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Diesel Price in Kolkata (19th March 2024)

Today's diesel price in Kolkata stands at Rs. 90.76 per litre. No change recorded in diesel's price compared to yesterday. Over the past 10 days, fluctuations have been observed, with prices ranging between Rs. 92.76 and Rs. 90.76. You can also view today's diesel prices in other districts of West Bengal and compare them with the rates from the previous day, which already include state taxes.

Mar 19, 2024
₹ 90.76 ( ₹ 0.00 )

Last 10 Days Diesel Rate in Kolkata

Date Price Price Change
Mar 18, 2024 ₹ 90.76 0.00
Mar 17, 2024 ₹ 90.76 0.00
Mar 16, 2024 ₹ 90.76 0.00
Mar 15, 2024 ₹ 90.76 -2.00
Mar 14, 2024 ₹ 92.76 0.00
Mar 13, 2024 ₹ 92.76 0.00
Mar 12, 2024 ₹ 92.76 0.00
Mar 11, 2024 ₹ 92.76 0.00
Mar 10, 2024 ₹ 92.76 0.00
Mar 9, 2024 ₹ 92.76 0.00

Daily & Monthly Diesel Price in Kolkata : Graphical Representation

Historical Diesel Price in Kolkata

  • Diesel Rate in Kolkata, March 2024
  • Diesel Price
    1st March ₹ 92.76
    19th March ₹ 90.76
    Highest rate in March ₹ 92.76 ( March 1st )
    Lowest Rate in March ₹ 90.76 ( March 15th )
    Over all performance Falling
    % Change -2.16%
  • Diesel Rate in Kolkata, February 2024
  • Diesel Rate in Kolkata, January 2024
  • Diesel Rate in Kolkata, December 2023
  • Diesel Rate in Kolkata, November 2023
  • Diesel Rate in Kolkata, October 2023
  • Diesel Rate in Kolkata, September 2023

Prices of diesel in Kolkata is now going to change everyday, as against the earlier practice of changing prices every fortnight.

It is important to understand that arriving at everyday diesel prices was a complex procedure, as it involved taking into account daily movement of crude oil and also the currency rate fluctuations. This was one of the reasons why diesel prices were not revised everyday and were revised once in 15 days. However, now since the oil marketing companies are better equipped to handle the price change, we are seeing daily revision in prices. One does hope that we would see a regular change in diesel rates continuing in the city of Kolkata. Do read goodreturns.in for the daily diesel rates.

What do you mean by Dynamic Fuel Pricing?

As stated, the price of petrol and diesel is related to the global price of crude oil which varies every day due to multiple reasons. Through adopting this strategy of petrol or diesel pricing, oil companies are able to cover any losses as well as easily update the purchasers with the latest price. Under this process, oil companies consider the 15-day average crude oil rate and the rupee's exchange rate against the U.S. dollar to meet the final purchase price of diesel. In Kolkata, the current price of diesel or petrol may be either higher or lower than the previous one. The adjustment in pricing approach was meant to pass on to customers and gas pump owners make the benefit of even the slight update in oil prices. Under the former system of revising oil and diesel prices, each fortnight culminated in a rapid change in petrol costs that only had to be made at the end of a fortnight. This lead to falls on oil companies and consumers were unable to quickly reap the benefits of any downturn in prices.  

What are the factors that affects the diesel price of Kolkata?

Apart from the major factors such as the international crude oil price and the rupee-dollar exchange rate, there are many aspects which are included in the actual retail cost of petrol or diesel in a region. Certain elements include shipping costs, excise duties, the margin of the oil company, logistics and refining charges brought before settling at the specific fuel cost. Dealer fee is then included in the selling price of fuel and the taxes paid by the Center and the relevant state government. Although these factors remain unchanged, the two principal volatile variables are the price of crude oil and the rupee's exchange rate against the US dollar. Let's take a look at the key factors that affect the fuel price adjustment. 

Allocation and exigency: The Organisation of Petroleum Exporting Countries (OPEC) remains the leading distributor of crude oil on the international market over many centuries, thereby affecting the international prices of oil. OPEC's legislations are often affected by geopolitical evolution, so any constraint on any of the participating countries results in a scarcity of oil allocation. Oil prices are down when there are fears regarding future oil supply cuts. Similarly, a rise in oil demand from oil-consuming nations influences the fall of oil rates. 

Geopolitical conflicts: In the event of political crises, environmental catastrophes, and other political campaigns, crude oil prices have an effect on the market price of crude oil. Furthermore, disputes in oil-producing countries may lead to supply shortages and hence to rising oil prices.

Supply and reserve of crude oil: All oil-producing and oil-consuming countries store crude oil to keep their market safe. Oil is stocked when prices are falling and shipped to keep prices stable throughout the year.

Why the diesel rate of Kolkata is modified regularly?

The following are the various components that affect the Retail Selling Price of Diesel in Kolkata.

Price of crude oil: Crude oil is purchased by Indian oil marketers from global oil trading firms. Since it is transacted on foreign exchanges, the price is paid on USD, which is the standard exchange currency. To extract diesel, crude oil is then processed and refined. The price of crude oil, also known as the Refinery Transfer Price (RTP), is liable to freight costs and refining charges. The RTP is what paid by OMCs (Oil Marketing Companies), such as IOCL, BPCL & HPCL, to the refineries. The OMCs keep some margin and assign it to the Dealer (the operator of the petrol pump). 

Retail selling price: Kolkata’s retail selling price (RSP) is mainly affected by the cost of crude oil, currency exchange rate between US Dollar and Indian Rupee, and tax. The same factors is applicable for across the all the cities of India as well. But, on the other hand, the purchasing price of unrefined oil is influenced by seasonal variations, weather forecasts, international needs, global political movements, regional surpluses and deficits, and the currency exchange ratio.

Tax: In existence, the Central Excise Duty (foisted by the central government) and the VAT (Value Added Tax) are two distinct taxes. These duties are applied to the prices charged to the distributor of the oil bunk. And the price after the enforcement of the Central Excise and VAT, which ranges from state to state relates to the dealers' commission. 

 How the diesel rate is influenced by the Dynamic Fuel Pricing in Kolkata?

The "dynamic fuel pricing" method was launched in June 2017. This approach was designed to regularly change the price of diesel or petrol across the cities of India including Kolkata. Taking into account the currency exchange rate between the US dollar and the Indian Rupee and international crude oil, the daily price update is carried out.

After the system is enforced throughout the nation, all the metropolitan areas continue to adopt this framework including Kolkata for a regular disclosure of price revision. The main objectives of this system is to put clarity on the price of fuel so that the officials will not be able to restrict or abuse the OMC (oil marketing companies), as dynamic fuel pricing is introduced all over India, even Kolkata. Thus, by taking this framework into account dealers of fuel stations can also easily manage their wealth and capital. 

How to check the diesel price of Kolkata via SMS and Toll-free numbers? 

In comparison with older costs, Top Indian Oil Firms has evolved many methods to track daily diesel prices in Kolkata. Indian Oil Firms have given many methods to monitor the price of diesel at no hidden cost such as mobile apps, SMS facility and customer care service. To track the latest diesel price of Kolkata via SMS and toll-free numbers, just follow the simple steps listed below.

Via SMS: Type RSP DEALER CODE and send it to 9224992249

By dialling the below given toll-free numbers of the oil firms you can easily track the current diesel rate of Kolkata instantly from the comfort of your home or office.

Indian Oil- 1800 233 3555

Bharat Petroleum- 1800 22 4344

Hindustan Petroleum- 1800 233 3555

By following the dynamic fuel pricing mechanism since June 2017, oil firm are revising the diesel rate of Kolkata regularly across their mobile apps and websites. The prices of diesel in Kolkata are therefore dependent on the various factors of crude prices and import costs. Every city's rates will vary slightly due to various charges and fuel taxes in the state. 

Components which influences the diesel rates in Kolkata

The various components that affect the retail price of diesel in Kolkata are mentioned below.

Cost of crude oil- Crude oil is purchased by Indian oil traders from multinational oil trading firms. Since it is transacted on international markets, the price is always compensated in the USD, which is the normal financial exchange currency. To generate diesel, crude oil is then transported and refined. The crude oil is transported and refined to produce diesel. The price of crude oil, also known as the Refinery Transfer Price (RTP), is subject to price, freight costs and refining fees. This is the cost compensated by OMCs (Oil Marketing Companies), such as IOCL, BPCL & HPCL, to the refineries. OMCs maintain some margin and allocate it to the dealer of a particular filling station.

RSP- Considering a number of influences, the retail selling price (RSP) is estimated. The Indian Basket Crude Oil average price is determined every fortnight. This per barrel value is in dollars. Also, the value of Indian rupees relies on the average exchange rate of the fortnight.

Taxation- In existence, the Central Excise Duty (imposed by the central government) and the VAT (Value Added Tax) are 2 distinct taxes. The price charged to the distributor/owner of the petrol station is compensated by these fees. And the dealers' commission is affixed to the price after the imposition of the Central Excise and VAT, which differs from state to state. 

 The role and price of diesel in Kolkata

Diesel is an indispensable product for economic development. For efficiency, quality, and stability, it offers a wide range of functionality. The diesel also has excellent effectiveness of strength compared to other oils. Diesel is used everywhere, starting from shipping, warehousing and transport. After all, Kolkata is one of the major cities where diesel use is constantly expanding. As a large number of diesel-powered vehicles, manufacturing industries and engineering firms are increasing substantially, this leads to a strong demand for diesel in the city.

The process used to assess the price of diesel, the price breakdown of diesel and the factors impacting diesel prices need to be known to everyone like you from Kolkata. A retail or dynamic diesel user still needs to know whether or not the diesel rate is impacted by GST. Alright, let’s examine a look at the following related portions that will take you to the depths of both of these variables. By replacing the former adjustment of diesel pricing in which the price is revised every fortnight, the daily reform has now entered into effect as of June 2017.       

Why Do kolkata’s Diesel Prices Vary?

If the INR-USD conversion rate and the cost price of crude oil change, the diesel price in Kolkata will change. Because unrefined oil is traded globally, the value of the Indian currency relative to the price of the US currency has a significant impact. This conversion ratio is not regulated in the United States. It is vulnerable to a variety of forces, including fabrication cuts, domestic and international politics, and so on. If the Government of India raises the central levy, oil companies should raise fuel prices in Kolkata. In contrast, if the government lowers the central-level tax, they will lower fuel prices. Consumers pay approximately Rs 45 per product for testing, though the minimum fee for one lot is approximately Rs 200.

Why is diesel GST exempt?

From July 16, 2017, all goods and services transactions in India were subject to a new taxation regime known as the Goods and Services Tax (GST). However, five petroleum products were exempt from GST: crude oil, gasoline and diesel, natural gas, and aviation turbine fuel (ATF). The implementation of GST on the sale of gasoline and diesel was opposed by both the Centre and the states.

This is because the Centre would lose more than Rs.20,000 crore in input tax credit as a result of excise duty, whereas states want to keep their revenue pool intact in case of an emergency.

The total tax incidence of excise duty and VAT on petrol is approximately 45-50% and 35-40% on diesel, respectively, whereas the total tax incidence under GST is 28%, affecting both the Centre and the respective State's revenue. Furthermore, GST is charged as a percentage of the ex-factory price, which can have a significant impact on retail prices when refinery gate prices rise as a result of rising international crude oil prices, and vice versa. However, if diesel is subject to GST, the retail price of diesel will plummet dramatically, benefiting consumers the most.

What impact will GST have on diesel Prices in Kolkata?

As we all know, the Goods and Services Tax is an indirect tax that replaces previous taxes, and it is one of the most successful reforms. Many people are unaware that diesel and petrol are exempt from the GST. As a result, the GST system has no bearing on the current diesel rate in Kolkata. The inclusion of diesel will make fuel prices cheaper to end users, but both the Central Government of India and the State Government of Kolkata are likely to suffer losses. As a result, diesel is currently exempt from the GST tax structure.

How Does Dynamic Fuel Pricing Affect Diesel Prices in Kolkata?

The process of daily revising fuel prices based on the currency exchange rate of the Indian Rupee against the US Dollar and crude oil prices in international markets is known as dynamic fuel pricing. Because dynamic fuel pricing is used throughout the country, including Kolkata, the next step for this system would be to bring transparency to diesel rates.

The following are the advantages of developing a transparency methodology:

  • The government will have no influence over oil and marketing companies.
  • Customers can easily track changes in crude oil prices and the USD-INR exchange rate.
  • Fuel station dealers can easily manage their funds and resources.

What Are the Major Factors Affecting Diesel Prices?

Diesel rates are made up of several components, but the main ones are as follows:

  • The price of crude oil: Crude oil prices are always volatile. They differ depending on factors such as demand and supply, political stability in oil-producing countries, and so on. Natural disasters or political tensions, for example, can result in lower oil production levels and, as a result, higher oil prices due to increased demand. Because India imports the majority of its crude oil from other countries, diesel prices in India fluctuate in response to crude oil prices in international markets.
  • The USD/INR exchange rate is as follows: Crude oil is traded in USD around the world. When the value of the dollar rises, Indian companies must pay more money to purchase crude oil. This has an effect on diesel prices.

Other components include:

  • Freight charges: Despite being one of the world's largest oil consumers, India imports nearly 76% of its oil needs. The majority of the oil comes from OPEC countries such as Angola, Iraq, Iran, Indonesia, Kuwait, Malaysia, Nigeria, Saudi Arabia, the United Arab Emirates, and, more recently, the United States. These countries sell crude oil in USD, and India reimburses foreign oil companies for freight charges.
  • Refinery fees: The crude oil brought by OMCs is unrefined. They are sent to refineries to be processed in order to extract diesel and gasoline. These refineries are paid by the OMCs for each litre of diesel processed. These are known as refinery charges.
  • Profit margins at the oil company: State-owned oil companies such as Indian Oil Corporation, Hindustan Petroleum, and Bharat Petroleum dominate the oil market. These companies control more than 90% of the market.
  • These companies control more than 90% of the market. The remaining market shares are held by private players such as Reliance, Essar, Shell, and others. Before selling diesel to petrol pump dealers, these companies add marketing costs and profit margins to the price. They will frequently, but not always, revise their profit margins. Any change in profit margins will have an immediate impact on diesel prices.
  • The dealer's commission: The petrol pump dealers add their commission after purchasing diesel. The oil companies set this commission, which is revised on a regular basis.
  • Air ambience charges: The final retail selling price of diesel includes air ambience charges. Diesel prices vary from station to station, owing to differences in dealer commissions and other transportation costs.
  • Excise duty levied by the union government: The excise duty in India is levied by the union government and is the same in all states.
  • VAT, or value-added tax: The VAT, or value-added tax, is levied by the state and varies by state.

Diesel Price Calculation in Kolkata

We calculate the retail selling price of diesel based on a few cost elements, which are as follows:


Cost of Crude Oil

The first cost element in the diesel price structure is the cost of crude oil. The price paid for unrefined oil by oil marketing entities to transactional oil marketing entities, which includes freight charges.


RTP (Refinery Transfer Price)

The imported crude oil will be delivered to refineries, where it will be converted into diesel. Refinery transfer price is the price, which is charged by refineries for converting crude oil into diesel. Oil marketing companies are responsible for remitting it.


Profit margin of oil marketing companies

The profit margin of oil marketing companies is calculated by adding the cost of crude oil and the price of refinery transfer. As a result, the price quoted to dealers includes the cost of crude oil, the price of refinery transfer, and the profit margin of oil marketing companies.


Central and State Taxes

The central government levy on diesel is known as the central excise duty. The state government also taxes diesel.


Dealer commission

Dealers charge a percentage of the sale price of diesel to end users. The commission percentage may not be the same across the country.

To arrive at the final selling price of diesel in Kolkata, all of the aforementioned cost elements are added together.

Latest Updates on Diesel Price in Kolkata

Diesel Prices Hit New High In Kolkata

The prices of Diesel has reached the highest level in Kolkata. There is a continuous rise in the price of diesel not just in Kolkata but in the entire country. The main reason behind the surge in the prices of diesel is the surge in the prices of crude oil in the international market.

India depends on exports to fulfill the domestic requirements of fuel. Any impact on the prices of fuel at the global level is likely to affect the prices in the India domestic market as well.

Today’s diesel price in Kolkata is Rs 71.08 per liter, up by 0.19 paise from the previous day’s price. On January 1, 2018, the price of diesel per liter was recorded at Rs 62.36. The prices of diesel are up by almost 14% since January 1, 2018.

The rise in the prices of diesel will also trigger inflation rates in the country, which in turn will directly impact the economy of the country.

The strong dollar and declining rupee are also adding worry to the investors amidst the surge in the prices of the crude oil in the global market. There is a possibility that Indian rupee may further fall in the coming days and hit an all-time low or Rs 70 per US$1.

The rupee is down by more than 6% against U.S. dollar since the beginning of the year adding concerns over macroeconomic conditions.

24 May 2018

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