Diesel Price In Rajkot Today

Other countries that follow the same fuel pricing system include Russia, Japan and the United States of America. In India, dynamic fuel pricing methodology came into effect on 16 June 2017. Prior to implementing this system, a 40-day pilot was run. It is alternatively referred to as the daily revision system. It is successful in India so far and is advantageous for diesel consumers and oil marketing companies.

Key Benefits of Dynamic Fuel Pricing

The key benefit of dynamic fuel pricing is that it encourages automation drive of OMCs. What does it mean? The revision of fuel price can be done automatically by automated diesel bunks and manually by non-automated diesel bunks. Automated diesel bunks can curb operational overheads and save time also. Dynamic fuel pricing makes sure that fuel pricing is 100% translucent. More importantly, it lets diesel consumers in Rajkot to pay the market-specific prices.

Additional benefits of Dynamic Fuel Pricing for OMCs

1. OMCs can save time and money.
2. OMCs can provide the best services to fuel consumers in Rajkot.
3. The fuel retailing segment of India may be interlinked to global markets.
4. OMCs can adopt the best working capital management and stock management principles.

How can the latest Diesel Price be checked in Rajkot?

Fuel rate is varying every day. So, consumers have to trace it regularly. It can be traced using both online and offline methods. For instance, if you are using a smartphone, you can download the mobile application designed by OMCs and trace the today's diesel price in Rajkot easily. Since OMCs update the revised diesel prices on their websites, they can be traced online by visiting the respective websites of OMCs. If not, the current diesel price in Rajkot can be obtained through sending an SMS request.

Methodology used to assess the Diesel Price in Rajkot Today

What are the elements involved in the price, which you finally pay. The cost elements can be clubbed into three categories:

1. Price of Crude Oil: The price of crude oil is the primary cost element and is tagged in transnational markets. As on 27 January, a barrel of Brent Crude Oil retailed at $70. Market experts anticipate this price to grow by 20% next year.

1. Taxes: Diesel is a subsidised fuel in India. Presently, it is taxed at 28.96% by the local government of Gujarat. The local tax on diesel varies from one destination to another. In October 2017, the central government declined the excise duty by Rs.2 a litre.

1. OMC Expenses: The retail selling price of diesel encompasses the expense spent by OMCs. They include entry levies, refinery transfer price, and freight and carriage. The retail selling price also includes pollution cess, commission charged by diesel bunk owners in Rajkot and the profit margin of OMCs.

Factors affecting Diesel Prices in Rajkot

Diesel prices in Rajkot are affected by the exchange rate of the INR and the USD, the cost price of crude oil and taxes. When the INR drops against the USD, the cost of crude oil increases and as a result, the retail selling price goes up. Similarly, when the USD drops against the Indian currency, the cost of crude oil falls down and a result, the buying price of crude oil increases. Similarly, any changes in the tax rates will proportionately affect the diesel rate in Rajkot.

GST vs Diesel Prices in Rajkot

The Goods and Services Tax (GST) is currently in practice. The system taxes all kinds of goods and commodities under the four tax slabs: 5%, 12%, 18% and 28%. But, diesel is not taxed under the GST system presently. However, the diesel price remains unaffected by the GST system. If the GST is imposed on diesel at the current rates, the revenue source for the government shall be negatively affected. It may be levied in the future.