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Diesel Price in India (17th August 2022)

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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.

Today's Diesel Price in Indian Metro Cities & State Capitals

City Today Price Yesterday's Price
New Delhi ₹ 89.62 ₹ 89.62
Kolkata ₹ 92.76 ₹ 92.76
Mumbai ₹ 94.27 ₹ 94.27
Chennai ₹ 94.24 ₹ 94.24
Gurgaon ₹ 89.76 ₹ 89.76
Noida ₹ 89.82 ₹ 90.14
Bangalore ₹ 87.89 ₹ 87.89
Bhubaneswar ₹ 94.76 ₹ 94.76
Chandigarh ₹ 84.26 ₹ 84.26
Hyderabad ₹ 97.82 ₹ 97.82
Jaipur ₹ 93.72 ₹ 93.72
Lucknow ₹ 89.76 ₹ 89.76
Patna ₹ 94.86 ₹ 94.04
Trivandrum ₹ 96.52 ₹ 96.52

Factors affecting the price of Diesel in India

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.

About Diesel 

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: 

  • Naphthenic (cycloparaffinic)
  • Paraffinic
  • Aromatic Hydrocarbons

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.

Latest Updates on Diesel Price

Diesel Prices Stagnant in India

The diesel prices are stagnant in India despite a slump in the global crude rates as economic data spurred concerns about a potential global recession.

The diesel rates in India were seen at Rs 89.62 per litre in New Delhi; Rs 92.76 per litre in Kolkata; Rs 94.27 per litre in Mumbai and Rs 94.24 per litre in Chennai.

In the international markets, Brent was seen at $92.13 per barrel, down by 3.12% and West Texas Intermediate (WTI) at $86.12 per barrel, down by 3.68%.

The oil prices declined by over 3% during Tuesday’s trade session as they slid to their lowest level for the first time since Russia’s invasion of Ukraine. The poor economic data has spurred concerns over a potential global recession, as the markets await clarity on talks to revive a deal which could allow more oil from Iran for exports.

The European Union and the U.S. noted today that they were studying Iran’s response to what the EU has termed as its final proposal to save the 2015 nuclear deal after Tehran called on Washington to show flexibility.

Yesterday, Iran responded to the proposal but none of the parties involved in the matter provided any further details.

UBS analysts note that it is still unclear if Tehran has informed the EU last night, so some tricky items may get impacted due to the outcome of the nuclear deal.

16 August 2022
Diesel Prices Stagnant in India

The diesel prices are stagnant in India despite a fall in the oil prices in the international markets on expectations that the U.S. Gulf supply disruption will ease. The diesel rates in India were seen at Rs 89.62 per litre in New Delhi; Rs 92.76 per litre in Kolkata; Rs 94.27 per litre in Mumbai and Rs 94.24 per litre in Chennai.

In the overseas forum, Brent was seen at $98.15 per barrel, down by 1.46% and West Texas Intermediate (WTI) at $92.09 per barrel, down by 2.38%.

The crude prices slipped around 2% during Friday’s trade session on expectations that supply disruptions in the U.S. Gulf of Mexico will be for a short period, while recession fears clouded the crude demand outlook.

By the end of the day, crews were expected to replace a damaged oil pipeline piece, a Louisiana port official noted, allowing for the resumption of crude production at seven offshore U.S. Gulf of Mexico oil platforms.

Shell, one of the top U.S. Gulf of Mexico oil producers said on Thursday, that it has halted production at three deepwater platforms in the region. These three platforms are designed for outputting up to 410,000 barrels of crude per day combined.

An analyst from the Price Futures group notes that we are pulling back a little bit after the big run-up during yesterday’s trade session.

13 August 2022
Diesel Prices Constant in India

The diesel prices are constant in India despite a dip in the global crude rates on a cloudy demand outlook. The diesel rates in India were recorded at Rs 89.62 per litre in New Delhi; Rs 92.76 per litre in Kolkata; Rs 94.27 per litre in Mumbai and Rs 94.24 per litre in Chennai.

In the international markets, Brent traded at $99.03 per barrel, down by 0.57% and West Texas Intermediate (WTI) at $93.73 per barrel, down by 0.65%.

Today, the fuel prices slipped in Asia trade amidst an uncertain demand outlook, though benchmark contracts were headed for weekly gains as recession fears have calmed down.

The positive data on U.S. jobs has eased the fears of recession.

Yesterday, the Organization of the Petroleum Exporting Countries (OPEC) trimmed its forecast growth demand for fiscal 2022 by 260,000 barrels per day (bpd). It now expects the demand to rise by 3.1 million bpd for the year.

Uncertainty capped price gains as the market absorbed contrasting demand views from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA).

OPEC's statement is in contradiction to the view of the IEA, which has hiked its forecast for demand growth to 2.1 million bpd due to gas-to-oil switching in power generation as a result of a surge in gas prices.

12 August 2022
Diesel Prices Stable in India

The diesel prices are stable in India despite the rise in the crude rates in the international markets after the International Energy Agency (IEA) raised its demand growth outlook for fiscal 2022. The diesel rates in India traded at Rs 89.62 per litre in New Delhi; Rs 92.76 per litre in Kolkata; Rs 94.27 per litre in Mumbai and Rs 94.24 per litre in Chennai.

In the international markets, Brent was seen at $98.86 per barrel, up by 1.50% and West Texas Intermediate (WTI) at $93.54 per barrel, up by 1.75%.

The prices of both the crude benchmarks rose by over 1.50% during Thursday’s trade session as the International Energy Agency (IEA) hiked its oil demand growth forecast for this year as a surge in the gas prices forced few consumers to switch to oil.

The prices of natural gas and electricity have jumped to new highs, incentivizing gas-to-oil switching in a few nations. The Paris-based IEA noted in its monthly oil report, in it has hiked its outlook for 2022 demand by 380,000 barrels per day (bpd).

During last week, the rise in the U.S. oil inventories and the resumption of crude flows on the pipeline supplying central Europe capped the further rise in the prices.

Yet, the U.S. crude oil stockpiles surged by 5.5 million barrels during the most recent weeks, noted the U.S. Energy Information Administration, against the expectations of a rise of 73,000 barrels.

11 August 2022
Diesel Prices Static in India

The diesel prices are static in India despite a slide in the crude rates in the overseas markets ahead of the release of U.S. inflation expectations. The diesel rates in India stood at Rs 89.62 per litre in New Delhi; Rs 92.76 per litre in Kolkata; Rs 94.27 per litre in Mumbai and Rs 94.24 per litre in Chennai.

On the global platform, Brent was trading at $94.93 per barrel, down by 1.43% and West Texas Intermediate (WTI) at $89.20 per barrel, down by 1.44%.

The growing concerns about the global recession have weighed heavily on the oil futures. The U.S. oil refiners and pipeline operators expect the energy consumption to be robust during the second half of 2022, as per the reviews of the company’s earnings outlook seen by Reuters.

On the other hand, Russia’s pipeline monopoly Transneft noted that it plans to resume oil pumping through the southern branch of the Druzhba pipeline at 1600 Moscow time, Moscow’s state-owned news agency RIA reported.

Both the crude benchmarks slid by over 1% during Wednesday’s trade session as the U.S. crude oil stocks surged by around 2.2 million barrels for the week ended August 5, as per the markets sources citing figures from the American Petroleum Institute (API). An analyst from a Reuters poll forecasted that the crude inventories will rise by around 100,000 barrels.

10 August 2022
Diesel Prices Stable in India

The diesel prices are stable in India despite a fall in the global crude rates amidst the chance of Iran’s nuclear deal supply boost. The diesel rates in India were recorded at Rs 89.62 per litre in New Delhi; Rs 92.76 per litre in Kolkata; Rs 94.27 per litre in Mumbai and Rs 94.24 per litre in Chennai.

In the international forum, Brent was trading at $97.50 per barrel, up by 0.88% and West Texas Intermediate (WTI) at $91.47 per barrel, up by 0.78%.

On Monday, the European Union put forward its final text to revive the deal. One of the senior EU officials noted that a final decision on the proposal needs approval from the U.S. and Iran.

The oil markets are facing tightness at the moment owing to the ban on Russia’s crude imports following its invasion of Ukraine. Many western nations have imposed sanctions on Russia’s oil, tightening the fuel supply in the markets.

Last month, U.S. President – Joe Biden sought a hike in the output from the Organization of the Petroleum Exporting Countries (OPEC) to ease the fuel supply situation during his visit to the Middle East.

Brent had managed to hit $139 a barrel in March, close to its all-time high. On the other hand, the growing concerns of economic recession also weighed on the oil prices and their further demand.

In a bearish sign, China, the world’s largest fuel importer and consumer witnessed a drop in crude oil imports by 9.5% from a year earlier, customs data revealed.

9 August 2022
Diesel Prices Unmoved in India

The diesel prices are unmoved in India despite a rise in the global crude rates following strong economic data from the United States of America and China. The diesel rates in India were seen at Rs 89.62 per litre in New Delhi; Rs 92.76 per litre in Kolkata; Rs 94.27 per litre in Mumbai and Rs 94.33 per litre in Chennai.

In the international markets, Brent was seen at $96.06 per barrel, up by 1.20% and West Texas Intermediate (WTI) at $90.11 per barrel, up by 1.24%.

The crude prices rose over 1% during today’s trade session after hovering at lower levels in the recent past on positive economic data from the United States of America and China. The robust jobs data from America has renewed hopes of an improved fuel demand outlook.

Since the onset of the pandemic crisis, oil prices are witnessing volatility on fears of weak fuel demand and the growing fears of recession have also weighed on the crude prices.

The worries over recession have dented the energy demand as it pushed the front month Brent prices to slide by 13.7%, to their lowest since February. This was the biggest fall in the crude benchmark – Brent since April 2020 and WTI shed 9.7%.

The prices of both contracts recouped some losses following robust jobs data growth in the United States of America. With this, America’s crude demand is likely to accelerate in July, America is one of the world’s top crude consumers.

Yesterday, China surprised markets with its faster-than-expected growth in exports. The dragon country is the biggest importer of fuel globally. The nation purchased 8.79 million barrels per day (bpd) of crude during July, up from a four-year low in June. Yet the import of fuel was 9.5% less than a year earlier, as per the data from the customs data.

8 August 2022
Diesel Prices Unmoved in India

The diesel prices are unmoved in India as Saudi Arabia hikes September’s crude prices to record high levels. The diesel rates in India stood at Rs 89.62 per litre in New Delhi; Rs 92.76 per litre in Kolkata; Rs 94.27 per litre in Mumbai and Rs 94.24 per litre in Chennai.

In the international markets, Brent was trading at $94.62 per barrel and West Texas Intermediate (WTI) at $89.02 per barrel.

Saudi Arabia, one of the top producers of fuel globally has hiked the September crude oil rates for Asian buyers to record high levels despite declining refining margins.

Saudi Arabia is one of the members of the Organization of the Petroleum Exporting Countries (OPEC) and its member partners including Russia. Now, the official selling price (OSP) for September loading for Arab Light to Asia was hiked by 50 cents per barrel from August to $9.80 a barrel over Oman/Dubai quotes, states oil producer Saudi Aramco.

Though the price hike is less than the market expectations of 70 cents to $1 per barrel.

Meanwhile, the spread between the WTI and Brent has contracted to $6.55 per barrel on Thursday. This level was seen last April. The situation has made the Brent–linked grades more attractive to Asian buyers and put pressure on regional grades.

6 August 2022
Diesel Prices Unchanged in India

The diesel prices are unchanged in India despite gains in the global crude rates amidst tight crude supply. The diesel rates in India were seen at Rs 89.62 per litre in New Delhi; Rs 92.76 per litre in Kolkata; Rs 94.27 per litre in Mumbai and Rs 94.24 per litre in Chennai.

In the global scenario, Brent was trading at $96.95 per barrel, up by 0.18% and West Texas Intermediate (WTI) at $90.98 per barrel, up by 0.35%.

The Organization of the Petroleum Exporting Countries (OPEC) and its members including Russia have been increasing output previously but have struggled to meet their set targets as most of the oil producers have already exhausted their potential. For now, the oil producers club have agreed to increase the production by 100,000 barrels per day (bpd) in September, far lower than previous production hikes.

Yesterday, the oil prices rose as supply concerns triggered a rebound in the prices from multi-month lows. Brent and WTI witnessed a decline to their weakest levels since February during the previous session after the U.S. data revealed that crude and gasoline stockpiles unexpectedly jumped last week.

Last month, U.S. President – Joe Biden visited the Middle East nation – Saudi Arabia and asked the group to boost the crude output to help the struggling oil market as it is facing a supply crunch.

But Saudi Arabia was reluctant to beef up the production at the expense of Russia, which is facing sanctions from several nations following its invasion of Ukraine.

The ban on Russia’s crude imports has tightened the crude supply in the oil markets.

4 August 2022
Diesel Prices Uniform in India

The diesel prices are uniform in India despite a fall in the global crude rates as global recession fears diminish fuel outlook demand. The diesel rates in India were seen at Rs 89.62 per litre in New Delhi; Rs 92.76 per litre in Kolkata; Rs 94.27 per litre in Mumbai and Rs 94.24 per litre in Chennai.

In the global markets, Brent was seen at $100 per barrel, down by 0.50% and West Texas Intermediate (WTI) at $94.03 per barrel, down by 0.41%.

The members of the Organization of the Petroleum Exporting Countries (OPEC) including Russia will be meeting today. Sources close to Reuters reveal that the oil producers club are likely to keep the output unchanged for September or may raise it slightly.

Meanwhile, Saudi Arabia, the top oil producer noted that it may be reluctant to beef up the output at the expense of its OPEC partner Russia which is facing sanctions from several western nations following its invasion of Ukraine.

The oil prices slipped in the overseas markets during today’s early trade session ahead of the meeting of the Organization of the Petroleum Exporting Countries (OPEC+) members amidst fears of a slowdown in global growth. The current situation of the slow growth of manufacturing activities is likely to dent the demand for oil in the coming months.

A robust dollar, bolstered by the comments from the U.S. Federal Reserve Chairman – Jerome Powell hinted at more interest rates in the coming days aimed to cool inflation rates. Apart from this, the firmer greenback also made oil more expensive for the holder of other countries' currencies.

3 August 2022

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