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Diesel Price in India (4th August 2021)

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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 ₹ 89.87 ₹ 89.87
Kolkata ₹ 93.02 ₹ 93.02
Mumbai ₹ 97.45 ₹ 97.45
Chennai ₹ 94.39 ₹ 94.39
Gurgaon ₹ 90.40 ₹ 90.40
Noida ₹ 90.32 ₹ 90.32
Bangalore ₹ 95.26 ₹ 95.26
Bhubaneswar ₹ 97.99 ₹ 97.99
Chandigarh ₹ 89.50 ₹ 89.50
Hyderabad ₹ 97.96 ₹ 97.96
Jaipur ₹ 98.96 ₹ 99.66
Lucknow ₹ 90.15 ₹ 90.15
Patna ₹ 95.72 ₹ 95.72
Trivandrum ₹ 96.47 ₹ 96.54

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 Unchanged in India 

The diesel prices are unchanged in India despite a fall in the global crude rates as the lack of OPEC + unity hangs over the markets.

The diesel rates in India recorded at Rs 89.36 per litre in New Delhi, Rs 92.27 per litre in Kolkata, Rs 96.91 per litre in Mumbai and Rs 93.91 per litre in Chennai. 

In the global forum, Brent was seen at $76.39 per barrel; West Texas Intermediate (WTI) at $75.35 per barrel. 

On Friday, the members of the Organization of the Petroleum Exporting Countries (OPEC) voted to pump up production by about 2 million barrels per day from August to December 2021. The members have also voted to extend the remaining output cuts to the end of fiscal 2022, but objections from the United Arab Emirates have prevented an agreement. 

It was a rare public disagreement between the members of the oil producers club, as national interests were increasingly diverging, impacting the OPEC + policy as oil users want more oil as their economies revive from the coronavirus pandemic. 

The situation has led to the fall in the oil prices during today’s trade session, with the crude benchmark - Brent declining after witnessing four days of gains. Investors and traders are awaiting the outcome of the crucial talks of the oil producers club following a disagreement within the group members which could result in major producers pumping in high volumes to grab market share. 

Meanwhile, Saudi Arabia’s Energy Minister sought on Sunday to push back against UAE’s opposition to the proposed deal of OPEC and called for compromise and rationality to get unanimity when the members meet again on Monday. 

5 July 2021
Diesel Prices Unchanged in India 

The diesel prices are unchanged in India despite witnessing fall in the global crude rates after OPEC + extends supply talks. The diesel rates in India traded at Rs 89.18 per litre in New Delhi, Rs 92.03 per litre in Kolkata, Rs 96.72 per litre in Mumbai and Rs 93.86 per litre in Chennai. 

On the global forum, Brent was seen at $75.55 per barrel, down by 0.38%; West Texas Intermediate (WTI) at $74.74 per barrel, down by 0.65%.

The crude prices slipped lower today as the OPEC + members extended the output policy meeting. Sources close to the meeting reveal that the United Arab Emirates had balked at plans to return 2 million barrels per day (bpd) to the market during the second half of 2021.

Both the U.S. crude benchmarks contracts recorded gains on Thursday on unexpectedly cautious plans made by the Organization of the Petroleum Exporting Countries (OPEC). The proposal was supported by Saudi Arabia and Russia, noted sources. 

The crude futures of WTI slipped by 15 cents to settle at $75.08 after surging up close to 2.4% on Thursday to close at its highest since October 2018.

The Brent crude futures declined by 20 cents to touch $75.64 per barrel after rallying by 1.6% during Thursday’s trade session. 

Both the benchmark contracts had recorded gains on unexpectedly cautious plans by the OPEC and its allies. 

The oil prices retreated, though, after the plan was reported to have met resistance from Russia and OPEC + and the members have now postponed the ongoing ministerial meeting on Friday. 

2 July 2021
Diesel Prices Consistent in India 

The diesel prices are consistent in India despite inching up crude rates to touch over $75 a barrel in the overseas markets. The diesel rates in India recorded at Rs 89.18 per litre in New Delhi, Rs 92.03 per litre in Kolkata, Rs 96.72 per litre in Mumbai and Rs 93.72 per litre in Chennai.

In the international forum, Brent was seen at $76.52 per barrel, up by 2.55%; West Texas Intermediate (WTI) at $75.76 per barrel, up by 3.12%.

Today, the fuel prices broke above the $75 per barrel to touch a three-year-high ahead of the meeting of the oil producers club as they will decide on the production policy for the second half of 2021.

The revival of the crude demand has weighed on the fuel prices to march up. The easing of the economies has increased the movement of people and rebound in goods transportation and air travel as well. 

The prices of gasoline have also surged on the back of a post-pandemic driving spree. Hence a $75 a barrel of crude will mean even higher prices at the pump.

The decision by the oil producers club since the outbreak of the pandemic crisis helped for the revival of the oil industry was shattered at one time following prices crashing to zero levels and trading at negative numbers in April 2020. 

Meanwhile, Global Head of Commodities Research at Goldman Sachs, Jeff Currie, noted that they are expecting the OPEC production expansion of 500,000 barrels per day (bpd) might not be enough to keep the prices down. 

1 July 2021
Diesel Prices Stagnant in India 

The diesel prices are stagnant in India despite a marginal fall in the global crude rates amidst a slump in the U.S. crude stockpiles. The diesel rates in India traded at Rs 89.18 per litre in New Delhi, Rs 92.03 per litre in Kolkata, Rs 96.72 per litre in Mumbai and Rs 93.72 per litre in Chennai. 

In the global platform, Brent traded at $75.36 per barrel; West Texas Intermediate (WTI) at $73.96 per barrel. 

Both the U.S. crude contracts are just below the highs they had reached last in fiscal 2018 and are set to record their seventh monthly rise in the past eight months. 

The crude stockpiles in the United States of America slipped by 8.2 million barrels as per the data from the American Petroleum Institute. But, the correct data from the government is due to be released later today. 

The oil prices traded flat on Wednesday as they headed for monthly and quarterly gains after data suggested the shrinking of U.S. crude stockpiles. 

Meanwhile, an internal report of OPEC seen by Reuters highlights that the oil markets are likely to return to a glut situation after the oil producers club is expected to unravel oil production trims of under 6 million barrels per day (bpd) by April 2022. 

The members and their allies are meeting to decide on the fate of the future of the crude supply during tomorrow’s meeting. 

30 June 2021
Diesel Prices Hiked in India 

The diesel prices in India have hiked again despite a marginal dip in the crude prices in the international markets amidst rampant outbreaks and spread of the dangerous delta co-variant of coronavirus across the globe. The diesel rates in India were seen at Rs 89.18 per litre in New Delhi, Rs 92.03 per litre in Kolkata, Rs 96.72 per litre in Mumbai and Rs 93.74 per litre in Chennai. 

In the international markets, Brent was spotted at $74.96 per barrel, up by 0.37%; West Texas Intermediate (WTI) at $73.20 per barrel, up by 0.40%.

The new flare-up in the infection cases of the Delta variant comes ahead of the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies set to meet on July 1 to discuss easing the supply curbs. 

The sudden outbreak and the rampant spread of the new covariant of the coronavirus have weighed on the oil prices to slide in the international markets for a second consecutive day.

 The Organization of the Petroleum Exporting Countries (OPEC) and its allies had earlier forecasted the oil demand to improve during the fourth quarter of 2021. They had also predicted that the worldwide fuel supply will fall short of demand by 2.2 million barrels per day (bpd), giving the producers some room to agree to increase output.

The rise in the cases of the Delta variant in Britain has led to the slow down of talks of a travel corridor between the U.S. and Britain.

29 June 2021
Diesel Prices Consistent in India

The diesel prices are consistent in India despite a slight dip in the global crude rates in the international markets ahead of the OPEC + members meeting. The diesel rates in India were seen at Rs 88.90 per litre in New Delhi, Rs 91.75 per litre in Kolkata, Rs 96.42 per litre in Mumbai and Rs 93.46 per litre in Chennai. 

On the international markets, Brent was trading at $76.01 per barrel, down by 0.22%; West Texas Intermediate (WTI) at $73.97 per barrel, up by 0.11%.

The crude rates surged up to hit record highs and then recoiled from highs last seen during October 2018 on Monday’s trade session as investors focused eyes on the outcome of the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies as the United States and Iran wrangle over the revival of the nuclear deal. 

The fuel prices managed to rise for the fifth week as improved fuel demand rebounded on strong economic growth and increased travel during summer in the northern hemisphere, while crude supplies worldwide stayed snug following maintained production cuts by the OPEC and its allies. 

The oil producers club is returning around 2.1 million barrels per day (bpd) to the markets starting from May through July as a part of their earlier plan to gradually ease last year’s deeper output cuts. 

The outbreak of the pandemic crisis led to the slump in fuel prices as it crashed to zero and traded in negative levels during April 2020. To fix the trouble faced by the oil industry, the members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to go for deeper output cuts to support the prices. 

28 June 2021
Diesel Prices Gains in India 

The diesel prices gained in India following trends from the international forum amidst strong fuel demand. The diesel rates in India traded at Rs 88.65 per litre in New Delhi, Rs 91.50 per litre in Kolkata, Rs 96.16 per litre in Mumbai and Rs 93.23 per litre in Chennai. 

On the global platform, Brent was seen at $76.18 per barrel, up by 0.82%; West Texas Intermediate (WTI) at $74.05 per barrel, up by 1.02%.

On Friday, the oil prices continued their rally in the international markets for the fifth consecutive week in a row on expectations of demand growth that will outstrip supply. 

The improved fuel demand and the continued drop in the global fuel inventories have bolstered the oil prices to shoot up over the last few days, notes an analyst from UBS. They further added that a likely slump in the oil inventories to keep the crude prices moving higher during the third quarter of 2021. 

Meanwhile, all eyes will now be on the upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC) + allies are due to meet on July 1 to discuss the further easing of output cuts starting from August. 

The crude rates also secured support amidst the approval of the U.S. infrastructure bill bolstered optimism amidst the energy demand outlook. 

The outbreak of the pandemic crisis has diminished the fuel demand worldwide, weighing on its prices to slump. But the gradual reopening of the economies and easing of the travel-related restrictions has improved the oil demand. 

On the demand side, the oil producers club will have to consider the improved fuel demand in Europe, the United States of America and China following huge vaccination rollouts and reopening economic activities. 

26 June 2021
Diesel Prices Trades Flat in India 

The diesel prices traded flat in India despite witnessing drop in the global crude rates as oil clocks fifth straight weekly gain. The diesel rates in India were seen at Rs 88.30 per litre in New Delhi, Rs 91.15 per litre in Kolkata, Rs 95.79 per litre in Mumbai and Rs 92.89 per litre in Chennai. 

In the overseas forum, Brent was seen at $75.44 per barrel, down by 0.16%; West Texas Intermediate (WTI) at $73.13 per barrel, down by 0.23%.

The crude prices slipped during Friday’s trade session, yet they were on track for the fifth consecutive week in a row on expectations of demand growth which will outstrip supply. 

The Organization of the Petroleum Exporting Countries (OPEC) and its allies will be treading cautiously over returning more crude supply to the markets beginning from August 2021. 

The easing of travel restrictions and vaccination drives has helped the oil demand to rally over the last few weeks. Apart from this, the signs of economic revival has also lent support for crude. 

The Organization of the Petroleum Exporting Countries (OPEC) and its allies will be treading cautiously over returning more crude supply to the markets beginning from August 2021. 

The fuel prices also found support as the approval of the U.S. infrastructure bill which bolstered optimism over the fuel demand outlook. 

The members of the oil producers club will be considering the following key factors on the demand side - the strong growth in Europe, the U.S. and China. The vaccination drive in these countries has led to reopening of economies helping the fuel demand to shoot up.

25 June 2021
Diesel Prices Gains in India

The diesel prices gained in India despite sliding crude rates marginally in the global markets yet oil has managed to hover at nearly three-year highs on signs of revival of fuel demand. The diesel rates in India traded at Rs 88.30 per litre in New Delhi, Rs 91.15 per litre in Kolkata, Rs 95.79 per litre in Mumbai and Rs 92.89 per litre in Chennai. 

In the international scenario, Brent stood at $74.72 per barrel, down by 0.63%; West Texas Intermediate (WTI) at $72.58 per barrel, down by 0.68%. 

The fuel prices slipped marginally during today’s trade session but they still held close to their highest level in almost three years as it was supported by a surprise drawdown in the U.S. inventories and accelerating economic activity in Germany. 

Doubts about the future of Iran's nuclear deal that could end the U.S. sanctions on Tehran’s crude imports also supported the rally of the oil prices.

Both the U.S. crude benchmarks managed to hit their highest since October 2018, during Wednesday’s trade session, slightly giving back gains. 

The U.S. crude inventories witnessed a surprise slump by 7.2 million barrels for the week ending June 18, as per the reports from the American Petroleum Institute (API). 

Data from Germany showed a gradual revival of the fuel demand. The data further revealed the upward leap in retail conditions since German reunification occurred three decades ago. 

The U.S. Crude inventories fell to their lowest level across the Atlantic since March 2020, as per the official data. The U.S. gasoline stocks also recorded a surprise decline.

24 June 2021
Diesel Prices Stagnant in India

The diesel prices are stagnant in India despite a rally in the overseas markets amidst a huge drawdown in the U.S. crude stockpiles. The diesel rates in Mumbai were seen at Rs 88.23 per litre in New Delhi, Rs 91.08 per litre in Kolkata, Rs 95.72 per litre in Mumbai and Rs 92.83 per litre in Chennai. 

In the international forum, Brent was seen at $75.35 per barrel, up by 0.72%; West Texas Intermediate (WTI) at $73.28 per barrel, up by 0.59%.

The oil prices in the global markets rose after industry data revealed that the U.S. crude stockpiles declined more than expected, reinforcing views of a tightening fuel supply-demand balance as road and air travel is picking up in North America and Europe. 

The American Petroleum Institute (API) industry group reported that the crude stocks declined by 7.2 million barrels for the week ending on June 18, as per two market sources. 

If the official figures reported from the U.S. Energy Information Administration gets confirmed, it would be the fifth straight weekly drop, showing that the U.S.market is tightening. 

The Organization of the Petroleum Exporting Countries (OPEC+) members will be deciding on the future of the global crude supply once they meet on July 1 as they are taking stock of the demand recovery. 

A note from ING Economics says, that this will be the fifth straight week of declines, showing that the U.S. market is tightening. 

Meanwhile, markets' eyes are focused on the upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies to know the future course of action as they gauge the fuel demand recovery. 

23 June 2021

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