In India with effective from June 15, 2017, Diesel prices are to be revised daily. Earlier, Diesel prices used to change every two weeks. Day by day Diesel costs revision is an excellent move to take for various reasons. The first and the most significant about the change in Diesel price is that it enables you to effectively understand the alterations in day by day diesel price in India. At the point when Diesel price is modified or changed every two weeks, there will be a big difference in the price, which puts the big burden on the customer.
|City||Today Price||Yesterday's Price|
|New Delhi||₹ 80.78||₹ 80.53|
|Kolkata||₹ 75.89||₹ 75.64|
|Mumbai||₹ 79.05||₹ 78.83|
|Chennai||₹ 77.91||₹ 77.72|
|Gurgaon||₹ 72.92||₹ 72.77|
|Noida||₹ 72.94||₹ 72.59|
|Bangalore||₹ 76.79||₹ 76.58|
|Bhubaneswar||₹ 78.87||₹ 78.74|
|Chandigarh||₹ 72.18||₹ 71.98|
|Hyderabad||₹ 78.92||₹ 78.69|
|Jaipur||₹ 81.43||₹ 81.26|
|Lucknow||₹ 72.70||₹ 72.35|
|Patna||₹ 77.63||₹ 77.40|
|Trivandrum||₹ 77.78||₹ 77.40|
|State List for Diesel Rates in India|
|Andaman & Nicobar||Andhra Pradesh||Arunachal Pradesh|
|Chhatisgarh||Dadra Nagarhaveli||Daman & Diu|
|Haryana||Himachal Pradesh||Jammu & Kashmir|
The oil marketing firms in India recently introduced the daily revision of diesel prices in India.
With the introduction of this rule in India, the price of diesel varies across India; there is a daily revision of retail fuel price in India.
The following are the major factors that affect the price of diesel in India
Cost of Crude Oil – The cost of crude oil is one of the major components which determines the diesel price across the globe. Worldwide demand and supply and economic conditions of crude oil determine the diesel prices. Low production rate, increase in international demand, and any political unrest in the crude oil producing countries of the world seriously affects diesel price.
Demand and Supply of Diesel Fuel – The fleet vehicles in the country mostly depends upon petrol. If the supply of petrol reduces as a result of refinery problem or lagging imports, diesel stocks may decline. If the transportation for the supply of diesel from one place to another place cannot support the flow of supplies, then the prices of diesel remain comparatively high. This affects the prices of diesel in India, which mainly depends on the export of diesel from foreign countries.
Tax Rates – The tax rates of diesel depends on the local government policies on imposing taxes on fuels. As and when the government of India raises the tax on fuels the oil companies will also increase the price of diesel in India to recover losses and to maintain the marginal profits in its oil business.
Rupee – The rupee-dollar exchange rate also acts as a factor which influences the diesel price in the country. Indian oil companies pay to the oil imported from other countries in terms of US dollars, but they incur expenses in terms of rupee. When the rupee value strengthens against the dollar and the price of the crude oil is declining, then the oil companies tend to gain and vice-versa.
Logistics – Logistics also acts as a factor which affects the pricing of the diesel in India. Diesel transported to longer distances to cities or regions farther from depots will be priced higher than the places nearer to the storage area of the oil companies. The difference may be huge between cities which are far from each other this is the reason behind the difference in prices of diesel in different cities across the country. For example, petrol price in Chennai is Rs. 66.84 per litre for January 24, 2018, and the same diesel price is Rs. 66.04 per litre in Kolkata.
Diesel which is one of the forms of fuel used to run vehicles like buses, boats, trains, barges. It is also used in machines like farm and construction equipment. Generally, diesel fuel is a mixture of hydrocarbons. Its boiling points are in the range between 150 – 380 degree Celsius.
Petroleum crude oil consists of hydrocarbons of three major classes such as:
Olefins or unsaturated hydrocarbons rarely occur in the crude and it should be noted that the terms paraffinic and naphthenic in modern chemistry are known by the name alkanes and cycloalkanes based on the respective groups of hydrocarbons.
Crude oil refining begins with heating up of the viscous liquid at more than 400 degree Celsius. This process will turn the liquid into a vapour state and then the vapour will enter the fractional distillation tower. As the vapour rises to a higher altitude, it starts to cool down. The vapour will reach a certain temperature point and the hydrocarbon chains within it will return to a liquid state. In the tower at different levels, the distillation plates will capture the liquids as it emerges.
The longest hydrocarbon chain will have a boiling point of more than 400 degree Celsius. As soon as the chain enters the distillation tower, it starts turning into liquid again. This emerges as bitumen and it exits at the bottom of the distillation tower. As the vapour rises, shorter hydrocarbon chains start to liquefy. The fuel oil will emerge when the vapour cools down below 370 degree Celsius. This process will continue until the upper portion of the tower with various distillates emerging as the vapour cools further.
When the vapour in the distillation tower reaches between 200 – 350 degree Celsius, diesel fuel begins to emerge. The vapour collects on the distillation plates wherein it will be siphoned off into a diesel holding tank.
The diesel prices in India were hiked today after a gap of seven days when the prices stayed firm, despite a dip in global crude rates following a rising number of cases across the world, diminishing the demand for oil globally.
The diesel rates in India were seen trading at Rs 80.78 per litre in New Delhi, Rs 75.89 per litre in Kolkata, Rs 79.05 per litre in Mumbai and Rs 77.91 per litre in Chennai.
In the international markets, Brent was recorded trading at $42.98 per barrel, down by 0.28% and West Texas Intermediate (WTI) was at $40.55 per barrel, down by 0.20%.
The global crude rates had witnessed a rise during today’s early trade session as both the U.S. crude benchmarks had shot up marginally owing to reduced drawdown from the U.S. stockpiles and deeper output cuts from OPEC and its member nations. But the rise in the crude rates was halted by the rising number of cases in America which has diminished the demand for oil in the international markets.
The WTI futures had shot up by 13 cents or 0.3% to touch $40.76 per barrel after recouping a 2-cent loss from Monday’s trade session. The crude benchmark – Brent also rose by 7 cents and added 0.7% gain yesterday.
The United States of America continues to post record number of cases for the first five days in July, with Florida alone confirming around 11,000 cases in a single day, marking the biggest reported one day case more than any of the European countries reported so far, heightening the level of crisis.
Meanwhile, a U.S. court on Monday has ordered to close down the Dakota Access pipeline, which is considered as the biggest artery of transporting crude oil from North Dakota’s Bakken Shale basin to Midwest and Gulf Coast regions following environmental concerns.7 July 2020
The diesel prices in India were steady despite posting mixed results in the international markets as optimism over economic recovery grows despite the mounting number of cases. The diesel rates in India were recorded trading at Rs 80.53 per litre in New Delhi, Rs 75.64 per litre in Kolkata, Rs 78.83 per litre in Mumbai and Rs 77.72 per litre in Chennai.
In the global scenario, Brent was recorded trading at $43.05 per barrel, up by 0.58% and West Texas Intermediate (WTI) was at $40.44 per barrel, down by 0.52%.
Both the U.S. crude benchmarks which were trading constantly for some time at around $30 per barrel, had crashed to below zero levels and traded at negative prices are showing signs of recovery as the demand for oil is improving despite the rally in the coronavirus cases in the U.S. which is the largest consumer of fuel in the world.
A note from ING reveals that the market seems to be shrugging off the mounting number of newly infected cases in America and added that several affected states in America did not show a significant reduction in the road traffic levels week on week basis.
Apart from this, a series of positive economic data about the revival of the economy has also lent support to the ailing oil markets which are struggling to get back to normalcy since the pandemic fears hit the global scenario, shrining the fuel demand.
The recent U.S. jobs report also uplifted the mood of the oil stocks and equities markets, prompting investors to go for riskier assets leading to rally in stock markets globally.
The Organization of the Petroleum Exporting Countries (OPEC) and its member's decision to go for deeper cuts to the tune of 9.7 million barrels are in effect throughout the July month as well.6 July 2020
The diesel prices in India were unmoved for the fifth straight day in a row despite falling oil prices in the overseas markets amidst rising cases which has cast a shadow over signs of economic revival. The diesel rates in India were spotted trading at Rs 80.53 per litre in New Delhi, Rs 75.64 per litre in Kolkata, Rs 78.83 per litre in Mumbai and Rs 77.72 per litre in Chennai.
In the overseas markets, Brent was recorded trading at $42.80 per barrel, down by 0.79% and West Texas Intermediate (WTI) traded at $40.32 per barrel, down by 0.81%.
The rise in the number of pandemic cases has pulled down the fuel prices in the global markets as oil fell below $43 per barrel during yesterday’s trade session rising concerns over the fuel demand which could stall sharply despite crude recorded weekly gain on lower supply and improved signs of economic recovery.
The strong U.S. jobs data for June has been shadowed by the alarming rise in the cases with California halting its plans to reopen the state from lockdown measures as it ordered to shut down bars and restaurants to contain the further spread of the pandemic.
Even India and China showed improvement in economic activities post reopening of the economy for June.
The efforts by OPEC and its member partners to uplift the fuel prices by trimming down the crude output to record lows helped to some extent. The OPEC’s oil production declined to its lowest in decades during June and even Russia’s oil production also dropped to near the OPEC+ target.4 July 2020
The diesel prices in India were unchanged for the fourth consecutive day in a row as the global fuel prices continue to decline following a rise in the pandemic cases globally hurting the demand for oil. The diesel rates in India traded at Rs 80.53 per litre in New Delhi, Rs 75.64 per litre in Kolkata, Rs 78.83 per litre in Mumbai and Rs 77.72 per litre in Chennai.
In the overseas markets, the crude benchmark – Brent was recorded trading at $42.86 per barrel, down by 0.65% and West Texas Intermediate (WTI) was at $40.39 per barrel, down by 0.64%.
The mounting number of cases post reopening of the economies has derailed the progress of recovery of oil demand. The crude rates which were on track with weekly gains are again witnessing fall in its prices over the last few days as fear strikes the oil industry over rising cases.
The United States of America alone reported over 50,000 cases consecutively for a record third straight day and even the California state reimpose lockdown norms and halted its earlier plans to reopen the state owing to rise in the new virus cases.
The stronger U.S. jobs data had uplifted the crude rates as both the U.S. oil benchmarks witnessed growth with Brent up by 4.3% and WTI up by 5.6% for the week.
The reopening of the economies across the world had uplifted the crude demand helping its prices to move up gradually as it traded constantly between $38 - $40 per barrel for many days after crashing to zero levels and trading at negative prices during late April 2020.
The efforts by OPEC and its member partners to revive the oil demand by agreeing for deeper cuts beginning from May till the end of July 2020 to the tune of 9.7 million barrels per day (bpd) had also uplifted the mood of the fuel rates.3 July 2020
The diesel prices in India are steady today despite a marginal fall in the crude rates in the international markets following reimposing of lockdown measures in California following a rise in epidemic cases. The diesel rates in India were recorded trading at Rs 80.53 per litre in New Delhi, Rs 75.64 per litre in Kolkata, Rs 78.83 per litre in Mumbai and Rs 77.72 per litre in Chennai.
In the international markets, Brent was recorded trading at $41.92 per barrel, down by 0.26% and West Texas Intermediate (WTI) was at $39.69 per barrel, down by 0.33%.
The mounting number of cases in the state of California has forced the local government authorities over there to reimpose lockdown restriction in the state as it rolled back its earlier plans to reopen the economy. Currently, the administrators have banned the opening of indoor restaurant dining services, bars and have beefed up social distancing norms followed by other measures to contain the spread of the pandemic which is rallying at a sharp rate.
Apart from many states in the United States of America, the pandemic cases are rising at an alarming rate in many parts of the world including India, which has deeply hurt the crude demand leading to falling in its prices.
Earlier, reports from the U.S. Energy Information Administration showed a decline in the U.S. crude inventories which declined by 7.2 million barrels after hitting a record high during last week and this had helped the oil prices to inch up slightly. Apart from this, refiners had also ramped up production and imports had eased marginally which drove oil rates to grow positively.2 July 2020
The diesel prices in India stood afloat despite edging up marginally in the overseas markets as hopes of recovery signs show up amidst rally in pandemic cases worldwide. The diesel rates in India were recorded trading at Rs 80.53 per litre in New Delhi, Rs 75.64 per litre in Kolkata, Rs 78.83 per litre in Mumbai and Rs 77.72 per litre in Chennai.
In the international scenario, Brent was recorded trading at $41.59 per barrel, up by 0.78% and West Texas Intermediate (WTI) was at $39.57 per barrel, up by 0.76%.
The fuel prices which were hiked regularly for over 20 straight days are constant since yesterday in India.
The uplifting of the stringent lockdown measures has mounted the number of pandemic cases in many parts of the world derailing hopes of a quicker economic revival.
But, the improvement in factory activity in China and a drawdown in the U.S. crude inventories indicate the signs of economic recovery has uplifted the mood of the ailing oil industry which is at loggerheads since the outbreak of epidemic began in early 2020.
Meanwhile, the U.S. crude and gasoline stocks declined more than expected last week as per the data from the American Petroleum Institute (API). Though the official data from the U.S. Energy Information Administration (EIA) is due to be released later today and this will give more clarity about the U.S. crude inventories buildup.1 July 2020
The diesel prices in India were unmoved during today’s trade session despite the depreciation of global crude rates owing to a spike in the number of coronavirus cases and diminishing demand for fuel in the international markets. The diesel rates in India were recorded trading at Rs 80.53 per litre in New Delhi, Rs 75.64 per litre in Kolkata, Rs 78.83 per litre in Mumbai and Rs 77.72 per litre in Chennai.
In the overseas markets, Brent was seen trading at $40.99 per barrel, down by 1.73% and West Texas Intermediate (WTI) was at $38.96 per barrel, down by 1.86%.
The record spike in the number of cases and the resulting death from the coronavirus pandemic has jolted the oil industry as it struggles to revive back to normalcy during the crisis time.
In America, the number of epidemic cases is continuing to rise mainly in Southern and Southwestern states forcing the local authorities there to reimpose travel restriction which in turn will diminish the usage of fuel.
Investors are looking for signs of demand recovery data which is due to be released later today from the American Petroleum Industry group and also from the U.S. government which is set to be released tomorrow.
A preliminary report from Reuters poll shows that analyst expects that the U.S. crude stockpiles declined from the record high which it managed to hit last week and inventories of gasoline declined for a third consecutive week.30 June 2020
The diesel prices in India is becoming expensive daily as the state-run oil marketing companies are hiking the prices of fuel continuously over the last 22 days, despite a drastic decline in crude rates in the overseas markets. The diesel rates in India were seen trading at Rs 80.53 per litre in New Delhi, Rs 75.64 per litre in Kolkata, Rs 78.83 per litre in Mumbai and Rs 77.72 per litre in Chennai.
In the global scenario, Brent stood trading at $41.02 per barrel, down by 0.07% and West Texas Intermediate (WTI) was at $38.49 per barrel, down by 0.59%.
The continued rally in the number of virus-related cases has shaken the oil industry again leading to falling in the oil prices during the second straight session today.
Globally, the number of pandemic cases has marched past 10 million number and this has prompted many of the governing bodies to reintroduce lockdown norms in some of the places to arrest the further spread of the cases.
The crude prices which once traded over $80 per barrel last year before the outbreak of virus-related cases are now trading at around $40 per barrel, which is half of its earlier prices.
Meanwhile, the diesel prices in the national capital have become expensive when compared with petrol leaving the consumers with a big hole in their pockets.
Despite best efforts from OPEC and its members to go in for deeper cuts in output production, the oil prices are taking a long time to return to normalcy as the demand factor continues to fade.
Meanwhile, the U.S. shale oil giant Chesapeake Energy Corp filed for bankruptcy protection yesterday after the oil firm bowed to heavy debt and the impact of the pandemic outbreak on the energy markets.
29 June 2020
The diesel prices in India become expensive as the state-run oil marketing companies are hiking its prices regularly despite fall in the global fuel prices amidst a surge in the pandemic cases globally hurting the demand for crude. The diesel rates in India were recorded trading at Rs 80.40 per litre in New Delhi, Rs 75.52 per litre in Kolkata, Rs 78.71 per litre in Mumbai and Rs 77.61 per litre in Chennai.
In the overseas markets, Brent was spotted trading at $41.02 per barrel, down by 0.07% and West Texas Intermediate (WTI) was at $38.49 per barrel, down by 0.59%.
Three of the populous states in the U.S. – Texas, California and Texas are witnessing a sharp rally in the number of cases which has cast a shadow over the reopening the state. Yesterday, Texas Governor Greg Abbott reversed his earlier decision on reopening the state and ordered to keep most of the bars to remain closed.
New cases continue to rise across many cities in the world diminishing hopes of a quick recovery of the global economy with analysts expecting that normalcy will occur after a long time.
In addition to this, the unexpected rise in the U.S. crude inventories has added further worries to the oil industry as the U.S. refiners are now operating at nearly 75% capacity as per the data from the government.
The best attempts by Organization of the Petroleum Exporting Countries to boost the prices by deeply trimming the output to record low volumes at 9.7 million barrels per day (bpd) has shown no signs of improvement.
A survey conducted by the Dallas Federal Reserve Bank on top U.S. oil and gas producing region found that more than half of the executives who had trimmed production output expect to resume some output by July end.27 June 2020
The diesel prices have become costlier in India following a rally in its prices continuously over the last two weeks amidst improving demand for crude in the global markets. The diesel rates in India are spotted trading at Rs 80.19 per litre in New Delhi, Rs 75.34 per litre in Kolkata, Rs 78.51 per litre in Mumbai and Rs 77.44 per litre in Chennai.
In the global scenario, Brent stood at $41.30 per barrel, up by 0.61% and West Texas Intermediate (WTI) was at $38.75 per barrel, up by 0.08%.
The crude prices which nose – dived to the lowest level in April and at one point traded in negative prices are showing signs of improvement following an increase in the demand for oil across the globe. The easing of lockdown restrictions helped the fuel prices to gain and currently, the U.S. contracts are trading at around $40 per barrel.
The surprise rise in the U.S. crude inventories had diminished the prices of oil in the international markets. For this week, both the U.S. crude benchmarks have witnessed a weekly decline of 1.8% and 2.2% respectively.
But the reopening of economies has boosted the requirement of fuel, pressurizing the prices to extend on a positive note. As per the reports from the location technology firm – TomTom, the traffic in Moscow city was back to last year’s level. The situation was similar in Shanghai city as well.
The outlook for global economic growth has worsened or has managed to be in the same line as it was during the last month, based on the economist’s poll reports of Reuters. It further noted that the recession was underway and is expected to be deeper than earlier expectations.26 June 2020