Diesel Price in West Bengal
This article is aimed at discussing the recent developments in the Indian fuel sector. The targeted audience of the article will be the diesel users from West Bengal, which is growing in terms of indigenous production. The topics that are discussed throughout the article encompass the diesel pricing, dynamic fuel pricing, the price structure of diesel, the impact of GST on fuel prices, etc. Let’s first understand the current trend in diesel rates in West Bengal by taking into account three notable towns, which include Kolkata, the capital city, Asansol and Siliguri.
A Comparative Study of Diesel Prices in West Bengal
The diesel prices in Kolkata, Siliguri and Asansol were Rs.62.36 a litre, Rs.64.36 a litre and Rs.62.50 a litre respectively on 1 January 2018. On the closing day of the month, they were Rs.66.67 a litre, Rs.68.90 a litre and Rs.66.93 a litre respectively. In February 2018, the diesel rates in Kolkata, Siliguri and Asansol were Rs.66.78 a litre, Rs.68.91 a litre and Rs.66.92 a litre respectively as on the opening day. When revised in March 2018, the diesel price in the capital city was Rs.65.40 a litre, Rs.67.02 a litre in Siliguri and Rs.65.09 a litre in Asansol respectively. Compared to Kolkata and Asansol, the price of diesel in Siliguri is higher because of the dealer’s commission.
|Also Check: Diesel Price in Kolkata|
The retail selling price you pay finally at fuel stations is inclusive of taxes (both state and central) and crude oil rates. As of early March 2018, the excise duty levied by the Government of India on diesel was Rs.15.33 a litre. As of 4 September 2017, the Value-added Tax levied by the Government of West Bengal was 18.47%. It is usually charged at the price charged to fuel retailers. With respect to the VAT, the Indian states have different norms. In 15 states, the VAT on diesel is in excess of 20%. In Andhra Pradesh, it is the highest at 31.06%.
Dynamic Fuel Pricing vs Today’s Diesel Price in West Bengal
What do you mean by dynamic fuel pricing? In simple words, it is a system that has recently been deployed to update fuel prices in West Bengal, including other Indian states. According to this system, all publicly-owned oil companies in India are necessitated to update fuel rates (diesel rates and petrol rates) each day based on the performance of unrefined oil costs and the exchange ratio. It has been in place in West Bengal since the last 9 months. After the rollout in June 2017, diesel prices in West Bengal began sliding initially. Between June 2017 and March 2018, they have moved in both directions: upward and downward.
Quarterly Diesel Price Trend in West Bengal between October and December 2018
|Opening date price||Rs.77.01 a litre||Rs.75.68 a litre||Rs.74.62 a litre|
|Closing date price||Rs.75.68 a litre||Rs.69.65 a litre||Rs.70.92 a litre|
|Highest price||Rs.77.59 a litre registered on the 17th||Rs.75.68 a litre registered on the 1st||Rs.74.62 a litre registered on the 1st|
|Lowest price||Rs.75.68 a litre registered on the 31st||Rs.69.65 a litre registered on the 30th||Rs.70.92 a litre registered on the 31st|
Diesel Price Trend in West Bengal Between October and December 2018
- Diesel prices in West Bengal and other states in the country are revised daily by State-owned oil companies. They consider the 14-day average price of crude oil and the exchange rate of rupee over the US dollar under the ‘Dynamic Fuel Pricing’ mechanism.
- Under this pricing method, diesel was priced Rs.77.01 per litre in West Bengal on 1 October, a record high as crude oil prices were trading higher than usual.
- Prices continued to soar as it recorded the highest price for the month when it was sold at Rs.77.59 per litre on 17 October.
- Despite the reduction in the excise duty on fuel, prices continued to rise on the back of the record high crude oil prices.
- After touching record highs, prices of diesel declined by the end of the month to register a decline of 1.72% during the month.
- On 1 November, diesel was sold at Rs.75.68 per litre in West Bengal, the highest price recorded for this month.
- Geopolitical tensions between the US and China over trade between the two nations led the crude oil prices to trade higher in the international market.
- Prices of diesel in West Bengal during November declined by 7.96%, declining significantly due to the sharp fall in crude oil prices in the global market.
- Diesel was priced Rs.74.62 per litre on 1 December, which was also the highest rate recorded during the month.
- Crude oil prices were down from $80 per barrel early October to around $56 per barrel late December prompting fuel prices in the country to drop sharply.
- The fall in crude oil prices was attributed to the decline in the trade war between the US and China.
- By the end of the month, the diesel price trend in West Bengal declined significantly by 4.95% due to the decline in oil prices as well as due to the marginal appreciation of the Indian currency over the US dollar.
All oil enterprises, including Indian Oil Corporation Limited, Bharat Petroleum Corporations Limited and Hindustan Petroleum Corporation Limited, are contemplating a proposal that shall permit regular variations in fuel rates in consideration with overseas crude oil prices. Dynamic fuel pricing is also called the daily price revision system. It does not let oil companies await for a period of fifteen days to offer revised fuel rates to the public. Moreover, it helps the country to go ahead with an international standard. The initiative will also free privately-owned oil companies such as Reliance Industries and Essar Oil, which have currently been following to the price quoted by state-run oil companies.
Quarterly Diesel Price Trend in West Bengal between April and June 2018
|Opening date price||Rs.67.27 a litre||Rs.68.63 a litre||Rs.71.78 a litre|
|Closing date price||Rs.68.63 a litre||Rs.71.83 a litre||Rs.69.93 a litre|
|Highest price||Rs.68.66 a litre recorded on the 24th||Rs.71.89 a litre recorded on the 29th||Rs.71.78 a litre recorded on the 1st|
|Lowest price||Rs.67.27 a litre recorded on the 1st||Rs.68.63 a litre recorded on the 3rd||Rs.69.93 a litre recorded on the 1st|
Diesel Price Trend in West Bengal in April 2018
- Diesel price trend depends on several aspects such as crude oil expenses, the exchange rate, OMC expenses and taxes. In April 2018, OMC expenses and taxes were not revised.
- Throughout the month, diesel prices in all the major cities in West Bengal, including Kolkata, Durgapur, Siliguri and Asansol moved in tandem with crude oil costs and the exchange rate of the INR versus the USD.
- For the first five days, the highest diesel rate in Kolkata, the capital city of West Bengal, was registered at Rs.67.58 a litre on the 5th; and the average fuel rate stood at Rs.67.47 a litre.
- Diesel rates in the capital city were steady at Rs.67.66 a litre on the 12th and the 9th. They were also constant at Rs.67.55 a litre on the 3rd and the 4th.
- Till the 24th, fuel rates were on the rise. They remained steady at Rs.68.63 a litre during the last week of the month.
- As the average cost of crude oil per barrel increased slightly this month, the Indian fuel companies such as Bharat Petroleum, Hindustan Petroleum and Indian Oil accelerated the fuel rate by 1.06% in all parts of the state.
Diesel Price Trend in West Bengal in May 2018
- The fuel rate was fixed at Rs.68.63 a litre under dynamic fuel pricing on the 1st. No fuel rates were changed during the first eleven days of the month. It was because of unchanged crude oil rates in overseas markets.
- At Indian Oil, diesel was retailed at an average price of Rs.69.21 a litre in the capital city of West Bengal during the third week. The average fuel rate increased to Rs.71.26 a litre during the last week of May 2018.
- Neither central taxes nor state taxes were revised in this month also. Diesel rates in prime cities of West Bengal such as Kolkata, Siliguri, Durgapur and Asansol were up by 4.66% because of the variations in crude oil rates.
- For this month, the average crude oil per barrel stood at $75.31.
- The highest fuel rate for the month stood at Rs.71.89 a litre. It was recorded on the 29th. The opening date price was Rs.68.63 a litre, which was also the lowest fuel rate for the month.
Diesel Price Trend in West Bengal in June 2018
- Compared to the last two months, diesel price trends in West Bengal were completely different this month.
- Throughout the month, diesel rates moved downwards. By the end of the first week, the fuel rate stood at Rs.71.31 a litre.
- For the third week, the average fuel rate stood at Rs.70.62 a litre whereas the average fuel price for the fourth week stood at Rs.70.33 a litre. During the last four days of the month, the fuel was retailed at an average rate of Rs.69.93 a litre.
- Crude oil costs were reduced to $73.85 per barrel this month. Because of this reason, diesel rates were down 2.57% to Rs.69.93 per litre.
- The highest and lowest diesel rates for this month stood at Rs.71.78 a litre and Rs.69.93 a litre respectively.
- Between April 2018 and June 2018, diesel rates in all cities of West Bengal were reported to be up by 1.54%.
Quarterly Diesel Price Trend in West Bengal between July 2018 and September 2018
|Opening date price||Rs.69.93 per litre (As of 2 July)||Rs.70.73 per litre||Rs.73.10 per litre|
|Closing date price||Rs.70.61 per litre||Rs.73.10 per litre||Rs.76.35 per litre|
|Highest price||Rs.71.06 per litre||Rs.73.10 per litre||Rs.76.35 per litre|
|Lowest price||Rs.69.93 per litre||Rs.70.73 per litre||Rs.73.10 per litre|
Diesel Price Trend in West Bengal in July
- The trend in diesel prices across India is identified considering movements in diesel prices. Fuel pricing is done based on a dynamic fuel pricing system.
- In the entire month, the fuel companies used the mechanism of dynamic fuel pricing, which is also called the daily revision system, to review the rate of diesel in Kolkata and all other parts of West Bengal.
- The exchange rate has to be considered as crude oil is borrowed in India from other countries and even crude oil rates are taken into account to reprice diesel every day.
- Under the daily revision system, the price may go up or fall down or remain unchanged in sync with the crude oil costs and the exchange rate.
- In the first four days, the price was stable and in the second week, it went up marginally. Once again in the third week, it fell down.
- There was no big difference observed as far as diesel prices in West Bengal are concerned this month.
- It was due to a minute downfall in the price of crude oil per barrel (monthly average) and a slightly dropped INR.
- The closing date price was Rs.70.61 per litre and the highest rate for the month stood at Rs.71.06 per litre.
Diesel Rate Trend in West Bengal in August
- The revision of diesel prices took place throughout the month under the daily revision mechanism. As of 1 August 2018, the price of diesel a litre in Kolkata, the capital city of West Bengal, increased by 12 paise.
- On the 3rd also, the fuel price was also up by 11 paise per litre. Within the first seven days of the month, the fuel rate per litre went up to Rs.71.35 in the city.
- In the middle of the month, the fuel was retailed at a price of Rs.71.35 per litre. In tandem with the global aspects, Indian Oil, Hindustan Petroleum Bharat Petroleum increased diesel rate by more than 30 paise per litre on 16 August.
- Fuel rates in Kolkata were also constant at Rs.71.74 per litre, Rs.71.99 per litre and Rs.72.07 per litre respectively.
- From 0.97%, the growth rate soared to 3.35% as the rupee dropped against the USD and the crude oil rates increased.
- While the lowest diesel price in Kolkata was recorded at Rs.70.73 per litre, the highest diesel rate was registered at Rs.73.10 per litre.
- Any variations in the sales tax, which is also called the Value-added Tax, and the excise duty, the central tax, should be considered while reviewing the rate of diesel.
- No impact of the excise duty and the value-added tax was seen on the pricing of diesel in July and August also.
Diesel Rate Trend in West Bengal in September
- For the first two days of September, at Indian Oil fuel supply centres, the price of the fuel stood at Rs.73.10.
- The price further went up to Rs.74.08 per litre on the 3rd. At Rs.74.27 per litre, the fuel was marketed at a price on the 4th and the 5th.
- Between 7 September and 9 September, the fuel traded at a price of Rs.75 per litre. On the 11th and the 12th, the fuel was purchased at a rate of Rs.75.90 per litre in Kolkata.
- On the 18th of September, the fuel rate stood at Rs.75.80 per litre and the same price was retained until the 22nd.
- For the last three days of the month, the fuel was marketed at a price of Rs.76.35 per litre in the capital city of Kolkata.
- For many days in September, diesel prices in West Bengal (all parts of West Bengal) exhibited the same trend instigated by the transnational aspects.
- While the growth rate in this month was accounted at 4.44%, the diesel rate across the state increased by Rs.7 per litre over the last three months.
Quarterly Diesel Price Trend In West Bengal Between January 2018 And March 2018
|Opening date price||Rs.62.36 per litre||Rs.66.76 per litre||Rs.64.99 per litre|
|Closing date price||Rs.66.67 per litre||Rs.64.82 per litre||Rs.67.09 per litre|
|Highest price||Rs.66.67 per litre recorded on 31st||Rs.66.87 per litre recorded on 6th & 7th||Rs.67.09 per litre recorded on 31st|
|Lowest price||Rs.62.36 per litre recorded on 1st||Rs.64.81 per litre recorded on 25th||Rs.64.99 per litre recorded on 1st|
Diesel Price Trend In West Bengal In January 2018
- Diesel price in West Bengal on 1st January 2018 stood at Rs.62.36 per litre, which is also the lowest for the month.
- Due to the rise in crude oil prices in the global market, diesel prices continued to rise by as much as a Rupee in the second week of the month.
- The hike in international crude oil prices as well as the decline in the USD led to the daily rise in fuel prices for the month.
- The highest price for a litre of diesel stood at Rs.66.67 on 31st January largely impacted by the rise in the Indian Basket price for crude oil.
- The Indian Basket rate for crude oil stood at $67.50 per barrel on 10th and increased to $68.11 per barrel on 26th January.
- West Bengal recorded an upward trend in diesel prices for the month at 6.91%. The upward trend is attributed to the rise in the global crude oil prices.
Diesel Price Trend In West Bengal In February 2018
- On 1st February, diesel price stood at Rs.66.76 per litre in West Bengal, a slight increase over the previous day’s price.
- Driven by the increased demand for crude oil in the global market, fuel prices rose to record its highest for the month at Rs.66.87 per litre on 6th and 7th February.
- During the second and third weeks, prices of diesel continued to rally downwards and registered their lowest at Rs.64.81 per litre on 25th.
- The decline in the prices of fuel was in tandem with the increase in the INR value over the dollar. Also, in the last two days of the month, the Indian Basket rate reduced from $65.12 per barrel to $63.99 per barrel which led to the reduction in the daily price of diesel in West Bengal.
- Overall, West Bengal witnessed a downward trend in diesel prices for the month depreciating at 2.90%. The decline in international crude oil prices is largely the reason behind the fall in fuel prices.
Diesel Price Trend In West Bengal In March 2018
- A litre of diesel in West Bengal on 1st March stood at Rs.64.99. This is the lowest retail price for a litre of diesel for the month.
- By the end of the first week, diesel prices rose by as much as 70 paise only to rise In the second and third weeks by a slight margin. However, towards the third and the fourth weeks, fuel prices began to increase.
- The rise in diesel prices in the fourth week is largely due to the increase in international crude oil prices. A barrel of crude oil in the international market stood at $62.04 on the 14th, which rose to $66.80 per barrel on 26th.
- On the last day of March 2018, West Bengal witnessed its highest diesel price of Rs.67.09 per litre for the month.
- With the Excise Duty and Value Added Tax rates untouched, a key factor in the revision of diesel prices in India, diesel prices continued to rise in sync with the increase in the cost of a barrel of crude oil in the global market.
- Diesel prices in West Bengal in March 2018 reflected an upward trend at 3.13% influenced by the rise in prices of the unrefined oil in the international market.
Prime Benefits of Daily Revision System
Fuel consumers in West Bengal, oil companies and dealers will be benefited from the daily revision system. Today’s diesel price in West Bengal is set considering the previous day’s price of crude oil and the exchange ratio. In transnational markets, if the crude oil’s price falls today, the retail selling price will be lowered tomorrow. This way fuel users will be benefited. The daily revision system has been extremely useful to oil corporations, which will flawlessly monitor inventories and reduce day-to-day expenses. In a nutshell, dynamic fuel pricing will address the difficulties that were earlier faced by oil companies and end users in the state.
Is There a Way to Trace the Latest Diesel Price in West Bengal?
Do you use a smartphone? If yes, consider using the mobile applications crafted by all three state-run oil entities. If not, consider checking the current fuel rates online. Today, a vast number of smartphone users span across the country began using the mobile applications, which are easy to download, use and customer-friendly. You can use either Fuel@IOC or My HPCL or SmartDrive. Fuel@IOC is offered by Indian Oil Corporation Limited, SmartDrive by Bharat Petroleum Corporation Limited, and My HPCL by Hindustan Petroleum Corporation Limited. This is how you can keep a track of the current diesel price in West Bengal.
The Process of Setting Diesel Price in West Bengal
Oil marketing companies or OMCs fix and revise the fuel prices in the state. They play a major role in supplying the fuel to end users in India. Firstly, OMCs borrow crude oil from oil-exporting economies. The imported unrefined oil will be sent to refinery centers. Then, the refined oil, which is diesel, is marketed throughout the country through retail stations. The Indian OMCs determine the current diesel rate in West Bengal in the following steps:
- Firstly, the cost of crude oil a litre is computed. The cost of crude oil per litre = Crude oil price per barrel X the exchange value of the USD against the INR / 159. As of early March 2018, the price of a litre of unrefined oil was Rs.26.42.
- Secondly, the OMCs’ expenses are added. The overall expenses spent by OMCs as of early March 2018 was Rs.8.37 a litre on diesel.
- Thirdly, the excise duty is levied at Rs.15.33 a litre. After levying the excise duty, the cost of diesel works out to be Rs.52.12 a litre approximately.
- Fourthly, the dealer’s commission and the VAT are levied. The dealer ’s commission was Rs.2.51 a litre as of March 2018. As of September 2017, the VAT levied by the West Bengal’s Government was 18.47%. Finally, a pollution cess of 25 paise a litre is added.
- Now, the diesel price in West Bengal works to be Rs.63 a litre approximately as of March 2018.
Influencers of Today’s Diesel Rates in West Bengal
The supply of crude oil impacts the price of the fuel greatly in all parts of the country, including West Bengal. The price will increase when the supply of oil is lower than the expected level. The supply level of oil may change on the basis of demand and fabrication. The quality of oil also makes a difference. The present and projected demand for oil is another influencer. In the domestic market, the diesel price will fall if there is a drop in the demand for oil and vice versa. The diesel prices in West Bengal and other states are impacted by the oil futures market, the variations in the USD/INR conversion rate, political aspects, weather conditions etc. If oil-producing countries declare a production cut, the cost of crude oil will be impacted in global marketplaces. As a result, the current diesel rate in West Bengal is impacted.
What is the Impact of GST on Petrol and Diesel Prices in West Bengal?
As we all know, the Goods and Services Tax is basically an indirect tax form that replaces the earlier taxes. It is one of the best reforms. Many people do not know that diesel and petrol are outside the limit of the GST. So, the GST system has nothing to do with the current diesel rate in West Bengal. The inclusion of diesel will make fuel prices cheaper to end users, but both the Central Government of India and the State Government of West Bengal are like to suffer losses. Therefore, diesel is free from the GST tax structure currently.
*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.