Diesel price in himachal pradesh | check latest diesel rates in himachal pradesh

The price of diesel that is charged at petrol pumps is the retail price of the fuel that we as consumers have to pay. Until 2017 diesel prices were updated every fortnight. Since June 2017,

however, India adopted the Dynamic Fuel Pricing policy, where the cost of diesel in India is revised every day. In India diesel rates are revised on a daily basis and the price change is

effected at 06:00 a.m. every day. This is the price of diesel that is reflected across petrol pumps in India, oil marketing company websites and apps. Price of fuel includes excise duty,

value added tax (VAT), and dealer commission. VAT varies from state to state. After adding excise duty, dealer commission and VAT, the retail selling price of diesel nearly doubles. When

international crude oil prices gain, prices in India move higher. Fuel price is more expensive in states with lower demand. “The dynamic fuel pricing policy offers several advantages to OMCs

as well as customers. For starters, any fluctuations in the global crude oil prices are immediately reflected in the daily revised prices. Moreover, the dynamic fuel pricing policy helps

the OMCs and petrol dealers across the country to better manage their equity capital as soon as there is a rise or dip in global crude oil prices or fluctuations in the USD to INR exchange

rate,” states the Bajaj Finserv website. Fuel prices are determined by state-owned Oil Marketing Companies like Bharat Petroleum, Indian Oil and Hindustan Petroleum and is overseen by PPAC

(Petroleum Planning and Analysis Cell) under the Ministry of Petroleum and Natural Gas. WHY IS DIESEL PRICE DIFFERENT FROM PETROL PRICE IN INDIA? In India, like many countries abroad, the

base price of diesel is much more expensive compares to petrol. Due to the differential taxation structure between the centre and the states, diesel prices in in India have always remained

much lower than that of petrol. Further, diesel has always been cheaper than petrol because it is used by farmers along with truck and bus fleets. Therefore, to reduce the burden on farmers

and the transport fleet operators, diesel price is kept lower than petrol in India. Globally however, diesel is the most expensive of the auto fuels as the product has higher cost of

production. “During the process of refining, crude oil is separated into different components and these components are converted through further treatments into gasoline, diesel fuel, and

other petroleum products. Diesel fuel is heavier and less volatile than gasoline, which makes it simpler to refine from crude oil. As a result, diesel tends to be cheaper than gasoline in

most countries around the world. However, the introduction of Ultra-Low Sulfur Diesel (ULSD) between 2006 and 2010 increased diesel production costs since ULSD requires more refining,”

states globalpetrolprices.com, as one of the reason why there is a difference in price. It added: “In contrast to gasoline, diesel fuel is used to power not only cars but also public

transportation vehicles, large delivery trucks, off road vehicles, boats, machinery, generators, etc. During periods of economic expansion industrial sector energy demand increases

significantly and diesel prices rise more than gasoline prices. If the demand for diesel fuel is higher, the price spread will widen.” WHAT ARE THE FACTORS IMPACTING DIESEL PRICE IN INDIA?

Here is a look at five factors that directly impact the price of diesel in India. * INTERNATIONAL PRICE OF CRUDE OIL: This is one of the most important factors that has a direct impact on

the petrol price. Crude oil is an international commodity and any change in its cost impacts domestic fuel prices like diesel in India. The price crude oil increases mainly due demand and

supply, geo-political relations and future supplies and reserves. * MORE DEMAND: As more people own vehicles, the demand for fuels like diesel has increased, which in turn means an increase

in the price of diesel. * SUPPLY AND DEMAND: Diesel is produced by processing crude oil, and this crude oil cost affects price of fuel like diesel in India. Oil refineries face problem of

the rising demand of diesel as the cost of crude oil is rising, which has resulted in less supply. * TAXES ON FUEL: Government policies that impose tax on fuels has a direct impact on the

price of diesel. To get the marginal returns and recover losses, oil companies revise the rate depending on the changing tax rates. * RUPEE AND DOLLAR: This another factor that has a big

impact Indian diesel price. Oil imported in India is traded in dollars. So, when the dollar strengthens against the Indian rupee, buying cost goes up, impacting diesel price. * REFINERY

CONSUMPTION RATIO: A low refinery ratio leads to lower quantity of petrol available for sale, thus increasing the cost of diesel. * LOGISTICS: If petrol and diesel have to be transported to

long distances to cities or areas away from depots, for these areas the price of fuel will be priced higher than the places nearer to the oil companies storage area. * SEASONAL, CLIMATE

CHANGES: When the season changes, that is the time usually oil refineries conduct maintenance activities. This ends up having some sort of impact on the production activities leading to

lesser supply and higher price. Extreme weather changes or natural calamities may also affect drilling and production activities which then leads to shortage in oil. HOW DIESEL PRICE IS

CALCULATED? The retail price of diesel is based on crude oil price, the OMC margin, transportation cost, freight costs, central government taxes, state government taxes, excise duty and few

other taxes. Here is how the retail price of petrol is calculated: The price at which the diesel dealers/distributors buy from OMCs + Excise duty + Dealer's Commission + VAT = Retail

price of petrol charged. Fuel prices in the country does not come under the Goods and Services Tax (GST) ambit. While excise duty is collected by the central government, VAT goes to the

state government. VAT is different in different states. * CRUDE OIL: India is one of the largest importers of crude oil. Crude oil is also the biggest component of the retail selling price

of diesel. Indian OMCs pay foreign crude oil companies addition charges along with the freight and insurance charges to purchase the crude oil. * OMC COSTS: Oil marketing companies refine

crude oil into diesel and then sell it to dealers. These companies sell diesel to dealers adding their own profit margin, which includes transportation cost, operational costs, refinery

processing cost etc. * VAT: VAT or value added tax on diesel varies from state to state, which is why petrol prices differ across different states and cities. * CENTRAL AND STATE TAXES: The

excise duty on diesel is the same across all states. Here’s a break-up of the taxes and levies that you pay on diesel * EXCISE DUTY: The excise duty on petrol is the same across all states.

* VAT: VAT on diesel varies from state to state. * DEALER COMMISSION: In August 2017, state oil companies had increased the commission for petrol pump dealers by up to 55% under a revised

formula that accounts for higher staff wages and, for the first time, the return on investment in land used for the filling station. The commission varies a little with the location of fuel

pumps. * RETAIL PRICE: After adding excise duty, dealer commission and VAT, the retail selling price of the diesel nearly doubles. Reasons why diesel price varies across countries * Currency

variations * Government subsidies * Government taxes, excise duty * Availability of crude oil * Market speculation * Government regulations INDUSTRY STAKEHOLDERS * OIL PRODUCTION AND

EXPLORATION CORPORATIONS: These companies produce oil in its crude form. The major participants include Crain India, Reliance Industries, ONGC and Oil India. Only 25% of the country’s oil

requirements is met through these companies and the rest through imports. * OMCS: Oil marketing companies manage everything from the stage of crude oil till the delivery of saleable fuel to

dealers. There are public and private sector companies such as Reliance Industries, Essar, Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Private Corporate. * DEALERS:

Owners of petrol bunks are called dealers who can be individuals or business entities. They sell petrol to end customers after adding their margins and local taxes. Here are some important

FAQs as per the PPAC website: 1. DOES DIESEL PRICE IN INDIA CHANGE ON A DAILY? Yes, petrol price in India changes on a daily basis at 6:00 AM. 2. WHY IS DIESEL PRICE DIFFERENT IN ALL THE

STATES OF INDIA? Fuel prices do not come under the ambit of GST. Do keep in mind that excise duty is collected by the central government and VAT is collected by state governments and is

added to their revenue. This VAT differs from state to state, and hence the difference in price across states. 3. HOW MANY OIL REFINERIES ARE THERE AND WHAT IS THE TOTAL REFINING CAPACITY OF

THE COUNTRY? According to PPAC, there are total 23 refineries in the country out of which Public Sector Undertakings (PSUs) -18 numbers, Joint Ventures (JVs)-2 numbers and Private Sector-3

numbers. Refining capacity in the country as on 01.11.2021 is 249.9 Million Metric Tonnes Per Annum (MMTPA). 4. HOW ARE PRICES OF MAJOR PETROLEUM PRODUCTS I.E. PETROL, DIESEL, PDS KEROSENE

AND DOMESTIC LPG ARE DECIDED? The prices of petrol and diesel have been made market determined by the Government effective from 26th June, 2010 and 19th October, 2014 respectively and since

then their prices are being decided by the Public Sector Oil Marketing Companies (OMCs) namely, Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum

Corporation Limited, in line with the changes in the international market prices and other market conditions. The Public Sector OMCs not only increase but also decrease the prices

accordingly. 5. WHAT ARE THE VARIOUS TYPES OF PETROL AND DIESEL AVAILABLE IN THE MARKET IN INDIA? Various nomenclatures are used for petrol as MS 93/95, Bharat Stage (BS) IV, Bharat Stage

(BS) VI, branded petrol (with additives) etc. Similarly various types of diesels can be named depending on the use/product as Light Diesel Oil (LDO), BS IV, BS VI, Bio Diesel, Branded Diesel

(with additives) etc. As of 01.04.2017, India requires on-road diesel and gasoline nation-wide to meet BSIV specifications and BS VI in the National Capital Territory of Delhi. 6. WHAT IS

HIGH SPEED DIESEL (HSD)? High speed diesel means any hydrocarbon oil in the range of C13-17 (excluding mineral colza oil and turpentine substitute) broadly by distillation & cracking of

crude oil which meets the requirements of Bureau of Indian Standards specification No IS-1460 and is suitable for use as fuel in compression ignition engines. It is primarily a middle

distillate with boiling point range at 160-400 Degree Celsius and density range of 820-845 Kg/m3 at 15 Degree Celsius. However for further details, please refer BIS specifications.