Diesel Price In Raipur Today

Factors Affecting Diesel Rate in Raipur

The two factors that impact diesel price in Raipur on a day to day basis are the global crude oil prices and the currency exchange rate.

1. Crude Oil Prices: Due to dynamic fuel pricing model, diesel prices in India are aligned with the international crude prices. Global crude oil prices change every day based on various factors including demand and supply and political stability in the oil-producing countries, climatic conditions, and similar other factors. In order to make Indian oil prices align to the international market prices, diesel prices in India are revised on a daily basis. Any slight change in the global crude price, thus, impacts the retail selling price of diesel in India.

1. Currency Exchange Rate: Another element that affects diesel price on a day to day basis is the currency exchange rate. As oil trading typically happens in US dollars, the stronger the dollar the higher the price of oil in international market. Since the exchange rate also changes on a daily basis, diesel price will be revised accordingly. Hence, any major change in the rupee value would affect diesel prices in India.

Besides the above two mentioned factors, there are a few domestic factors that affect diesel price in Raipur as explained below

1. State Government Taxes on Diesel in Raipur: Chhattisgarh, similar to other Indian states, levies value added tax (VAT) on every litre of diesel sold in the state and hence in Raipur, as well. Currently, Chhattisgarh government charges 25.81% VAT on diesel, which is the third highest tax rate in the country. Though the tax rate does not affect diesel price on a daily basis, any revision would directly impact the price of diesel across all the cities and towns in the state.

1. Central Government Taxes: The central government collects excise duty on every litre of diesel sold in the country. Similar to state tax, excise duty on diesel does not affect its price on a daily basis. Currently, after the recent cut in the excise duty by Rs.2/Ltr, the centre levies excise duty of Rs.15.33 per litre of diesel.

1. OMCs Profit Margins: The downstream oil market in India, which includes refining, processing and purifying of crude oil purchased from other countries, is controlled by state-owned oil marketing companies (OMCs) namely, Indian Oil Corporation (IOCL), Hindustan Petroleum (HP) and Bharat Petroleum (BP). The companies conduct the refining and distribution activities hence would charge marketing and distribution costs and profit margins to the cost price of diesel before selling it to the petrol pump dealers.
2. Dealers Commission: Petrol pump dealers purchase diesel from the OMCs. They then add their commission, which factors in employee minimum wage, to every litre of diesel sold at their station. The dealers commission is typically decided by the OMCs, who would revise the same once every year.

Breakdown of Diesel Price in Raipur, Chhattisgarh

Using the factors listed above, let's see how the diesel rate in Raipur on 19th April 2018 was calculated.

*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.