Diesel Price In Surat Today

Let's understand the concept of dynamic fuel pricing through an example. On 10 June 2018, diesel was valued at Rs.72.95 a litre in Surat. The fuel price decreased to Rs.72.79 a litre on 11 June 2018. On 12 June 2018, diesel rate in Surat further slid to Rs.72.68 a litre. With effect from 06:00 am on 14 June 2018, though the dynamic fuel pricing was implemented, the rate remained unchanged at Rs.72.68 a litre. Here, we can observe fuel rates changing every day. This is because of dynamic fuel pricing which revises the price of diesel considering the changes in the currency conversion rate and crude oil costs.

Why Dynamic Fuel Pricing?

All industry participants can benefit from dynamic fuel pricing. Oil Marketing Companies are allowed to reduce the operational expenses as much as possible. They are also permitted to manage their daily working capital better. Most importantly, dynamic fuel pricing promotes the automation drive for Oil Marketing Companies. The system is also extremely useful to end diesel customers. It does not allow the fuel rates to change in a big margin. Even the smallest change can be transmitted to fuel buyers in your city. For example, if the cost of crude oil falls by a small margin, diesel price will be reduced for customers. Moreover, fuel companies can achieve 100% transparency in the pricing of diesel.

How can I Trace Today's Diesel Price in Surat?

Diesel is marketed by Hindustan Petroleum, Bharat Petroleum and Indian Oil. You may be a customer of HPCL or a customer of BPCL or a customer of IOCL. The question is, how can the latest diesel price in Surat be traced easily? Well, you have two options - mobile apps or SMS. If you are using a smartphone, be sure to make use of customised mobile applications provided by OMCs. SmartDrive is a mobile application framed and offered by BPCL for its regular customers. Similarly, IOCL has developed a mobile application called Fuel@IOC. HPCL customers are advised to use My HPCL to trace the current fuel price in your city.

SMS Facility to Get Current Diesel Rate in Surat?

1. Indian Oil provides an SMS service for its consumers who are required to send an SMS request to 9224992249 in a certain format. The format is RSP DEALER CODE to 9224992249.
2. BPCL customers can send an SMS request to 9223112222 in a prescribed format. The format is RSP Dealer Code to 9223112222.
3. Likewise, customers of HPCL can receive the current fuel price in Surat by sending an SMS request to 9222201112 and the format to send the request is HPPRICE DEALER CODE to 9222201122.

Components involved in RSP of Petrol in Surat?

RSP stands for Retail Selling Price. It is charged by fuel dealers. What is the procedure followed to assess the RSP of petrol? It is an interesting question, which needs to be answered. Diesel is valued by respective fuel brands, which follow a simple procedure. The final price is computed by adding all the cost aspects, which include taxes, crude oil costs, commission for fuel marketers and expenses spent by Oil Marketing Companies. Put simply,

Diesel price in Surat = excise duty + value-added tax + commission charged by dealers + cost of crude oil + OMC expenses

Forces Impacting Diesel Price in Surat?

1. Cost of crude oil: The recent hikes in diesel rates are the result of the increased crude oil costs. Political factors, production patterns and overseas demands will affect the pricing of diesel. For example, if the demand for unrefined oil goes up in international markets, the cost of crude oil also goes up and as a result, diesel prices will increase in all cities of India, including Surat.

1. Taxes: Every product is sold with a tax bracket. Similarly, diesel is taxed by the Central Government and State Governments. On diesel, VAT is charged by the State Government of Gujarat whereas excise duty is levied by the Government of India. OMCs have to adjust fuel rates if there is a change in excise duty and Value-added Tax.

1. Exchange rate: The USD/INR currency pair expresses the value of the USD against the INR. It directly affects the value of the fuel. Crude oil costs will increase when the greenback falls against the local currency. It will decrease when the greenback increases versus the local currency, the INR.

GST impact on Diesel Price in Surat

Diesel has been excluded from the GST purview. So, GST has nothing to do with diesel price in Surat. The Central Government is not interested in executing GST on most widely traded fuels such as petrol and diesel. In India, each state taxes the fuels differently. In Mumbai, VAT on petrol is higher compared to other states. Fuel rates will remain the same across the country if GST is imposed on fuels. In the end, the Central and State Governments tend to suffer big losses. The issue can be wisely addressed. Bringing diesel and petrol under GST is a good idea according to experts.

According to recent reports, Arun Jaitley, Finance Minister, said "Our government is planning to bring both fuels under the system of Goods and Services Tax. But the country's financial health gets impacted when the government makes a short-run interference. Let's assume that diesel is taxed at 12%, diesel rates will fall significantly. Even if diesel is taxed at 28%, the highest GST tax rate, the government will not be able to earn the required amount of revenues.

*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.