Diesel Price In Srinagar Today

Components Affecting the Diesel Price in Srinagar

India buys nearly 70% of crude or unrefined oil from oil-producing countries, hence cost of crude oil and freight price is the basis of diesel pricing. State-owned oil marketing companies (OMCs) purchase crude oil, refine and transport it to dealers or petrol pump owners across the country. Let's look in detail the components affecting the diesel price in Srinagar.

1. Crude Oil Price: Indian oil-companies buy crude oil in the international market at the current rate. Therefore, any change in the price for a barrel of crude oil impacts the diesel price in Srinagar and other cities. The global crude oil price fluctuates based on production cuts, demand pattern for the commodity, seasonal variations, etc. The price of crude oil is expected to surge when the demand for it increases in the international market.
2. Exchange Rate of the US Dollar: Since OMCs buy crude oil in US dollars, any shift in the dollar value influences the crude oil price. Any increase in the US dollar value increases the crude oil price and thereby increasing the diesel price or vice versa.
3. Taxes on Diesel: Diesel comprises of two taxes - excise duty and Value Added Tax (VAT). While the excise duty is levied by the Centre, VAT is charged by the State government. Currently, the Centre imposes Rs.15.33 as excise duty for a litre of diesel, while the State Government of Jammu and Kashmir charges VAT at 17.12%. Together, they form one of the biggest components of diesel pricing.
4. Demand & Supply Pattern: Countries such as India and China heavily depend on fuel to aid their economy. Any increase in demand for crude oil in the market leads to a hike in the diesel price. Also, if there are any supply constraints, OMCs have to bid at a higher value to purchase crude oil, which influences the diesel rate in Srinagar.
5. Profit Margin & Commision: As mentioned, oil companies transport crude oil from a foreign land to India, refine them and then transport it to dealers. These companies add their marketing costs, freight, profit margin, etc. before it's sold to dealers or petrol pump owners. Dealers store, maintain fuel stations and dispense diesel for which they take a cut known as a commission. Both these charges form one of the components which affect the diesel rate.

How Often Do Diesel Prices in Srinagar Are Revised?

Until 16 July 2017, diesel prices were revised on a fortnight basis; however, it's now being revised under the new 'dynamic fuel pricing' mechanism. The new pricing method revises fuel prices on a daily basis in accordance with the crude oil price in the global market. The change in pricing mechanism was to avoid any losses to the oil-companies if there's any surge in the price of crude oil. Diesel prices in Srinagar are revised daily at 6 a.m. IST. While it's automatically updated in automated fuel stations, it's manually updated at non-automated petrol pumps.

Ways to Track Diesel Rates in Srinagar

Since diesel prices are revised daily, it's important to know how to track the diesel price on a daily basis. The oil companies have launched multiple methods to track or get diesel price in Srinagar as well as other cities in the country. From mobile apps, SMS service to online portals, one can find out the current diesel price. For those of you who use Indian Oil Corporation Limited (IOCL) fuel stations, you can download and install the 'Fuel@IOC' mobile app to track the current diesel rate, for Bharat Petroleum Corporation Limited (BPCL) customers, one can install the 'SmartDrive' app, while Hindustan Petroleum Corporation Limited (HPCL) can utilise 'MY HPCL' app.

For those who wish to use the SMS service, below is the process to send the SMS and get the current diesel price.

1. IOCL: Type RSP dealer code and send the SMS to 9224992249.
2. HPCL: Type HPPRICE dealer code and send the SMS to 9222201122.
3. BPCL: Type RSP dealer code and send the SMS to 9223112222.

Customers can also visit the respective OMCs online portal to get the current diesel rate in Srinagar as well as other cities in the country. Apart from online methods, one can take advantage of the offline method of calling the OMCs customer care to track fuel prices.

What is the GST on Diesel in Srinagar?

From 1 July 2017, India moved to a new tax regime, the Goods and Service Tax (GST), applicable on all commodity trading and services. However, petroleum products such as diesel and petrol were kept away from the framework of the GST. While the maximum tax slab on the GST is 28%, the Centre's and the State's VAT is much higher. The Centre and states receive massive revenue by taxing diesel through excise duty and VAT respectively. Any cut in taxes will decrease the revenue generated from selling diesel or petrol in the country, which will have a huge impact on the country's exchequer. Hence, the GST is not applicable on diesel and petrol, 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.