
- In fact, you can see the diesel rate moving upwards during the first 6-7 days. After that, it moved downwards because of the fluctuations in the exchange rate.
- In February 2018, you can observe a 3.05% downfall primarily due to crude oil costs, which fell by a big margin in the month.
- The demand pattern plays a vital role in fixing the price for unrefined oil. There was a steep fall in the demand for the commodity.
- Thus, unlike the previous month, diesel rates in all towns of Telangana were down this month. Other states such as Maharashtra, Karnataka, Uttar Pradesh and Madhya Pradesh have also produced the same result.
Trend in Diesel Price in Telangana in March 2018
- Whenever the Central Government reduces the excise duty, OMCs will also reduce the fuel price. If the government increases the central tax, OMCs will increase the diesel rate accordingly.
- The excise duty in the quarter was retained unaltered at Rs.15.33 on diesel per litre. Similarly, the State Government of Telangana levied the Value-added Tax (VAT) at 25.93%.
- It can be inferred that the domestic factors have no impact on a 7.77% rise in the diesel rate between January 2018 and March 2018. It was caused by the accelerated crude oil rates and a devalued USD.
- In March, the highest fuel rate was booked at Rs.69.97 a litre. It was also the highest rate for the entire three months.
- The lowest diesel rate stood at Rs.64.92 a litre for the month of January, Rs.67.49 a litre for the month of February, and Rs.67.68 a litre for the month of March.
Note: Crude oil is of two categories: a) WTI and Brent. The average price of these categories shall be taken into account to set and reset diesel rates.
How do I Check the Current Diesel Price in Telangana?
Consumers in Telangana have three options to check the latest price. The first option is to download the mobile applications designed all oil marketing brands. The mobile application designed by Bharat Petroleum is called SmartDrive, the application created by Hindustan Petroleum is called My HPCL and the application designed by Indian Oil is called Fuet@IOC. Consumers can also make use of SMS and customer care services offered by OMCs.
State Levies on Diesel – A Comparison (As on 04 October 2017)
|Telangana||Maharashtra||Tamil Nadu||Uttar Pradesh|
|VAT on diesel||27%||28.41%||25%||20.19%|
|VAT on petrol||35.20%||47.64%||34%||32.45%|
How are Diesel Rates in Telangana Computed?
The following table illustrates the Price Structure of Diesel in Telangana:
|Crude Oil Prices including freight||XXXX|
|Crude Oil Cost per litre||XXXX|
|Refinery Transfer Price and processing overheads||XXXX|
|Transportation costs, OMC margin, freight||XXXX|
|Fuel Price after Refining||XXXX|
|The Central Tax on Diesel (Excise Duty)||15.33 per litre as on 4 October 2017|
|Price charged to dealers before Value-added Tax||XXXX|
|Dealer retail cost calculation||XXXX|
|Commission charged by dealers||XXXX|
|VAT 27% and 25p pollution cess||XXXX|
|Retail Selling Price of Diesel per litre||XXXX|
Components of Diesel Costs in Telangana
The following are the components of Diesel Rates in Telangana:
- The cost of crude oil is paid by OMCs.
- Refinery Transfer Price (RTP) is charged by refineries.
- Diesel is taxed by the state and central governments.
- OMCs add their profit margin to the total overheads incurred by them.
- Dealers charge commission for supplying the fuel to end customers.
Influencers of Diesel Price in Telangana
More than 50% of the retail selling price goes towards the central and state taxes. In October 2017, the excise duty on diesel was decreased to Rs.15.33 per litre from 17.33 per litre. In the same month, the local tax was reduced by Maharashtra, Gujarat, Madhya Pradesh and Uttarkhand. So, the revision of taxes affect the fuel price. The exchange rate of INR/USD is another influencer. This currency pair is highly fickle in nature. The value of the INR against the USD impacts the crude oil prices that in turn affect diesel prices in Telangana. The crude oil price is the biggest influencer.
The Reserve Bank of India fixes the exchange rate of the INR/USD currency pair. The most common influencers of the exchange rate consist of interest rate parity, interest rates, balance of payment, inflation rate, import and export ratio and the overall debt. When the INR gains against the USD, then the cost of crude oil will be cheaper. When the INR falls against the USD, then the cost of crude oil will increase. The influencers of crude oil prices include global political movements, the demand for oil, reserves, and weather conditions in oil producing countries.
Does GST Impact Diesel Price in Telangana?
GST does not affect diesel prices in Telangana as diesel does not fall under the purview of GST, which has been imposed on various types of commodities and goods. Currently, the GST rates have fixed at 5%, 12%, 18% and 28%. The compliance cost for industry stakeholders will be doubled if GST is imposed on diesel.
|Also Check: Diesel Price in Hyderabad|
Also Check Diesel Price in NearBy Cities of Telangana
|Diesel Price In Tamil Nadu||Diesel Price In Warangal|
|Diesel Price In Varanasi||Diesel Price In Aligarh|
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