Diesel Price In Indore Today

In fact, diesel rates fluctuate from one city to another. It is because of the local tax imposed on the fuel by states. During the first week of November 2017, the fuel was sold at average price of Rs.59.00 in Bangalore, the capital city of Karnataka. In Chennai, the capital city of Tamil Nadu, during the same period, the average price of the fuel was Rs.61.20 and in New Delhi, the capital city of New Delhi, it was Rs.58.20. In Mumbai, the capital city of Maharashtra, the price was nearer to Rs.61.

How are Diesel Prices in Indore Revised?

Indian Oil, Hindustan Petroleum, Bharat Petroleum and Shell Oil, which are the premier oil brands, have started revising fuel rates (diesel and petrol) on a daily basis since 16 June 2017 in Indore. This new fuel pricing mechanism is called dynamic fuel pricing that has also been adopted by Australia, the United States of America (USA) and Russia. Be advised to check the daily price since it is changing every day. In the first month of dynamic fuel pricing, the fuel prices have reduced marginally.

As mentioned in the previous section, the price revision is done based on two aspects, which include crude oil prices and the conversion rate of INR/USD. The biggest advantage of dynamic fuel pricing is that the daily variations in the exchange rate and the cost of crude oil can be passed on to end fuel consumers someone like you. In other words, consumers are linked to market dynamics. In the previous fuel pricing mechanism, fuel prices used to be updated twice a month, i.e., on 1 and 16 of every month.

Benefits of Dynamic Fuel Pricing

The Dynamic Fuel Pricing system has many significant advantages over the fortnightly revision. Consumers will pay the price, which is 100% transparent. Stock management is no more a daunting task from the stance of dealers. Cash management can be easier for them. The working capital, which is important for day-to-day operations, can be easily managed. The daily revision system aligns the Indian fuel retailing industry to overseas fuel markets.

How to the Current Diesel Prices in Indore every day?

Well, diesel customers from Indore can make use of the mobile applications offered by all the four oil marketing companies. Smartphone users can download the mobile application of their choice in order to check the current diesel price. Customers who are not using smartphones can make use of SMS alerts and customer support services offered by these companies. If not, they can also check online. Most people prefer downloading mobile applications for better accessibility.

How are Diesel Prices in Indore Assessed?

What are the elements of the retail selling price of diesel? Do you know? The diesel price remitted by you comprises of taxes, crude oil prices, refinery transfer fees, dealer commission, marketing and operational expenses incurred by oil marketing companies (OMCs), the profit margin of OMCs, the commission charged by dealers, freight charged and entry taxes incurred by OMCs and pollution cess. Among all these costs, crude oil prices are based on global economics. As on 4 October 2017, the central excise duty collected on diesel was Rs.15.33 per litre. The WTI Crude Oil price per barrel was $56.49 as on 8 November 2017.

Which are the Factors Affecting Diesel Prices in Indore?

The Retail Selling Price of Diesel will increase under the following circumstances:

1. When the cost of crude increases globally
2. When the INR, the currency of India, devalues against the USD, the currency of the USA
3. When the taxes collected by both the central and state governments increase

On the other hand, the Retail Selling Price of Desel will diminish under the following circumstances:

1. When crude oil rates decrease in transnational markets
2. When the USD depreciates against the INR
3. When the excise duty and local tax decrease

GST vs Diesel Prices in Indore

As we all know, the Goods and Service Tax (GST) is the biggest tax reform in India. It is imposed on all categories of services and commodities at four tax rates: 5%, 12%, 18% and 28%. Diesel and petrol do not come under the purview of GST. Therefore, the new tax regime does not impact diesel prices. It may be levied on diesel in the future by revising the existing rates. Even though diesel is taxed at 28%, which is the highest GST rate, the diesel price will dampen by a big margin. As a result, the government loses the major source of revenue.