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Diesel Price in India (5th December 2020)

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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 ₹ 73.32 ₹ 73.07
Kolkata ₹ 76.89 ₹ 76.64
Mumbai ₹ 79.93 ₹ 79.66
Chennai ₹ 78.69 ₹ 78.54
Gurgaon ₹ 73.52 ₹ 73.47
Noida ₹ 73.71 ₹ 73.45
Bangalore ₹ 77.73 ₹ 77.46
Bhubaneswar ₹ 80.33 ₹ 79.41
Chandigarh ₹ 73.06 ₹ 72.81
Hyderabad ₹ 80.00 ₹ 79.73
Jaipur ₹ 83.10 ₹ 82.18
Lucknow ₹ 73.51 ₹ 73.60
Patna ₹ 78.71 ₹ 78.49
Trivandrum ₹ 79.31 ₹ 78.58

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 Gains in India

The diesel prices gained in India following trends from the overseas markets as OPEC and its allies agree for compromising on the supply deal.

The diesel rates in India traded at Rs 73.07 per litre in New Delhi, Rs 76.64 per litre in Kolkata, Rs 79.66 per litre in Mumbai and Rs 78.54 per litre in Chennai.

In the international platform, Brent traded at $49.16 per barrel, up by 0.92%; West Texas Intermediate (WTI) at $46.06 per barrel, up by 0.92%.

The oil futures rose today and are trading just under $50 per barrel in the overseas markets as major oil producers have agreed to compromise in increasing the output slightly from January 2021. But the members are continuing the bulk of existing supply curbs to cope with the diminished fuel demand amidst the second wave of coronavirus.

The Organization of the Petroleum Exporting Countries (OPEC) and its partner – Russia have agreed to ease deep fuel output trimming from January 2021 to the tune of 500,000 barrels per day (bpd). Going on a further yet undefined increase will be made monthly as the members have failed to reach a compromise on a broader policy for fiscal 2021.

Both the U.S. crude benchmarks are to record their fifth consecutive weekly gains.

Earlier the group had agreed to ease crude output supply by 2 million bpd starting from January 2021.

Meanwhile, a bipartisan coronavirus aid of $908 billion gained momentum in the U.S. Congress supporting the oil prices to extend gains.

4 December 2020
Diesel Prices Rallies in India

The diesel prices in India rallied despite a drop in the global fuel rates as OPEC+ members resume talks to decide the future of crude supply. The diesel rates in India spotted trading at Rs 72.84 per litre in New Delhi, Rs 76.41 per litre in Kolkata, Rs 79.42 per litre in Mumbai and Rs 78.24 per litre in Chennai.

In the overseas markets, Brent traded at $47.89 per barrel, down by 0.75%; West Texas Intermediate (WTI) at $44.86 per barrel, down by 0.93%.

The oil producers club had postponed the meeting from Tuesday to Thursday as all the members were yet to meet a consensus over the supply deal beginning from January 2021. The meeting witnessed locking of horns between Saudi Arabia and Russia over the need to extend the output cuts set in place during the first wave of the virus.

Analyst note that the market is cautious. The ongoing negotiations within the OPEC are not smooth as expected thus the oil prices are witnessing a drop over the last few days.

The announcements by the pharma companies on the clinical trial results of the vaccine had generated hopes of a quick revival of economy and improved fuel demand.

But the weak fuel demand amidst the second wave of the pandemic has prompted the oil producers club to decide on the future of global crude output beginning from January 2021.

Hopes of fuel demand revival improved after the announcement of vaccine supported the rally in the oil prices.

Meanwhile, the U.S. crude inventories also declined to uplift the mood of the oil markets. The crude stocks fell by 679,000 barrels in the week to November 27 as against the Reuters poll analysis of a decline of 2.4 million barrels.

3 December 2020
Diesel Rates in India Remains Flat

The diesel rates in India remained flat despite a slight fall in the global fuel prices amidst delay in the OPEC+ meeting and unexpected rise in the U.S. crude stockpiles. The diesel prices in India spotted trading at Rs 72.65 per litre in New Delhi, Rs 76.22 per litre in Kolkata, Rs 79.22 per litre in Mumbai and Rs 78.06 per litre in Chennai.

In the overseas platform, Brent stood at $47.21 per barrel, down by 0.44%; West Texas Intermediate (WTI) at $44.32 per barrel, down by 0.52%.

The surprise build in the U.S. crude inventories and delay in the future crude output decision by the OPEC has led the oil to extend losses during today’s trade session.

The OPEC and its members have delayed their formal meeting to Thursday, as they are yet to decide whether to increase the output beginning from January 2021 or not.
Both the crude benchmarks have declined marginally during today’s trade session.

The oil producers group had agreed to ease the crude supply to the tune of 2 million barrels per day (bpd) beginning from January 2021, hoping for an improvement in fuel demand globally. But the second wave of the pandemic crisis has fractured hopes of improved oil demand.

The mounting pandemic cases have pressurized the oil producers club as they are likely to roll back reductions over January – March 2021.

The unexpected rise in the U.S. crude inventories as per the data from the American Petroleum Institute (API) has led to a fall in the oil prices in the global markets. The reports from API showed that the U.S. crude inventories gained by 4.1 million barrels during last week as against the analyst’s expectations of a fall of 2.4 million barrels.

2 December 2020
Diesel Prices Firm in India

The diesel prices traded firm in India following global trends as OPEC+ allies are delaying the decision on crude supply beginning from January 2021. The diesel rates in India traded at Rs 72.42 per litre in New Delhi, Rs 75.99 per litre in Kolkata, Rs 78.97 per litre in Mumbai and Rs 77.84 per litre in Chennai.

In the overseas markets, Brent stood at $47.73 per barrel; West Texas Intermediate (WTI) at $45.08 per barrel.

Currently, the members of the OPEC have delayed their talks on next year’s crude output policy to Thursday from Today. Sources reveal that the prominent players including Saudi Arabia, are yet to agree on the final decision.

The move by the OPEC has kept the fuel prices to trade stable during today’s trade session.

With weak fuel demand, the OPEC+ is considering to extend the existing cuts well into fiscal 2021 for the first few months and the proposal is being backed by the oil de facto leader – Saudi Arabia. Russia, on the other hand, is backing for a gradual increase.

The outbreak of the pandemic crisis has curtailed the fuel demand since March 2020. At one point the fuel prices crashed to zero levels and traded in negative points forcing OPEC and its allies to go for deeper cuts since May 2020.

The recent news of the vaccine had helped both the crude contracts to gain 27% during November.

Analysts expect that the crude benchmark – Brent is likely to touch around $43.95 per barrel by next year.

1 December 2020
Diesel Prices Consistent in India

The diesel prices traded consistently in India despite a fall in the overseas crude rates amidst likely decision by OPEC and partners to delay easing crude supply deal. The diesel rates in India recorded at Rs 72.42 per litre in New Delhi, Rs 75.99 per litre in Kolkata, Rs 78.97 per litre in Mumbai and Rs 77.84 per litre in Chennai.

In the international scenario, Brent traded at $47.60 per barrel, down by 1.20%; West Texas Intermediate (WTI) at $44.92 per barrel, down by 1.34%.

The crude rates witnessed a strong rally over the last few days is again showing declining trend owing to the possible delay in output supply to the markets by OPEC and its member partners. Earlier, the oil producers club had agreed to pump in around 2 million barrels per day (bpd) of fuel to the markets beginning from January 1, 2021.

The recent news about the vaccine had helped the crude benchmarks to get around 7% over the last week. But scientists across the world are questioning the trial results of the AstraZeneca’s drug to cure the coronavirus.

So far, three of the pharma companies – Pfizer, Moderna and AstraZeneca have announced positive clinical trial results aimed to prevent coronavirus.

The outbreak of the pandemic crisis has diminished fuel demand across the world, weighing on its prices to dip. The revival of the economy owing to discover of vaccine has uplifted the mood of the equities and oil markets.

The ramp up in the crude output by Libya since the beginning of September has posed challenge for OPEC amidst ongoing second wave of pandemic crisis.

30 November 2020
Diesel Prices Scales Up in India

The diesel prices scaled up in India despite witnessing mixed results of crude rates in the overseas markets as oil prices are set for fourth weekly gain following positive results of vaccine. The diesel rates in India stood at Rs 72.13 per litre in New Delhi, Rs 75.70 per litre in Kolkata, Rs 78.66 per litre in Mumbai and Rs 77.57 per litre in Chennai.

In the global platform, Brent stood at $48.18 per barrel, up by 0.79%; West Texas Intermediate (WTI) at $45.52 per barrel, down by 0.42%.

The encouraging news about the vaccine to cure the pandemic had helped the rally of the oil prices. Both the crude benchmarks gained over 7% over the week. So far, three pharma companies have announced positive clinical trial results aimed to cure the pandemic.

But the AstraZeneca’s claim of vaccine for the world has raised questions over the effectiveness of clinical trial results.  

Meanwhile, sources close to the OPEC reveal that most of the member nations are favoring to delay the easing of crude supply to markets amidst muted fuel demand. The rise in the pandemic cases globally had forced for reimposition of lockdown norms in several places, weighing on the fuel prices to shrink.

Earlier, the oil producers club had plans to ease the crude supply to the tune of 2 million barrels per day (bpd) beginning from January 2021 hoping of improved fuel demand post reopening of the economy. But the second wave of pandemic shrunk the oil demand and weighed on the fuel prices to decline sharply.

29 November 2020
Diesel Prices Rises in India

The diesel prices were raised in India despite mixed reactions of the U.S. crude benchmarks in the overseas markets ahead of the OPEC meeting. The diesel rates in India traded at Rs 71.86 per litre in New Delhi, Rs 75.43 per litre in Kolkata, Rs 78.38 per litre in Mumbai and Rs 77.30 per litre in Chennai.

In the international platform, Brent spotted at $48.00 per barrel, up by 0.42%; West Texas Intermediate (WTI) at $45.27 per barrel, down by 0.96%.

The oil prices are set for weekly gain ahead of the OPEC meeting as it will occur early next week. The crude rates remained on course to record fourth straight weekly rise as optimism over delay in output supply grows, weighing on the fuel prices to scale up.

Both the crude benchmarks have risen sharply since the announcement of positive clinical trial results by three pharma companies. The hopes of a revival of the oil industry led to the rise in the fuel prices.

Sources close to the oil producers club have revealed that the OPEC and its member partners including Russia are supporting for the delay in the next year’s increase in output to the tune of 2 million barrels per day (bpd) beginning from January 2021.

The output volume accounts to around 2% of the global consumption. OPEC+ members are due to meet from Monday for two days to decide on the future of the global crude supply.

Meanwhile, the increased output production from Libya is posing a big challenge for OPEC. The country is exempt from the OPEC deal and so far, has managed to pump in over 1.1 million bpd of oil since early September.

 

27 November 2020
Diesel Prices Marches Up in India

The diesel prices marched up in India despite a slip in the overseas fuel rates amidst signs of oversupply issue. The diesel rates in India stood at Rs 71.62 per litre in New Delhi, Rs 78.12 per litre in Mumbai, Rs 75.19 per litre in Kolkata and Rs 77.08 per litre in Chennai.

In the global platform, Brent stood at $47.92 per barrel, down by 1.42%; West Texas Intermediate (WTI) at $45.11 per barrel, down by 1.31%.

Both the crude benchmarks slid by over 1% during today’s trade session.

The fuel prices slipped from a seven-month high today as signs of oversupply issue have halted the rally of oil. The optimism over the vaccine development to treat the pandemic has uplifted the mood of the oil markets hoping for the revival of the fuel demand.

The rise in the coronavirus cases and subsequent lockdowns have worsened the scope for a revival of the oil industry.

The vaccine news had given a new hope of revival of the oil industry weighing on its prices to march. But the signs of an abundant supply of crude to the markets has stalled the rally of fuel.

The U.S. crude inventories declined by 754,000 barrels last week as against the Reuters analyst estimate of a rise of 127,000 barrel. The stockpiles in Cushing, Oklahoma, dipped by 1.7 million barrels.

Over the last two weeks, America has recorded a whopping 2.3 million new cases. The country is the largest consumer of oil globally, the rise in the infection levels may prompt for renewed restrictions, impacting on the fuel demand to decline in the coming days.

 

26 November 2020
Diesel Prices Marches Up in India

The diesel prices marched up in India despite a slip in the overseas fuel rates amidst signs of oversupply issue. The diesel rates in India stood at Rs 71.62 per litre in New Delhi, Rs 78.12 per litre in Mumbai, Rs 75.19 per litre in Kolkata and Rs 77.08 per litre in Chennai.

In the global platform, Brent stood at $47.92 per barrel, down by 1.42%; West Texas Intermediate (WTI) at $45.11 per barrel, down by 1.31%.

Both the crude benchmarks slid by over 1% during today’s trade session.

The fuel prices slipped from a seven-month high today as signs of oversupply issue have halted the rally of oil. The optimism over the vaccine development to treat the pandemic has uplifted the mood of the oil markets hoping for the revival of the fuel demand.

The rise in the coronavirus cases and subsequent lockdowns have worsened the scope for a revival of the oil industry.

The vaccine news had given a new hope of revival of the oil industry weighing on its prices to march. But the signs of an abundant supply of crude to the markets has stalled the rally of fuel.

The U.S. crude inventories declined by 754,000 barrels last week as against the Reuters analyst estimate of a rise of 127,000 barrel. The stockpiles in Cushing, Oklahoma, dipped by 1.7 million barrels.

Over the last two weeks, America has recorded a whopping 2.3 million new cases. The country is the largest consumer of oil globally, the rise in the infection levels may prompt for renewed restrictions, impacting on the fuel demand to decline in the coming days.

 

26 November 2020
Diesel Prices Unchanged in India

The diesel prices are unchanged in India despite a rise in the crude rates in the overseas markets as hopes of vaccine grows. The diesel rates in India reported trading at Rs 71.41 per litre in New Delhi, Rs 74.98 per litre in Kolkata, Rs 77.90 per litre in Mumbai and Rs 77.01 per litre in Chennai.

In the global platform, Brent stood at $48.08 per barrel, up by 0.46%; West Texas Intermediate (WTI) at $45.09 per barrel, up by 0.40%.

The oil industry was struggling to revive since the outbreak of the pandemic crisis. The weak fuel demand had weighed on the prices to fall. At one point during April 2020, the crude rates crashed to zero and traded in negative numbers.

But the hopes of a vaccine to prevent the virus infection has uplifted the mood of the oil industry driving its prices to jump over the last two weeks.

So far, three pharma companies including Pfizer, Moderna and AstraZeneca have reported positive trial results for the vaccine aimed to cure the pandemic. The coronavirus crisis has depleted the demand for fuel across the globe due to imposition of lockdowns and travel restrictions.

An analyst from UBS notes that the crude outlook for next year will be bullish and the crude benchmark – Brent is likely to touch $60 per barrel by the end of fiscal 2021.

Meanwhile, the formal start of the U.S. President-Elect Joe Biden’s transition to the White House has improved the global forecast.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies are likely to continue with the production cuts into 2021. The final decision will be arrived at after completing the technical talks between the member nations scheduled on November 30.

25 November 2020

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