Find the Diesel Price in Udaipur also check the GST impact on Diesel and Petrol

Often referred to as the “City of Lakes”, Udaipur is one of the major cities in the State of Rajasthan. The city is set in the backdrop of the picturesque Aravalli Ranges separating it from the Thar Desert. Udaipur is one of the most sought-after tourist destinations in India for its rich heritage of palaces, monuments, gardens, and festivals. Besides tourism, the city’s economy is also driven by chemical and electronic manufacturing industries as well as handicrafts. Apart from the robust economy drivers, the city is also known for its educational institutes like the Indian Institute of Management (IIM) Udaipur.

The city is spread over an area of 200 sq.km with a population of more than 4.5 lakh as per the 2011 census. Udaipur is included in the Prime Minister Narendra Modi’s ‘Smart City’ mission to be developed as a smart city to improve its urban infrastructure and opportunities for industrial growth. The city is well connected through road, rail and air to major cities of the country.

With a burgeoning population and as a tourist destination, much of its transportation system depends on fuel. State-owned oil-marketing companies such as Indian Oil Corporation Limited (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) operate nearly 90% of fuel requirement of the city. The diesel price in Udaipur is predominantly depended on international and domestic factors. Here’s a detailed analysis of the major components of the diesel rate in Udaipur.

Major Factors Affecting the Diesel Price in Udaipur

As mentioned, international and domestic factors influence the fuel price in Udaipur. While international factors include the global crude oil price and the exchange rate of the US dollar, domestic factors include taxes, profit margins and the demand and supply of diesel. Let’s look at each of these factors in detail.

• International Crude Oil Price: Oil-producing countries sell unrefined or crude oil in the international market and India buys them at the Indian Basket index price. The Indian Basket or the Indian Crude Basket price is the price at which crude oil is purchased by India in the global market. Whenever there’s an incline or decline in crude oil prices, there’s a direct impact on the diesel price in Udaipur as well as other cities in the country. With India importing more than 70% of crude oil, the current diesel price in Udaipur is affected by any fluctuations in the price for a barrel of crude oil.
• Currency Exchange Rate: India purchases unrefined oil in US dollars and any changes in the exchange rate affects the diesel price in the city. When the INR value increases over the US dollar, diesel prices decreases accordingly and vice versa.
• Changes in the Demand & Supply of Crude Oil Pattern: Diesel prices in Udaipur and other cities in India is directly proportional to any fluctuations in the demand and supply of crude oil in the global market. Countries such as India and China have a high demand for fuel compared to other countries as their transportation is mostly dependant on diesel and petrol. Hence, any rise in the demand, diesel prices increases in cities like Udaipur. Also, any shortage in supply of fuel leads to a surge in fuel prices.

• Excise Duty & Value Added Tax on Diesel: The Centre and states levy tax on diesel fuel across the country. While the Central government charges Rs.15.33 per litre as excise duty on the diesel price in Udaipur, the State government of Rajasthan levies VAT at 24.28%. Both these taxes form the major domestic factor in influencing the diesel price in Udaipur.
• State-owned Oil Companies’ Profit Margin & Commission To Dealers: Oil-marketing companies (OMCs) procure and refine the crude oil, and transport it to fuel stations across the country. Before it's sold to the dealer, OMCs retain a profit margin. As for dealers, they store, dispense diesel and petrol, and maintain the fuel station for which they take a commission. These two components of the diesel price form the major domestic factor in affecting the diesel rate in Udaipur and other cities in India.

When is the diesel price in Udaipur Revised?

Prior to July 2017, diesel prices were revised every fortnight falling on the 1st and 16th of every month. This was based on the fortnightly average of the global crude oil price and the foreign exchange rate. Currently, the diesel price is revised daily under the “dynamic fuel pricing’ mechanism. Under the new mechanism, fuel prices in Udaipur are revised daily at 6 a.m. IST in tandem with any changes in the global crude oil price. The daily revision of diesel prices was implemented to offset any fluctuations in the crude oil price.

Is the diesel price in Udaipur similar to other cities in India?

The excise duty levied by the Central government remains the same across cities in India, while states levy VAT, which differs from state to state. The diesel price in Udaipur is influenced by the VAT levied by the State government of Rajasthan. Therefore, the diesel price in Udaipur is not similar to other cities in India.

How to get today’s diesel price in Udaipur?

With diesel prices revised on a daily basis, it becomes quite challenging in tracking the current fuel price in a particular city. However, OMCs have introduced several ways to find out the daily diesel price. Options such as smartphone mobile apps, SMS service, OMCs website and at the fuel stations are ways to get the current fuel price. For those looking to download the mobile app, IOC customers can take advantage of the Fuel@IOC app, BPCL customers can download and install the SmartDrive app, while HPCL customers can utilise the MY HPCL app to track the daily diesel or petrol price of a particular city.

As for those looking to use the SMS service, below is the process to get the diesel price in Udaipur and other cities of India.

• IOC: Type RSP, leave a space and then enter the dealer code and send the SMS to 9224992249.
• BPCL: Customers of BPCL need to type RSP, leave a space, enter the dealer code and send the SMS to 9223112222.
• HPCL: For those customers who fill fuel in HPCL petrol bunks, type HPPRICE, leave a space and enter the dealer code, and send it to 9222201122.

How does GST impact the diesel price in Udaipur?

India moved to a new taxation system from 1 July 2017 known as the Goods and Service Tax (GST). Under the new taxation system, all goods and services come under the ambit of GST; however, petroleum products have been kept away from this form taxation. Both diesel and petrol continue to attract the Centre’s excise duty and the State’s VAT. Since the highest tax slab under the GST is 28%, which is lower than the current tax on diesel, the revenue to the government is affected, hence, fuel does not come under the framework of the GST. Therefore, GST does not impact the diesel price in Udaipur.