Today's Diesel Price in Rajasthan

Rajasthan has a huge multi-modal transportation system. The road transportation in the state is operated by the Rajasthan State Road Transport Corporation (MSRTC), which provides economical public road transport service. The state-run buses called State Transport (ST) are the preferred mode of transport for most of the people residing in various cities and districts in the state. Private transport in the state is composed of taxis, auto rickshaws and private vehicles.

With more population depending on road transportation and people in major cities such as Mumbai, Pune, Nagpur using private vehicles for their day-to-day use, the demand for diesel in Rajasthan is likely to be high.

Discussed below are the various factors that affect diesel rate in the state, the taxes levied by state and central governments on diesel, the daily revision of diesel prices in Rajasthan and other interesting facts about the fuel.

Factors Affecting Diesel Rate in Rajasthan

Diesel price in Rajasthan, just like in other Indian states, fluctuates on a daily basis. There are many components that factor into diesel pricing in India. While few of them affect diesel cost on a daily basis, others affect it once in a while.

Factors that affect diesel price on a daily basis are the international crude oil prices and the US dollar to Indian rupee currency exchange rate.

India imports 70% of its oil requirements from other countries. Hence, diesel prices in India are directly linked to the global crude oil prices. As the crude oil prices are volatile in nature and change every day, diesel prices in India are updated accordingly.

The second factor that impacts diesel price on daily basis is the currency exchange rate. As crude oil trade usually happens in US dollars, the daily fluctuating dollar value impacts diesel price.

Besides the daily impacting components, there are these other components such as the state and central government taxes, marketing costs, transportation costs, dealer's margins and commission and other operating costs that are factored into diesel pricing.

Among others, state level taxes affect the diesel price in Rajasthan. All the 29 states in India levy value added tax (VAT) on diesel. The tax rate varies from each states as the respective governments are free to decide the taxes. Hence, the tax levied by Rajasthan government makes the diesel price in the state different from other states.

Similar to state government, the central government also levies tax on diesel, called excise duty. The excise duty on diesel remains same across the states. Any revision in the tax would affect the diesel prices in all the states. The recent cut in the excise duty on petrol and diesel in October 2017, is one such move that affected the diesel prices in all the Indian states.

Other factors that marginally impact the diesel price include the profit margins, commission and other operating charges. Though these charges are relatively low, any revision in these may also impact the diesel price.

Note: The Diesel price in Jodhpur and remaining cities of Rajasthan are updated on dynamic fuel pricing.