Today's Diesel Price in Uttarakhand

During the first fifteen days of March 2018, diesel retailed with an average price of Rs.63.30 a litre in Dehradun, the capital city. In January 2018 and February 2018, diesel prices were Rs.60.79 a litre and Rs.64.56 a litre respectively in the city. In Rishikesh, the diesel price was above Rs.63.50 a litre in March 2018. In January, February and March 2018, the prices were Rs.60.79 a litre, Rs.64.56 a litre and Rs.62.97 a litre respectively. In Haridwar, the diesel price was Rs.57.01 a litre, which is low compared to Dehradun and Rishikesh.

Dynamic Fuel Pricing vs Current Diesel Rates in Uttarakhand

Dynamic fuel pricing is a major event in the fuel retailing segment in India. It was deployed by oil enterprises like Indian Oil, Hindustan Petroleum and Bharat Petroleum last year after executing a 40-day pilot in four towns. It has been deployed in the country to bring transparency in the pricing and revision of fuel rates. Instead of revising fuel rates twice a month, under the dynamic fuel pricing concept, the revision of diesel prices in Uttarakhand will be done each day at 06:00 a.m.

The daily price revision approach is beneficial to industry participants, including users, oil companies, dealers and the government. If the cost of crude oil dampens today, it will be reflected in the RSP quickly. Fuel consumers do not have to wait for fifteen days to experience changes. Oil companies are benefited from dynamic fuel pricing in several ways. They will be able to monitor their inventories or stock effectively and reduce the capital required to run the business.

Obtain Today's Diesel Price in Uttarakhand

Diesel users in Uttarakhand will be able to obtain the current diesel price in all cities of the state through mobile applications. Indian Oil Corporations Limited has launched Fuel@IOC. This mobile application can be accessed through all devices. Hindustan Petroleum Corporation Limited has launched My HPCL. The name of the mobile application designed by Bharat Petroleum Corporation Limited is SmartDrive. All these mobile applications offer excellent features to end customers. Fuel consumers can also make use of SMS services.

Assessment of Diesel Cost in Uttarakhand

1. Step 1: We compute the cost of crude oil by multiplying the cost of crude oil per barrel by the USD/INR exchange rate. The cost of a litre of crude oil will be Rs.26.42 a litre as of 3 February 2018.

1. Step 2: The expenses spent by OMCs are computed. It will be Rs.8.30 a litre according to recent reports. Oil companies incur various types of expenses, including entry levies, import duties, freight charges etc.

1. Step 3: The excise duty is levied at the basic cost of crude. It will be Rs.15.33 a litre as of 3 February 2018 in Uttarakhand. The entire country is equally taxed.

1. Step 4: A dealer commission of Rs.2.51 will be levied on diesel per litre. After the dealer's commission, the cost of fuel works to be Rs.52.12 a litre.

1. Step 5: In Uttarakhand, Value-added Tax (VAT) is levied at 19.93%. Therefore, 19.93% of Rs.52.12 works to be Rs.10.38.

RSP of diesel price per litre in Uttarakhand = Crude oil costs + OMC expenses + central taxes + dealer's commission + VAT

Forces Influencing Diesel Price in Uttarakhand

The exchange rate is the largest influencer. The cost of crude oil will vary if there is a change in the USD/INR exchange rate. It will be decided on a daily basis in sync with inflation rates, bank interest rates, the Gross Domestic Product (GDP). Any variations in the demand and supply of crude oil, the operational efficiency of oil-extracting entities, the domestic and international political events will affect the cost of unrefined oil, which in turn affects the current diesel price in Uttarakhand.

Taxes vs Today's Diesel Price in Uttarakhand

In India, diesel is taxed at the central and state levels. The central and state levies may be changed anytime. The central tax on diesel was cut by Rs.2 a litre in October 2017. It was revised recently in February 2018. The revision of the state and central taxes will affect today's diesel rate in Uttarakhand. Similarly, the imposition of Value-added Tax directly affects the RSP of the fuel as well.

GST vs Current Diesel Rate in Uttarakhand

Currently, diesel prices in Uttarakhand will remain unaffected by the Goods and Services Tax (GST). It is an indirect tax form and is levied at each value addition. The central levy for diesel and petrol is 23%. The total tax will be 57%. If diesel is brought under the GST regime, the maximum tax rate applicable is 28% only. At 28%, the cost of diesel per litre in the state will slide by 50%. The public will be benefited from this move, but not the government. Therefore, diesel is outside the regime of the Goods and Services Tax.

*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.