Diesel Price in Uttarakhand
Diesel is used heavily for commercial purposes. It has a huge role to play in developing the economy of a nation like India. Unlike other states in the country, Uttarakhand is developing in terms of commercial elements. The diesel consumption has been growing at a decent rate in the state. Does the demand and supply pattern affect the diesel price in Uttarakhand? Yes. But, it partially influences. India is a huge importer of unrefined oil. So, the diesel rate in Uttarakhand is largely affected by global aspects such as the exchange rate, crude oil prices etc.
Analysis of Diesel Price in Uttarakhand
During the first fifteen days of March 2018, diesel retailed with an average price of Rs.63.30 a litre in Dehradun, the capital city. In January 2018 and February 2018, diesel prices were Rs.60.79 a litre and Rs.64.56 a litre respectively in the city. In Rishikesh, the diesel price was above Rs.63.50 a litre in March 2018. In January, February and March 2018, the prices were Rs.60.79 a litre, Rs.64.56 a litre and Rs.62.97 a litre respectively. In Haridwar, the diesel price was Rs.57.01 a litre, which is low compared to Dehradun and Rishikesh.
Dynamic Fuel Pricing vs Current Diesel Rates in Uttarakhand
Dynamic fuel pricing is a major event in the fuel retailing segment in India. It was deployed by oil enterprises like Indian Oil, Hindustan Petroleum and Bharat Petroleum last year after executing a 40-day pilot in four towns. It has been deployed in the country to bring transparency in the pricing and revision of fuel rates. Instead of revising fuel rates twice a month, under the dynamic fuel pricing concept, the revision of diesel prices in Uttarakhand will be done each day at 06:00 a.m.
The daily price revision approach is beneficial to industry participants, including users, oil companies, dealers and the government. If the cost of crude oil dampens today, it will be reflected in the RSP quickly. Fuel consumers do not have to wait for fifteen days to experience changes. Oil companies are benefited from dynamic fuel pricing in several ways. They will be able to monitor their inventories or stock effectively and reduce the capital required to run the business.
Obtain Today’s Diesel Price in Uttarakhand
Diesel users in Uttarakhand will be able to obtain the current diesel price in all cities of the state through mobile applications. Indian Oil Corporations Limited has launched Fuel@IOC. This mobile application can be accessed through all devices. Hindustan Petroleum Corporation Limited has launched My HPCL. The name of the mobile application designed by Bharat Petroleum Corporation Limited is SmartDrive. All these mobile applications offer excellent features to end customers. Fuel consumers can also make use of SMS services.
|Indian Oil||Bharat Petroleum||Hindustan Petroleum|
|Type RSP and send dealer code to 9224992249||Type RSP and send dealer code 9223112222||Type RSP and send dealer code to 9222201122|
Assessment of Diesel Cost in Uttarakhand
- Step 1: We compute the cost of crude oil by multiplying the cost of crude oil per barrel by the USD/INR exchange rate. The cost of a litre of crude oil will be Rs.26.42 a litre as of 3 February 2018.
- Step 2: The expenses spent by OMCs are computed. It will be Rs.8.30 a litre according to recent reports. Oil companies incur various types of expenses, including entry levies, import duties, freight charges etc.
- Step 3: The excise duty is levied at the basic cost of crude. It will be Rs.15.33 a litre as of 3 February 2018 in Uttarakhand. The entire country is equally taxed.
- Step 4: A dealer commission of Rs.2.51 will be levied on diesel per litre. After the dealer’s commission, the cost of fuel works to be Rs.52.12 a litre.
- Step 5: In Uttarakhand, Value-added Tax (VAT) is levied at 19.93%. Therefore, 19.93% of Rs.52.12 works to be Rs.10.38.
RSP of diesel price per litre in Uttarakhand = Crude oil costs + OMC expenses + central taxes + dealer’s commission + VAT
Quarterly Diesel Price Trend in Uttarakhand between July and September 2018
|Opening date price||Rs.67.70 a litre||Rs.68.22 a litre||Rs.70.69 a litre|
|Closing date price||Rs.68.25 a litre||Rs.70.69 a litre||Rs.74.97 a litre|
|Highest price||Rs.68.95 a litre recorded on the 18th||Rs.70.69 a litre recorded on the 31st||Rs.74.97 a litre recorded on 28th, 29th and the 30th|
|Lowest Price||Rs.67.70 a litre recorded on the 1st||Rs.68.22 a litre recorded on the 1st||Rs.70.69 a litre recorded on the 1st and 2nd|
Diesel Price Trend in Uttarakhand in July 2018
- In Uttarakhand and other states in India, petrol and diesel prices are revised every day under the dynamic fuel pricing mechanism.
- State-owned Oil Marketing Companies (OMCs) arrive at the final selling price of diesel by taking into account the global crude oil price and the rupee-dollar exchange rate.
- In accordance with the dynamic fuel pricing mechanism, the diesel price in Dehradun, the capital city of Uttarakhand, on the 1st of July stood at Rs.67.70 per litre - the lowest rate registered in the state for the month.
- Prices were hiked over the course of the first and second weeks to touch the highest diesel price in Uttarakhand on the 18th when a litre of diesel was sold at Rs.68.95.
- Prices declined after it peaked on the 18th; however, it was not lower than the opening price of the month.
- On the 31st of July, the diesel price in Uttarakhand stood at Rs.68.25 per litre, an increase of 55 paise per litre over the opening price.
- The diesel price trend in Uttarakhand in July inclined by 0.81% primarily influenced by the slight increase in crude oil prices in the international market.
Diesel Price Trend in Uttarakhand in August 2018
- On the 1st of August, the diesel price in Uttarakhand stood at Rs.68.22 per litre. This was also the lowest price of the month.
- In the first and second weeks, prices continued to incline due to geopolitical tensions between the U.S. administration and Iran.
- The U.S. pulled out of the Iran nuclear deal and decided to impose sanctions on the supply of oil to other countries.
- This led to a shortage in supply of crude oil in the market prompting oil prices to rise significantly across the globe.
- By the end of the month, the price of diesel in Uttarakhand rose to touch Rs.70.69 per litre, which was also the highest price consumers paid in the state.
- The diesel price trend in Uttarakhand in August grew by 3.62% attributed to the increase in crude oil prices in the international market.
Diesel Price Trend in Uttarakhand in September 2018
- In accordance with the daily revision of fuel prices in the country, the diesel price in Uttarakhand on the 1st of September was kept unchanged by oil companies.
- The opening diesel price in Uttarakhand in September stood at Rs.70.69 per litre - the lowest diesel price recorded for the month of September.
- Prices continued to increase over the course of the first and second weeks as crude oil prices rose significantly in the international market.
- Prices of crude oil in the global market touched $80 per barrel prompting fuel prices to incline across the globe. This was due to the shortage in oil supply in the market.
- Also, the rupee depreciated to its lowest against the U.S. dollar as it crossed the Rs.72 mark in exchange to the dollar prompting fuel prices to increase considerably.
- Both of these factors led to diesel prices in the country to touch record levels in the last week of September.
- Several states such as Rajasthan, Karnataka, West Bengal and Andhra Pradesh announced a cut in local sales tax or VAT offering some respite to consumers.
- Overall, diesel prices grew significantly by 6.05% due to the steep rise in crude oil prices and the considerable drop in the exchange rate of the Indian currency over the U.S. dollar.
Quarterly Diesel Price Trends in Uttarakhand between April and June 2018
|Opening date price||Rs.64.97 a litre||Rs.66.22 a litre||Rs.69.57 a litre|
|Closing date price||Rs.66.22 a litre||Rs.69.62 a litre||Rs.67.71 a litre|
|Highest price||Rs.66.26 a litre recorded on the 24th||Rs.69.68 a litre recorded on the 29th||Rs.69.57 a litre recorded on the 1st|
|Lowest price||Rs.64.97 a litre recorded on the 1st||Rs.66.22 a litre recorded on the 1st||Rs.67.71 a litre recorded on the 27th|
Diesel Price Trend in Uttarakhand in April 2018
- India introduced dynamic fuel pricing last year to make the fuel pricing transparent and revise the prices of both of diesel and petrol regularly.
- Dynamic fuel pricing is a common fuel pricing mechanism used by the Indian oil marketing companies, which include Bharat Petroleum, Hindustan Petroleum and Indian Oil.
- During this quarter, like other states, the revision of petrol prices in the state of Uttarakhand was done considering the changes in the USD/INR exchange rate and crude oil prices.
- In Dehradun, the capital city of Uttarakhand, the fuel was valued at Rs.64.97 a litre on the 1st , Rs.65.08 a litre on the 2nd , Rs.65.20 a litre on the 3rd and the 4th , and Rs.65.23 a litre on the 5th.
- Similarly, the Indian oil marketing companies kept on increasing fuel price until the 24th in tandem with the prices of unrefined oi per barrel and the currency conversion rate.
- During the last week, diesel rates in the capital city of Uttarakhand were reported to be constant at Rs.66.22 a litre. The same trend observed in other parts of the state.
- In India, the Indian Basket crude oil per barrel is considered as a benchmark to revise both diesel and petrol rates. It was higher in April 2018 compared to the previous month.
- Thus, diesel rates in Dehradun, Roorkee, Haridwar, Rudrapur, Rishikesh and Kashipur were up by 1.92% this month.
Diesel Price Trend in Uttarakhand in May 2018
- Since the Karnataka state assembly election was declared on 12 May 2018, not only the diesel rates but also the petrol rates across India were retained unchanged during the first elven days of May 2018.
- Between 01 May 2018 and 11 May 2018, diesel was traded at a price of Rs.66.22 a litre in the city of Dehradun. During this period, the fuel was retailed at the same price in other cities of Uttarakhand.
- Diesel rates in Uttarakhand started moving upwards after the completion of the second week of the month. When revised on the 21st, diesel price in the capital city stood at Rs.68.18.
- In tandem with the selling price of crude oil per barrel, the fuel rate in the city was further increased to Rs.69.54 a litre on the 28th.
- The lowest and highest diesel rates in Uttarakhand were Rs.66.22 a litre and Rs.69.68 a litre respectively for the month of May 2018.
- Compared to the previous month, the market price of unrefined oil per barrel was up considerably in May 2018. Therefore, the closing date price for this month was up 5.13% to Rs.69.62 a litre.
Diesel Price Trend in Uttarakhand in June 2018
- The changes in excise duty and Value-added Tax (VAT) are also taken into consideration while revising diesel rates throughout India.
- On diesel per litre, during this quarter, excise duty remained unchanged at Rs.15.33 and VAT at 16.94% in the state.
- Only the changes in crude oil rates and the INR/USD rate were accounted for resetting diesel prices in Uttarakhand in April 2018, May 2018 and June 2018.
- Unlike the first two months, fuel rates Uttarakhand displayed a negative trend provoked by the sagging unrefined oil market.
- On 01 June 2018 the fuel was valued at a price of Rs.69.57 a litre in Dehradun. The price dropped to Rs.68.95 a litre on the 8th, Rs.68.18 a litre on the 16th and Rs.68.04 a litre on the 21st.
- For June 2018, the highest diesel rate was observed at Rs.69.57 a litre at Indian Oil. This was also the highest diesel price for the entire quarter in Dehradun.
- For the whole quarter, the growth rate in diesel prices in Uttarakhand stood at 4.21%.
Trend in Diesel Price in Uttarakhand between January and March 2018
|Opening date price||Rs.60.84 a litre||Rs.64.55 a litre||Rs.63.01 a litre|
|Closing date price||Rs.64.47 a litre||Rs.62.87 a litre||Rs.64.81 a litre|
|Highest price||Rs.64.47 a litre recorded on 31st||Rs.64.64 a litre recorded on 6th and 7th||Rs.64.81 a litre recorded on 31st|
|Lowest price||Rs.60.84 a litre recorded on 1st||Rs.62.86 a litre recorded on 25th||Rs.63.01 a litre recorded on 1st|
Trend in Diesel Price in Uttarakhand in January 2018
- Fuel consumers were offered a price of Rs.60.84 a litre on 1st January 2018 in Dehradun, the biggest and capital city of Uttarakhand, according to the dynamic fuel pricing mechanism.
- The revision of fuel prices will be carried out on the basis of the INR/USD conversion rate and crude oil prices.
- Many factors affect the exchange rate. The RBI declares the value of the USD versus the INR every day. Crude oil prices rely on several aspects including the supply and demand outline, weather reports, fabrication cuts etc.
- On 1st January, the USD/INR was 63.69 and diminished 0.20% to Rs.63.56 on 31st. In January 2018, the average crude oil increased at a decent rate.
- Based on the movements in these two elements, the fuel corporations have gradually accelerated the diesel rate across Uttarakhand.
- In the end, a 0.77% hike was reported during the first week and a 2% rise during the second week. Likewise, the third and fourth weeks have produced a 1.48% rise and a 1.37% rise respectively.
- Not only Uttarakhand but also other states have produced almost the similar drift because of the major deviations in overseas factors.
Trend in Diesel Price in Uttarakhand in February 2018
- Despite a big change in the excise duty and other taxes, diesel rates at Hindustan Petroleum, Bharat Petroleum and Indian Oil were up just by 8 paise per litre as on the opening date.
- In Uttarakhand, OMCs shall compute the price range of diesel considering crude oil costs, both categories of taxes, pollution cess, the commission for dealers, etc.
- In January 2018 and February 2018, in Uttarakhand, the central tax on diesel was fixed at Rs.15.33 a litre. Crude oil retained the similar level of demand during the first 15 days but there was a steep downfall in the demand during the second half.
- Moreover, the USD/INR was declared to be highly explosive on the Foreign Exchange Market. Based on these variations, diesel prices were reset accordingly in all cities in Uttarakhand.
- According to a report by Indian Oil, in February 2018, the average fuel rate has come down marginally. For the last three days, once again, diesel rates have gone up by Rs.1.20 a litre.
- Other international price influencers such as refinery activities, the production pattern and political initiatives had no impression on the pricing of diesel this month.
Trend in Diesel Price in Uttarakhand in March 2018
- Fuel rates have advanced by 2.85% this month because of the increased crude oil rates and a minutely depreciated USD. But, the growth rate has been lower compared to that of in the month of January 2018.
- They have climbed to Rs.63.62 a litre on 7th, Rs.63.53 a litre on 14th, Rs.63.65 a litre on 22nd, Rs.64.27 a litre on 28th. The closing price, the highest price for the month, was Rs.64.81 a litre.
- The highest price for the month of March 2018 also turned out to be the highest price for the whole quarter, which witnessed a total growth rate of 6.52%.
- At Rs.60.84 a litre, the lowest rate was confirmed by Indian Oil and other fuel corporations in Uttarakhand for February 2018. It was also the lowest price for the quarter as well.
- As of 31st January 2018, the expenses spent by HPCL, BPCL and IOL were Rs.10.30 a litre. The commission, which was charged by dealers, was Rs.2.51 a litre.
- Changes were noted only in the INR/USD exchange ratio and crude oil costs between January 2018 and March 2018.
- Thus, diesel rates in Uttarakhand were up in January 2018 and March 2018 and were down in February 2018.
Forces Influencing Diesel Price in Uttarakhand
The exchange rate is the largest influencer. The cost of crude oil will vary if there is a change in the USD/INR exchange rate. It will be decided on a daily basis in sync with inflation rates, bank interest rates, the Gross Domestic Product (GDP). Any variations in the demand and supply of crude oil, the operational efficiency of oil-extracting entities, the domestic and international political events will affect the cost of unrefined oil, which in turn affects the current diesel price in Uttarakhand.
Taxes vs Today’s Diesel Price in Uttarakhand
In India, diesel is taxed at the central and state levels. The central and state levies may be changed anytime. The central tax on diesel was cut by Rs.2 a litre in October 2017. It was revised recently in February 2018. The revision of the state and central taxes will affect today’s diesel rate in Uttarakhand. Similarly, the imposition of Value-added Tax directly affects the RSP of the fuel as well.
GST vs Current Diesel Rate in Uttarakhand
Currently, diesel prices in Uttarakhand will remain unaffected by the Goods and Services Tax (GST). It is an indirect tax form and is levied at each value addition. The central levy for diesel and petrol is 23%. The total tax will be 57%. If diesel is brought under the GST regime, the maximum tax rate applicable is 28% only. At 28%, the cost of diesel per litre in the state will slide by 50%. The public will be benefited from this move, but not the government. Therefore, diesel is outside the regime of the Goods and Services Tax.
*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.