Today's Diesel Price in Telangana

How are Diesel Costs Revised in Telangana?

Like other commodities, the diesel price is also revised. Global crude oil rates and the exchange rate are taken into consideration to revise the price. Currently, all oil marketing companies (OMCs) in India have been using the dynamic fuel pricing system, which was introduced in June 2017. What is dynamic fuel pricing? It is a fuel pricing mechanism to revise F uel Rates (Petrol Rates and Diesel Rates) on a daily basis in sync with crude oil rates and the exchange rate.

Be advised to check the current diesel price in Telangana since it is varying every day since 16 June 2017. All state-run oil marketing companies - Bharat Petroleum, Hindustan Petroleum and Indian Oil - have been using dynamic fuel pricing that aligns consumers to market dynamics. It means consumers will pay the price, which is determined based on the fluctuations in the determinants. The system assures 100% transparency as far as fuel pricing is concerned.

Components of Diesel Costs in Telangana

The following are the components of Diesel Rates in Telangana:

1. The cost of crude oil is paid by OMCs.
2. Refinery Transfer Price (RTP) is charged by refineries.
3. Diesel is taxed by the state and central governments.
4. OMCs add their profit margin to the total overheads incurred by them.
5. Dealers charge commission for supplying the fuel to end customers.

Influencers of Diesel Price in Telangana

More than 50% of the retail selling price goes towards the central and state taxes. In October 2017, the excise duty on diesel was decreased to Rs.15.33 per litre from 17.33 per litre. In the same month, the local tax was reduced by Maharashtra, Gujarat, Madhya Pradesh and Uttarkhand. So, the revision of taxes affect the fuel price. The exchange rate of INR/USD is another influencer. This currency pair is highly fickle in nature. The value of the INR against the USD impacts the crude oil prices that in turn affect diesel prices in Telangana. The crude oil price is the biggest influencer.

The Reserve Bank of India fixes the exchange rate of the INR/USD currency pair. The most common influencers of the exchange rate consist of interest rate parity, interest rates, balance of payment, inflation rate, import and export ratio and the overall debt. When the INR gains against the USD, then the cost of crude oil will be cheaper. When the INR falls against the USD, then the cost of crude oil will increase. The influencers of crude oil prices include global political movements, the demand for oil, reserves, and weather conditions in oil producing countries.

Does GST Impact Diesel Price in Telangana?

GST does not affect diesel prices in Telangana as diesel does not fall under the purview of GST, which has been imposed on various types of commodities and goods. Currently, the GST rates have fixed at 5%, 12%, 18% and 28%. The compliance cost for industry stakeholders will be doubled if GST is imposed on diesel.

*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.