Diesel Price in Punjab

Diesel Price in Punjab Today (Apr 23 2024)

Diesel Price in Punjab is ...

Change In Prices of Diesel in Punjab (Today & Yesterday)

Diesel Price in Punjab

Punjab is a state in India’s northwestern region. Chandigarh is the capital of both Punjab and Haryana.  With an increasing number of vehicles on major city roads, the state’s consumption of diesel is increasing. Even public transportation in most cities is provided by diesel-powered buses, increasing the state’s reliance on fossil fuels.

Trend of Diesel Price in Punjab for February 2021 (rates per litre):

• The diesel price in Punjab began at Rs.76.21 per litre. There was no change in gasoline price compared to the closing rate for the month of January.
• The diesel price in Punjab fluctuated throughout the month. The fuel reached its highest price for the month on the 27th and 28th of February when it was priced at Rs.81.15 per litre. The lowest price was recorded on February 1st, 2nd, and 3rd when a litre of diesel cost Rs.76.21 per litre.
• In Punjab, the fuel’s overall performance showed an upward trend, with a 6.48 per cent increase in percentage change.

Trend of Diesel Price in Punjab for January 2021 (rates per litre):

• The diesel price in Punjab began at Rs.73.58 per litre. The price of diesel in Punjab fluctuated throughout the month.
• The fuel reached its highest price for the month from the 27th to the 31st of January, at Rs.76.21 per litre. The lowest price was recorded on January 1st, 2nd, and 3rd when a litre of diesel cost Rs.73.58 per litre.
• In Punjab, the fuel’s overall performance showed an upward trend, with a 3.57 per cent increase in percentage change.

Trend of Diesel Price in Punjab for December 2020 (rates per litre):

• The diesel price in Punjab began at Rs.72.17 per litre. There wasn’t any change in the price of fuel in Punjab when compared to the closing rate for the month of November.
• The diesel price in Punjab fluctuated during the first few days of the month, after which it remained relatively stable. The highest rate in that month was recorded on the 7th and 8th of December, after which it remained stable for the majority of the month. During this time period, the price was Rs.73.61 per litre. The lowest price was recorded on December 1st when a litre of diesel retailed for Rs.72.17 per litre.
• In Punjab, the fuel’s overall performance showed an upward trend, with a 1.95 per cent increase in percentage change.

Trend of Diesel Price in Punjab for November 2020 (rates per litre):

• The diesel price in Punjab began at Rs.70.17 per litre. The price of gasoline rose steadily over the month, with only minor fluctuations.
• The fuel reached its highest price for the month on November 29th and 30th, when it was priced at Rs.72.17 per litre. The lowest rate in that month was recorded on various days between November 1st and November 19th, when the fuel retailed price was at Rs.70.17 per litre.
• In Punjab, the fuel’s overall performance showed an upward trend, with a percentage change of 2.85 per cent.

Trend of Diesel Price in Punjab for October 2020 (rates per litre):

• At the start of the month, the price of diesel in Punjab was Rs.70.33 per litre. In comparison to the previous month’s closing price, there was no change in rates.
• During the month of October, the price of gasoline fluctuated a lot. After beginning the month at its highest point, the price fell the next day to its lowest point, with a litre costing Rs.70.17.
• While the rates improved slightly on October 10th, they remained to fluctuate between Rs.70.17 and Rs.70.20 until the end of the month. Diesel ended the month at Rs.70.17 per litre, with an overall performance showing a downward trend. The percentage change in rates was recorded as -0.22 per cent.

Diesel Price in Punjab Compared to its Neighbouring States

Diesel price in Punjab is relatively low when compared to neighbouring states Himachal Pradesh, Jammu and Kashmir, Haryana, and Rajasthan. Except for Rajasthan, diesel prices in all other states are nearly identical because state-level taxes levied by the respective governments vary only slightly.

How often Diesel Rates are Revised in Punjab

Like those in other Indian states, Diesel price in Punjab is revised daily in accordance with the dynamic fuel pricing model introduced in India in June 2017. The new pricing model requires diesel prices to be revised on a daily basis in accordance with international crude oil prices and currency exchange rates.

Before dynamic fuel pricing, diesel prices in India were revised once every 15 days, causing customers to experience unexpected price increases. With the new daily diesel price revision, any change in the global crude oil price and the exchange rate would be immediately transferred to the end customer. It also increases transparency in India’s fuel pricing.

According to the new pricing model, all petrol stations must update the revised diesel price by 6 a.m. every day. By 8 p.m. the previous day, the oil companies will have updated the petrol pump dealers.
While automated fuel stations will receive an automatic update of revised fuel prices, non-automated stations must manually update the price.

Customers can check the daily revised diesel prices on the oil companies’ websites. They must send an SMS with a dealer code, which will be available at the respective fuel stations, in order to obtain petrol pump specific diesel prices.

Factors Affecting Diesel Rate in Punjab

Diesel prices in Punjab differ from those in other states, owing to a state-specific tax. Diesel and other petroleum products are subject to value-added tax (VAT) in all Indian states. Whenever the tax is revised, the diesel price in the respective states, including Punjab, is affected.

Aside from VAT, the global crude oil price, the US dollar to Indian rupee exchange rate, central government taxes, profit margins, and other operating costs all have a significant impact on the price of diesel in Punjab and all other Indian states.

The price of diesel in India is directly related to the price of international crude oil, as India imports more than 70% of its oil requirements from other countries. Because global oil trading is typically conducted in US dollars, changes in the exchange rate have an impact on the diesel price. A weak dollar lowers the price of diesel, whereas a weak rupee raises the price.

Similarly to how state governments levy VAT, the central government imposes an excise duty on diesel that is uniform across states. Any changes to the tax would have a direct impact on the price of diesel in all Indian states. The government recently reduced the excise duty on diesel by Rs.2/Lt, lowering diesel prices across the country by Rs.2/Lt.

The dealer’s commission and other operating costs would also have a minor impact on the diesel price. The oil marketing companies currently revise dealer commissions once a year. Diesel prices will be affected whenever it is revised.

State Taxes and Diesel Price in Punjab

As previously stated, the Punjab state government levies VAT on diesel. Currently, it collects 17.33 percent VAT on a litre of diesel, which is the lowest rate compared to neighbouring states. Rajasthan, for example, has the highest diesel VAT rate among the aforementioned states, at 25.74 percent per litre of diesel. The state-level tax is what keeps the price of diesel in Punjab lower than in neighbouring states.

Effect of GST on Diesel Price in Punjab

GST, or the goods and services tax, was implemented in India with the slogan “one nation, one tax,” which is self-explanatory. Following the implementation of GST, a uniform tax on various products and services is being observed across India. However, diesel and other petroleum products continue to be taxed inconsistently because they are exempt from GST.

Diesel is taxed under the old tax regime, in which state and central governments levy separate taxes on the commodity. As a result, the impact of GST on diesel prices is currently nil. Currently, GST is levied in four different tax brackets, the highest of which is 28%.

Assuming diesel is taxed at the highest rate, the total tax on a litre of diesel will be 28%. The state of Punjab currently levies a 17.34 per cent VAT on a litre of diesel, whereas the central government levies an excise tax of Rs. 15.33/Lt, which is nearly 26 per cent higher than the current diesel price in Punjab. The current diesel taxes total 43.34 per cent, which is significantly higher than the highest tax bracket under GS. As a result, bringing diesel under GST is more likely to raise its price in Punjab by Rs. 13-14 per litre.

Diesel Cost versus Petrol Cost in Punjab

In Punjab, a litre of diesel costs Rs.57.11 and a litre of petrol costs Rs.73.42 as of October 12, 2017. The price difference between the two commodities exceeds Rs.16 per litre, which is worth considering given that both fuels are derived from the same crude.

The crude is the same, the refining is nearly identical, the transportation is the same, and it is sold at the same fuel station, but the price is different. What could be the cause of petrol prices being higher than diesel prices? The tax is the simple answer. Yes, it’s the tax all over again. Apparently, the tax appears to be the main source of trouble in India when it comes to fuel pricing.

While the VAT on a litre of diesel in Punjab is 17.34 percent, it is 36.11 percent on gasoline. Similarly, the central excise duty on diesel is Rs.15.33/Lt, while the duty on petrol is Rs.19.48/Lt. Isn’t it obvious, given the tax rates, why petrol is more expensive than diesel? Because of the large tax difference, the price difference between petrol and diesel is particularly high in Punjab.

News Snippets

Sale of petrol and diesel shrink by 17.6 and 26 per cent in March

The country’s demand for gasoline and diesel fell as the economy froze due to the nationwide lockdown. Petrol and diesel sales fell 17.6 per cent and 26 per cent, respectively, in March. According to preliminary industry demand figures, petrol sales fell to 1,943 million tonnes in March compared to the same month last year. Diesel sales fell to 4.982 million tonnes as demand fell by 25.9 per cent. According to the data, the sale of aviation turbine fuel (ATF) fell by 31.6 per cent to 4,63,000 tonnes. LPG was the only fuel that saw an increase in March. LPG sales rose by 1.9 per cent to 2.286 million tonnes.

The preliminary figures are for the three public-sector oil marketing companies: Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) (HPCL). It should be noted that March is the first month in the last two and a half that petrol has experienced degrowth. The fuel increased by 8.2 per cent in the first 11 months of the 2019-20 fiscal year.

OMCs continue to hike diesel prices across the country

On Thursday, diesel prices were raised for the third day in a row. State-owned Oil Marketing Companies (OMCs) raised prices in major cities by 19-20 paise per litre. According to the Indian Oil Corporation website, a litre of diesel costs Rs.66.01 in the national capital of New Delhi. Customers in Mumbai had to pay Rs.69.24 for a litre. In the other two major cities, Kolkata and Chennai, a litre cost Rs.68.42 and Rs.69.77, respectively.
On the global oil market, crude oil prices fell by about 2% on Wednesday.

Brent crude futures, the global benchmark for crude oil, were down 95 cents, or 1.5 per cent, to $63.60 per barrel. On Thursday, the rupee opened lower at 71.34 against the US dollar. It should be noted that fuel prices in the country are determined by international oil prices and the value of the rupee against the US dollar.

FAQ’s

✅ What is the average price of diesel in Punjab?

In Punjab, the average price of diesel is Rs.82.53.

✅ How much does Diesel cost in Punjab?

On 02 April 2021, the cheapest Diesel price in Punjab was Rs.74.31.

✅ Which city in Punjab has the cheapest Diesel price?

With Rs.74.31, Mansa has the lowest Diesel price in Punjab..