Earlier, the Diesel price in Chennai used to change every two weeks. Now, from June 15, 2017 the price will be changed everyday morning at 6 AM. This change is done by the petroleum companies in India. It is advised if you are going to fill Diesel it is better to check price of the Diesel before filling because the price will be changing every day. You can check the perfect and updated Diesel prices on the goodreturns.in. As the prices will be changed early in the morning at 6 AM it is advised to check the rates early in the morning before you go to your work. Mostly the pick or drop in the prices will be in few paise. It will not make any big difference for if you are filling in small quantities, as the prices will be changing on daily basis following up the prices will give you an understanding that in the long term this a low price or a high price. The change in the prices is due to movement in the international crude oil prices. Diesel prices in Chennai will rally if crude oil prices in International Markets rally
and vice versa.
Diesel Price in Chennai
Top Indian Oil Companies built several methods of tracing daily diesel prices in Chennai as compared to old rates. Indian Oil Companies has provided numerous methods to track diesel price without any hidden charges. One can go through SMS, official websites, mobile apps and toll-free numbers of the oil companies. To know the Diesel Price just type RSP DEALER CODE, and send it to 9224992249. You can also make a call to the provided toll-free numbers of the oil company to know the diesel price instantly. Indian Oil- 1800 233 3555, Bharat Petroleum- 1800 22 4344, Hindustan Petroleum- 1800 233 3555.
Diesel price of Chennai is daily updated on the company’s website and mobile app too. You can also go through the same without any hidden charges. Thus the price of diesel in Chennai is based on the varying factors of oil demand and import costs. The rates of each city can differ slightly in the state because of the multiple charges and fuel taxes.
Comparison of Diesel and Petrol Prices
In the case of diesel cars, the initial purchase cost is high but the efficiency is better than its petrol equivalent. So what matters now is how much you are driving in a month, if you are driving about 1500 km a month or 50 km per day, then go for diesel otherwise petrol. Comfort would be a consideration if you are someone who also takes long trips and diesel vehicles are convenient than petrol. Additionally, the smoothness to travel in diesel vehicles is great Using four-wheelers has increased in petrol and diesel as far as Chennai is concerned. However, people prefer petrol cars as it requires less maintenance compared to diesel. Global marketing companies plan to implement a method to match the global fuel prices regularly with international crude oil prices.
How the diesel rate in Chennai is influenced by the Dynamic Fuel Pricing?
The concept of so-called “dynamic fuel pricing” has been trending since it was introduced from June 17. It tends to adjust fuel rates on a daily basis in compliance with the currency exchange rate between US Dollar and Indian Rupee and global crude oil. This price change is carried out at 6.00 AM every day (Indian Standard Time). Therefore, it is always important to check the fuel rates before loading your tank. Since Chennai has been concerned from June 17 all the diesel stations have followed the dynamic fuel pricing mechanism across the city. Since the Dynamic Fuel Pricing has been implemented across the country including Chennai the primary concern of this mechanism is to bring fuel price transparency so that government bodies are unable to influence or influence the OMCs (Oil Marketing Companies). In addition, the variations in crude oil prices and the INR – USD exchange rate can be conveniently delivered to consumers.and also the dealers of fuel stations can easily handle their capital and resources with ease by considering this mechanism.
Elements impacting the Diesel price in Chennai Chennai’s diesel price have many elements, rather than key factors such as those of the price of crude oil and the currency exchange rate between Rupee- Dollar. Before the actual selling price of diesel in a city the oil firm include various charges such as freight charges, refinery charges, oil firm’s margin, entry tax etc. But the basic cost of fuel include dealer commission, excise duty levied by the Union Government and the VAT or local sales tax levied by the respective state. Although the other costs remain stable for the most part, the key crude oil price factors and the rupee-dollar exchange rate have the greatest effect on the country’s diesel prices. Let ’s discuss why the price of crude oil fluctuates, and how it impacts India’s fuel price. Allocation and Demand: Organisation of Petroleum Exporting Countries (OPEC) is the leading suppliers of crude oil in the global market and its close partners, thereby affecting the market price of crude oil to a broad range. Geopolitical trends in the area influence the OPEC regulations. Consequently, any distress on any of the OPEC member countries also indicates a lack of crude oil supplies, which increases the price of crude oil on the global market. Natural disasters: Any conflict or natural calamity also impacts the market price of crude oil, as it may result in a shortfall or a rise in oil demand. Political instability or conflicts in oil-producing or oil-consuming countries influence crude oil prices immensely. Supply of crude oil: The largest oil-producing and oil-consuming countries are stockpiling massive crude oil reserves to maintain their economy active in case crude oil prices rise. When oil prices are weaker they stock up and increase production throughout the market to retain stable rates. VAT on Petrol and Diesel in Tamil Nadu With the rise in value added tax ( VAT) on petrol and diesel by Rs 2,500 crore, the Tamil Nadu govt will raise its revenue. The increase in VAT has contributed to a hike in retail prices of both petrol and diesel, according to the state government. The state claimed that the VAT was raised to preserve the state revenue as and when global oil prices drop and customer interests will be secured when global oil prices rise. However, it is unlikely whether the state government will be able to meet its Rs.2,500 crore goal as sales have dropped by around 85 per cent at the retailers and it is not clear when the regular selling rate will be achieved again. In Tamil Nadu there are around 5,000 oil hubs and the average daily sales per station will be around 4,000-5,000 litres and the monthly production will be 150,000 litres. How to check the diesel price of Chennai via mobile apps of Oil Companies? Across all the parts of India including Chennai the diesel rates revised regularly and therefore to track the correct price of Chennai is a big trouble for the diesel consumers of Chennai. To overcome this problem the leading oil companies of India such as Indian Oil, Bharat Petroleum and Hindustan Petroleum culminated in separate solutions for fuel customers such as SMS, Mobile Apps and Customer Support to stay updated with the latest diesel rate of Chennai and also all other cities of the nation. Fuel users can install the official mobile apps of those oil companies from the default app store of their mobile OS. And this will enable Indian fuel customers to accurately track the appropriate price of diesel in the city. From June 2017, the Dynamic Fuel Pricing system has adopted by the leading oil companies of India resulting to a daily revision of diesel price across the cities of India including Chennai. Diesel price keeps changing on a daily basis due to some factors such as state taxes, currency exchange rate and more. So it is essential to stay updated with the updated diesel price of the city regularly. For this, the mobile apps of provided the oil companies enables you to track the diesel price of Chennai on the go. Below are the smartphone apps that enable you to remain updated with latest diesel price of Chennai without compromising your comfort. Fuel@IOC – Indian Oil The Fuel@IOC- Indian Oil mobile app enables Indian oil fuel customers to conveniently search the fuel price (petrol and diesel) of Chennai as well all other cities and states of India. A diesel consumer of Chennai can easily track the updated and accurate diesel price of the city from the comfort of his / her home or office by using this app. This app is available for download on IOS and Android devices alike. IOS owners can access the App Store to download the app, and by opening the Google Play Store, Android fans can perceive the same. Indian Oil’s mobile application lets users to check the revised diesel rates on a regular basis 24×7 without any hidden charges. Before fuelling your vehicle, it is strongly suggested to verify the fuel price of your city and considering this, the Fuel@IOC-Indian Oil app is your ideal match to receive updates of the price revision of your city. Well you can now search Chennai’s current diesel price by using your cell phone before going to your office, which means that convenience and user-friendliness are just in your fingertips. To know the latest fuel price pattern in Chennai with clarity, use this app which is free to download to both IOS and Android users. If you are not an IOS or Android user, you can visit the official website of Indian Oil directly to check the current diesel prices in Chennai. Without sacrificing your convenience, you can easily monitor the current price of diesel in Chennai or your area by visiting the respective website of Indian Oil or by accessing the Fuel@IOC – IndianOil mobile app. My HPCL Mobile Application Hindustan Petroleum, developed by my HPCL mobile app, also presents an improved section to stay informed with Chennai’s revised and precise diesel prices. The app is available for free download or for Android, IOS and Windows devices. This software also has some important findings for Chennai’s fuel customers, like Outlets & Services, My Vehicle, Updates, customer support section, Feedback, Assistance & Tips, and also generates access to Insurance Renewal (with partner firm), DTPLUS (HPCL Rewards Scheme for fleet operators) and HPGAS (LPG), in addition to providing Chennai’s modified diesel price on a daily basis. While it is assumed that the overall trend is customer-centric, fuel prices are now determined based on global market conditions and USD to INR price variations in all parts of the nation. Diesel consumers in Chennai can quickly check for new diesel prices in the city from the comfort of their home or office. While going to the office or filling a car, customers can hit the revamped diesel price every morning with a few taps. Chennai’s diesel consumers who do not have a mobile can also visit HPCL’s official website or use the SMS service or HPCL’s toll-free number to regularly monitor the city’s current fuel prices. How the diesel prices in Chennai are modified? The below covered are the different components which influence the Retail Selling Price of diesel in Chennai Crude Oil Prices: Indian oil traders purchase Crude oil from companies trading global oil. The price needs to be paid in the USD, which is the standard financial exchange currency, since it is being transacted on foreign exchanges. Crude oil is then transferred and distilled to extract diesel. The crude oil is transferred to produce diesel and is distilled. Price & freight charges, refining fees are applied to the Crude oil price which in other words also known as the Refinery Transfer Price (RTP). This is the price paid to the refineries by OMCs (Oil Marketing Companies), such as IOCL, BPCL & HPCL. OMCs hold a certain profit and allocate it to the Distributor (the Gas Pump owner). Refinery Transfer Price: The Retail selling price (RSP) is determined considering a variety of factors. Every fortnight, the average price of Indian Basket Crude Oil is calculated. This expense per barrel is in dollars. Also, the cost of Indian rupees depends upon the fortnight’s average conversion rate. Different taxes: The Central Excise Duty (levied by the central government) and the VAT (Value Added Tax) are 2 different taxes in nature. These taxes are applied to the cost that are charged to the dealer / owner of the fuel station. And the commission of the dealers is added to the price after the Central Excise and VAT is imposed which varies from state to state. What is the importance of diesel and it’s price mechanism in Chennai? Diesel is an important commodity of our Indian economy. It offers a wide range of usability for performance, reliability and sustainability. Diesel, through manufacturing, logistics and transporting, is used everywhere. In comparison to other fuels, diesel also has outstanding strength performance. Chennai is among the fastest growing metro city of India and hence the industrial sector and transportation or personal vehicles are increasing day by day the diesel consumption is also rising in result. As a great number of vehicles powered by diesel, manufacturing and engineering industries are rising considerably, the requirement for diesel is higher in the city or Chennai. Each diesel consumer from Pune needs to be aware of the method used to determine the price of diesel on a daily basis, the price revision of diesel and the factors impacting on diesel prices. A retail or dynamic diesel consumer has to know if GST affects the diesel rate. Okay, let’s dive at the following sections that take you to the roots of this factor. Look at the following linked parts, which will bring you to the factors in details. The regular adjustment has now come into force as of June 2017 by eliminating the earlier diesel price adjustment at which the price is evaluated every fortnight.