Today's Diesel Price in Uttar Pradesh

The daily revision is the new system of fuel pricing that has been implemented in India on 16 June 2017. According to the new system, all diesel bunks across the state will update diesel prices on a daily basis. Since all state-run oil marketing companies IOCL, BPCL etc have adopted the daily revision, diesel rates have seen a steady and constant growth. All automated diesel bunks will automatically revise diesel prices every day. All non-automated diesel bunks will manually revise.

Features of the daily revision

1. Prices will be revised on a daily basis at 06:00 a.m.
2. Diesel consumers will be aligned to market dynamics.
3. The system brings transparency in fuel pricing.
4. Bunk owners will be able to practice the best inventory management principles.
5. Neither the central government nor the state government will interfere in fuel pricing.

Computation of Diesel Prices in Uttar Pradesh

The actual cost of diesel per litre is computed using the following equation:

Retail price = Cost of crude oil + Refinery transfer price + Profit margin of oil marketing companies + Commission charged by dealers + Excise duty + State levies (VAT)+ pollution cess

Crude oil is imported by Indian oil entities. The cost that is incurred by Indian oil companies in order to buy crude oil is called the cost of crude oil. Ocean freight is also included in the cost of crude oil.

Refinery transfer price is the cost, which is incurred by oil marketing corporations to convert raw oil into diesel. It is charged by refineries.

Oil marketing companies then add a certain percentage of profit margin on the total of the cost of crude oil and refinery transfer price.

The refined diesel will then be shifted from refinery stations to retail diesel stations. Diesel bunk owners charge a certain percentage of commission for supplying diesel to end consumers.

Excise duty is the tax imposed by the central government on diesel. It will remain unchanged throughout the country.

Diesel is also taxed by state governments, but the percentage of tax differs from one state to another. The percentage of tax imposed on diesel in Maharashtra is comparatively high among all Indian states.

Factors Affecting Diesel Prices in Uttar Pradesh

The Cost of Diesel will increase if:

1. The cost of crude oil goes up in overseas markets
2. The currency of the United States of America (USA) gains against the currency of India
3. The central government decreases the excise duty
4. The state government decreases VAT

The Cost of Diesel will decrease if:

1. The cost of crude oil decreases in overseas markets
2. The currency of the United States of America (USA) falls against the currency of India
3. The central government increases the excise duty
4. The state government increases VAT
5. Factors affecting the cost of crude oil

The Cost of Crude Oil will increase if:

1. The demand for crude oil increases
2. Oil extraction activities are interrupted by unfavorable weather conditions
3. The INR weakens against the USD

The Cost of Crude Oil will decrease if

1. The demand for crude oil is stable
2. Oil extraction activities remain unaffected by weather conditions
3. The INR gains against the USD

Impact of GST on Diesel Prices in Uttar Pradesh

Present Scenario

1. All petroleum products are not covered under the GST regime.
2. The entire oil and natural gas industry has been kept outside the purview of GST.
3. All industry participants continue to pay taxes as per the earlier system.

If GST is Imposed on Diesel:

1. All industry participants have to follow the current and the GST framework.
2. The compliance cost will be increased by 100%.
3. The current price of diesel in Uttar Pradesh will fall by 20-30%.
4. Diesel consumers will be benefited.
5. The revenue source for the central and state governments is adversely impacted.

*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.