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Diesel Rate Today in India (Friday, Mar 24, 2023)

Mar 24, 2023
DIESEL Rate in Mumbai₹94.27 / litre

Major Cities diesel Rate Today (1 litre)

diesel Rate in India for Last 10 Days (1 litre)

  • DatePrice /LtrPrice Change
  • 2023-03-24₹94.27₹0.00
  • 2023-03-23₹94.27₹0.00
  • 2023-03-22₹94.27₹0.00
  • 2023-03-21₹94.27₹0.00
  • 2023-03-20₹94.27₹0.00
  • 2023-03-19₹94.27₹0.00
  • 2023-03-18₹94.27₹0.00
  • 2023-03-17₹94.27₹0.00
  • 2023-03-16₹94.27₹0.00
  • 2023-03-15₹94.27₹0.00
  • 2023-03-14₹94.27₹0.00


Diesel Facts

Diesel is a type of fuel that is used to power vehicles such as buses, boats, trains, barges, and several other transportation vehicles. It is also found in machines such as farm and construction equipment. Diesel fuel is a hydrocarbon mixture in general. Known for its efficiency and mileage, it is used to power motor vehicles and equipment with diesel engines or compression-ignition engines. Diesel prices in India are revised daily, since June 15, 2017. Earlier, diesel prices used to fluctuate every two weeks. The price for Diesel (per litre) today is ₹94.27.

Factors Affecting Diesel Prices

  • Cost of Crude Oil: The cost of crude oil is one of the major factors influencing diesel prices around the world. Diesel prices are determined by global demand, supply, and economic conditions for crude oil. Low production rates, increased international demand, and any political unrest in the world's crude oil-producing countries all have a significant impact on diesel prices.

  • Demand and Supply of Diesel Fuel: The majority of the country's fleet vehicles run on petrol. If the supply of petrol falls due to a refinery problem or lagging imports, diesel stocks may fall. If transportation for the supply of diesel from one location to another cannot support the flow of supplies, diesel prices will remain relatively high. This has an impact on diesel prices in India, which are primarily determined by diesel exports from other countries.

  • Tax Rates: Diesel tax rates are determined by local government policies regarding the imposition of fuel taxes. When the government of India raises fuel taxes, oil companies will raise the price of diesel in India to recover losses and maintain marginal profits in their oil business.

  • Political Unrest: Any geopolitical tension that affects oil production around the world or in oil-producing countries will have a direct impact on fuel prices.

  • Rupee- Dollar Exchange Rate: The rupee-dollar exchange rate is another factor that influences the country's diesel prices. Indian oil companies pay in US dollars for oil imported from other countries, but they incur expenses in rupees. When the rupee strengthens against the dollar while the price of crude oil falls, oil companies benefit, and vice versa.

  • Logistics: Logistics is another factor that influences diesel pricing in India. Diesel transported over longer distances to cities or regions further from depots would be more expensive than diesel transported to locations closer to the oil companies' storage areas. The difference in diesel prices in different cities across the country may be significant between cities that are geographically distant from one another.

Deregulation of Diesel Prices

Diesel prices in India were deregulated in October 2014, linking them directly to international market rates. Prior to deregulation, the government regulated diesel rates. The deregulation allows the market to determine diesel prices without any government intervention. This means that any change in global crude oil prices will have an immediate impact on retail diesel prices. Deregulation allows the government to spend less on subsidies in an attempt to close the price gap between the global and domestic markets. It also encourages healthy competition among oil companies, which will eventually benefit end users by allowing them to enjoy lower prices and better service delivery.

Components of Diesel Price in India

The components that make up the retail selling price of diesel are:

  • Cost of Crude Oil and Freight (C&F) charges
  • Refinery Transfer Price (RTP)
  • Price charged to dealers
  • Central and State Taxes
  • Dealer commission + other charges

Frequently Asked Questions (FAQs)

What is the price of diesel in India today?


Why is diesel cheaper than petrol?

Despite the fact that both diesel and petrol are derivatives of the same crude oil, the prices of both commodities vary in India. This is primarily due to the fact that state and federal taxes are levied differently on both products. Even the dealer's commission varies depending on the commodity.

What are the components of diesel price?

In addition to the basic price of the diesel, other components that would make up diesel price are the central and state government taxes, OMCs and dealer's profit margins and transportation charges.

Why is diesel price different in different states of India?

While the central excise duty is the same across all Indian states, the VAT varies by state. For example, the Delhi government levies 16.75% VAT, whereas Mumbai levies 24%.

Why does diesel price vary from one pump to another?

It is primarily due to the cost of transportation and the operation of the fuel station. The cost of transportation is lower if the petrol pump is close to the supply plant, so the pump charges a lower rate than other pumps located further away from the supply plant. In addition, the pump's operating costs, such as salaries, rent, and utilities, would influence diesel pricing at each petrol station. There is also a price difference between companies' pumps; for example, HP charges a different rate than its competitors IOCL and BP, and vice versa.

Who controls diesel prices in India?

Until October 2014, the Indian government regulated diesel prices. Diesel prices are now directly linked to international crude prices and are thus determined by the respective OMCs. Each OMC charges a different price for diesel based on the transportation and other charges included; it is then up to the dealer to add other costs involved in running the pump as well as supplying the fuel, which eventually adds up to the selling price of diesel.

Who are the major players in the petroleum and diesel industry?

More than 90% of petrol pumps in India are controlled by three oil marketing companies (OMCs): Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL). The government of India owns the majority of the shares in the three companies. Shell, Reliance, and Essar are among the other private players with a small market share.

What is a fuel surcharge?

When a credit or debit card is swiped, a percentage of the transaction is paid to the card's issuing company as transaction fees. The fee is typically 2-3% of the amount paid by the consumer and is typically absorbed by the merchant or store where the purchase is made. In the case of gasoline transactions, the fee should ideally be borne by the petrol pump dealers. However, because fuel businesses have low-profit margins, the transaction fee is passed on to consumers. As a result, the fee added on top of the actual fuel charge is known as the fuel surcharge. When you use a credit card to buy gas, you will be charged a fuel surcharge as well as the service tax levied on the surcharge.

What is a fuel surcharge waiver on debit cards?

In order to encourage digital payments following demonetisation, the government waived the fuel surcharge and asked banks to stop charging a surcharge on fuel transactions made with debit cards. According to the Reserve Bank of India's directive, the charge will not be borne by the pump dealers but will be recovered from the OMCs by the card issuing banks.