Today's Diesel Price 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.

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.

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:

1. 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.

1. 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.

1. 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.

1. 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.

1. 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.