Diesel Price In Trichy Today

How are Diesel Prices in Trichy Updated?

Before 16 June 2017, oil marketing companies used to review fuel rates twice a month, which is on the first and sixteenth of every month. Since the arrival of the daily revision or dynamic fuel pricing system, all oil marketing companies, including Bharat Petroleum (BP), Hindustan Petroleum (HP), Indian Oil and Shell Oil, have been updating the current diesel price in Trichy on a daily basis. The pricing revision like the previous system is done on the basis of worldwide crude oil rates and the value of INR against the USD.

Why Dynamic Fuel Pricing?

Like the United States of America (USA), Australia and Russia, India has deployed the dynamic fuel pricing mechanism in order to address the drawbacks of the previous fuel pricing mechanism. Dynamic fuel pricing mechanism allows oil marketing companies (OMCs) to instantly transmit the changes in the INR/USD exchange rate and the cost price of crude oil. These two determinants are highly volatile in nature. It assures 100% transparency as far as fuel pricing is concerned. The new mechanism enables dealers to manage inventory effectively.

How to Track Daily Updates?

Be advised to examine the current diesel price in Trichy while buying. You cannot envision the price to be constant like before. Examining the current price is easy with mobile applications designed by all oil marketing brands. Smartphone users can download these applications. Oil brands also offer SMS services and customer support services. Alternatively, consumers can visit the websites of oil marketing companies, which will update the fuel price on a daily basis.

Who are the Stakeholders in the Indian Fuel Retailing Sector?

The stakeholders in the Indian fuel retailing sector include oil marketing companies, which import crude oil from abroad oil marketing companies; dealers, who are the retail entrepreneurs to supply fuels; and refineries. OMCs play a vital role in the sector.

How are Diesel Prices in Trichy Computed?

Do you know the components of the Retail Selling Price? Refer the following table:

What Factors do Affect Diesel Rates in Trichy?

The fluctuations in crude oil prices, the local tax, the central excise duty, dealer commission and the INR/USD exchange rate will influence diesel prices in Tiruchirappalli. For instance, fuel prices were down in October 2017 after cutting the excise duty. Tamil Nadu has not lowered the local tax like Maharashtra and Gujarat. On a contractual basis, crude oil is imported. Therefore, the value of the INR against the USD makes a big difference. The cost of crude oil will fall if the USD falls against the INR and vice versa. Eventually, the retail selling price is affected.

What is the Impact of GST on Diesel Costs in Trichy?

What is GST? As we all know, the Goods and Services Tax (GST) is a unified tax system used currently in India to impose the tax on all kinds of goods and services. Every consumer pays GST on the purchase of goods and services. It is worth noticing that both petrol and diesel have not been covered under the new tax system. Therefore, diesel rates remain unchanged. The highest tax rate set by the GST Council till date is 28%. Even if the government taxes the fuel at this highest rate, the fuel price will reduce by a big margin. Consumers will be benefited, but the government stands to lose the major chunk of income.

*Disclaimer: BankBazaar makes no guarantee or warranty on the accuracy of the data provided on this page, the prevailing prices are susceptible to change and provided on an as-is basis. We accept no liability for any loss arising from the use of the data contained on this website.