Diesel Price In Trichy Today

Diesel Prices in Trichy

The current diesel price in Trichy, also called Tiruchirappalli, includes the state and central levies, the costs spent by oil marketing companies (OMCs) and the margin of dealers. Trichy is the fourth biggest urban agglomeration in Tamil Nadu. It is one of the prime cities in the state too. If you are one among those seeking to understand the trends in diesel prices in Tiruchirappalli and a few important aspects related to diesel, the most widely used fuel, you are the right page. Let’s begin the discussion.

Trends in Diesel Price in Trichy

As expected, the current diesel price in Trichy has been moving in a growing trend. The fuel price is changing every day since the arrival of dynamic fuel pricing, a system where fuel prices are revised on a daily basis in sync with the exchange rate of INR against the USD and international crude oil rates. Unlike the previous fortnightly-based revision, diesel customers someone like you cannot anticipate the fuel price to be steady.

The cost of fuel in Madurai was more compared to Trichy and Chennai. It can be attributed to the commission charged by dealers. A fuel station closer to supply centers is likely to charge less commission. As on 4 October 2017, diesel and petrol were taxed at 25% and 34% respectively. The local tax is subject to change. The central excise duty imposed on diesel was Rs.15.33 per litre as on the same date. These two types of taxes account for more than 50% of the actual fuel price paid by customers in Trichy.

How are Diesel Prices in Trichy Updated?

Before 16 June 2017, oil marketing companies used to review fuel rates twice a month, which is on the first and sixteenth of every month. Since the arrival of the daily revision or dynamic fuel pricing system, all oil marketing companies, including Bharat Petroleum (BP), Hindustan Petroleum (HP), Indian Oil and Shell Oil, have been updating the current diesel price in Trichy on a daily basis. The pricing revision like the previous system is done on the basis of worldwide crude oil rates and the value of INR against the USD.

Why Dynamic Fuel Pricing?

Like the United States of America (USA), Australia and Russia, India has deployed the dynamic fuel pricing mechanism in order to address the drawbacks of the previous fuel pricing mechanism. Dynamic fuel pricing mechanism allows oil marketing companies (OMCs) to instantly transmit the changes in the INR/USD exchange rate and the cost price of crude oil. These two determinants are highly volatile in nature. It assures 100% transparency as far as fuel pricing is concerned. The new mechanism enables dealers to manage inventory effectively.

Quarterly Diesel Price Trend in Trichy between July and September 2018

Diesel Price Trend in Trichy in July 2018

• Based on the dynamic fuel pricing mechanism, diesel prices in Trichy are revised on a daily basis by State-run Oil Marketing Firms.
• Oil companies fix the selling price of diesel in Trichy and across other cities by following the global crude oil price and the exchange rate of the rupee and the U.S. dollar.
• On the 1st of July, the diesel price in Trichy stood at Rs.71.66 per litre, which was also recorded as the lowest diesel price in Trichy for the month.
• Diesel and petrol price moved upwards during the first and second weeks in tandem with a slight increase in crude oil prices in the global market.
• On the 16th, the highest diesel price in Trichy was registered when a litre of diesel was sold at Rs.73.24.
• After inclining to the highest price, rates declined in the course of the third and fourth week but not lower than the opening price of July.
• By the end of the month, the diesel price declined to touch Rs.72.15 per litre on the 30th of the July, a slight increase by 49 paise per litre.
• The diesel price trend in Trichy in July rose by 0.68% marginally due to the slight increase in oil prices in the international market.

Diesel Price Trend in Trichy in August 2018

• Oil companies hiked the diesel price in Trichy on the 1st of August by 28 paise when a litre was available at Rs.72.43 in the city - the lowest diesel price recorded during the course of the month.
• Prices of diesel continued to rise in the first and second weeks as crude oil prices inclined sharply in the international market.
• The rise in oil prices was due to geopolitical tensions between the U.S. and Iran after the former pulled out of the nuclear deal between the two nations.
• Also, the U.S. administration was looking to impose sanctions on Iran to limit the supply of oil from Iran.
• This led to a decline in the supply of oil which prompted crude oil prices to increase in the market.
• Prices continued to soar in the country as it touched the highest diesel price on the 31st when the fuel was dispensed at Rs.74.73 a litre.
• Overall, diesel prices in Trichy during the month rose sharply by 3.17% owing to the rise in crude oil price in the international market.

Diesel Price Trend in Trichy in September 2018

• On the 1st of September, the diesel price in Tirchy stood at Rs.74.73 per litre - the lowest price registered during the month.
• Prices continued to increase in the first and second weeks in Trichy as crude oil prices soared to a four-year high in the global market.
• Due to the geopolitical tensions, there was a shortage in the supply of crude oil in the market leading to the rise in fuel prices across the globe.
• While the crude oil price rose to touch $80 per barrel, the Indian currency witnessed a record drop in its exchange rate as it breached the Rs.72 mark.
• Both of these factors led to the rise in oil price which prompted oil companies to hike petrol and diesel prices accordingly.
• Several state governments such as the Karnataka, Rajasthan, West Bengal and Andhra Pradesh governments, announced a cut in the local sales tax or VAT which offered some respite to consumers.
• By the end of the month, the diesel price in Trichy rose to touch the highest when a litre was sold at Rs.79.27 on the 28th which was kept unchanged until the end of the month.
• Overall, the diesel price trend in Trichy in September grew significantly by 6.07%, which is attributed to the steep incline in the crude oil price and the record depreciation of the Indian currency.

Quarterly Diesel Price Trend in Trichy between April and June 2018

Diesel Price Trend in Tiruchirappalli in April 2018

• Diesel price varies from one state to another due to sales tax, but the system used to revise the price of diesel per litre remains the same throughout the country.
• Currently, the state-run fuel enterprises revise the fuel rate per litre under the system of dynamic fuel pricing, which considers the changes in the exchange rate and the rate of unrefined oil per barrel.
• Diesel price in Tiruchirappalli, which is also called Trichy, in April 2018 moved upwards and downwards in sync with the crude oil rate per barrel. They were also steady for some days of the month.
• As on 02 April 2018, the price of a litre of diesel in the city of Trichy was Rs.68.75. The fuel price was revised to Rs.70.09 per litre on 24 April 2018. It means that the fuel rate in the city increased by Rs.1.34 per litre within a span of 22 days.
• Fuel companies in India are required to reset the diesel per litre if there are any variations in domestic forces such as excise duty, value-added tax, the commission for dealers, OMC expenses, etc.
• Since domestic forces were not revised this month, the changes in the crude oil costs caused the upward trend in diesel prices in Tiruchirappalli.

Diesel Price Trend in Tiruchirappalli in May 2018

• The Karnataka State Government declared its assembly election in the month of May 2018. Therefore, both diesel and petrol rates in Trichy remained steady between 01 May 2018 and 11 May 2018.
• After the assembly in Karnataka, fuel marketing companies started increasing the fuel rates across the country. After three days of the election, diesel price per litre in the city further increased to Rs.70.32.
• Under dynamic fuel pricing, the price of diesel per litre was revised to Rs.70.55 on 15 May 2018, Rs.70.78 on 16 May 2018, Rs.71.01 on 17 May 2018 and Rs.72.11 on 21 May 2018.
• In the same way, Indian Oil, Bharat Petroleum and Hindustan Petroleum increased the fuel rate during the last week as well. The closing date price for the month was noted at Rs.73.65. It was booked on 31 May 2018.
• The opening date price for the month was also the lowest fuel price. As the cost of crude oil per barrel increased by $6, diesel rates in Tiruchirappalli were up reasonably. Other cities in Tamil Nadu also produced the similar result.

Diesel Price Trend in Tiruchirappalli in June 2018

• Like the first two months, the revision of fuel prices in the city was done on the basis of the exchange rate and crude oil rates in June 2018 also.
• Since the beginning of June 2018, the crude oil market was sluggish because of certain reasons. When the crude oil market is sluggish, the price of crude oil will fall in international markets.
• Throughout the month of June 2018, crude oil prices were low. Triggered by the sluggish crude oil market, diesel rates in Trichy kept decreasing until the completion of June 2018.
• For the month, the opening date price stood at Rs.73.60 in the city. It dropped to Rs.73.35 on 04 June 2018, Rs.73.25 on 05 April 2018, Rs.73.17 on 06 June 2018 and Rs.73.09 on 07 June 2018.
• By the end of the third week of the month, diesel price in Tiruchirappalli was Rs.71.97 per litre at Indian Oil Corporation Limited.
• The opening date price was the highest fuel price for the month whereas the closing date price was the lowest fuel price for the month.
• In Trichy, the upward trends observed in April 2018 and May 2018 and the downward trend observed in the month of June 2018 were caused only by the changes in the INR/USD exchange ate and the crude oil market.

How to Track Daily Updates?

Be advised to examine the current diesel price in Trichy while buying. You cannot envision the price to be constant like before. Examining the current price is easy with mobile applications designed by all oil marketing brands. Smartphone users can download these applications. Oil brands also offer SMS services and customer support services. Alternatively, consumers can visit the websites of oil marketing companies, which will update the fuel price on a daily basis.

Who are the Stakeholders in the Indian Fuel Retailing Sector?

The stakeholders in the Indian fuel retailing sector include oil marketing companies, which import crude oil from abroad oil marketing companies; dealers, who are the retail entrepreneurs to supply fuels; and refineries. OMCs play a vital role in the sector.

How are Diesel Prices in Trichy Computed?

Do you know the components of the Retail Selling Price? Refer the following table:

What Factors do Affect Diesel Rates in Trichy?

The fluctuations in crude oil prices, the local tax, the central excise duty, dealer commission and the INR/USD exchange rate will influence diesel prices in Tiruchirappalli. For instance, fuel prices were down in October 2017 after cutting the excise duty. Tamil Nadu has not lowered the local tax like Maharashtra and Gujarat. On a contractual basis, crude oil is imported. Therefore, the value of the INR against the USD makes a big difference. The cost of crude oil will fall if the USD falls against the INR and vice versa. Eventually, the retail selling price is affected.

What is the Impact of GST on Diesel Costs in Trichy?

What is GST? As we all know, the Goods and Services Tax (GST) is a unified tax system used currently in India to impose the tax on all kinds of goods and services. Every consumer pays GST on the purchase of goods and services. It is worth noticing that both petrol and diesel have not been covered under the new tax system. Therefore, diesel rates remain unchanged. The highest tax rate set by the GST Council till date is 28%. Even if the government taxes the fuel at this highest rate, the fuel price will reduce by a big margin. Consumers will be benefited, but the government stands to lose the major chunk of income.