Diesel Price in Rajasthan
Rajasthan is one of the major contributors to India’s domestic oil production. The economy of the state is mainly dependent on agriculture and industries. Compared to the other Indian states, diesel consumption in Rajasthan is predominantly by industries and private transportation vehicles rather than private vehicles.
Diesel Price in Rajasthan Compared to its Neighbouring States
Compared to its neighbouring states such as Madhya Pradesh, Gujarat, Uttar Pradesh, Punjab, and Haryana, diesel price in Rajasthan is the third highest with the highest diesel price observed in Madhya Pradesh.
Factors Affecting Diesel Rate in Rajasthan
As pointed out earlier, tax levied by the Rajasthan state government is the major factor that impacts diesel price in the state.
The Rajasthan government, just like other state governments in India, levies value added tax on diesel. Any revision of tax would impact the diesel price in all the cities in the state.
Besides the state level taxes, other factors that commonly impact diesel price in Rajasthan and in all other Indian states are the international crude oil prices, US dollar to Indian rupee exchange rate, central government taxes, freight and transportation charges, profit margins and other operating costs.
As oil trading typically happens in US dollars, the currency exchange rate becomes the next deciding factor of diesel price in India. The stronger the dollar, the higher the fuel price in India and vice versa.
Central excise duty, the tax levied by central government on diesel, together with state-level taxes, constitute more than 50% of the retail selling price of diesel. Even when the global oil prices hit an all-time low a year ago, diesel prices in India were still the same due to the continuous increase in excise duty on diesel. Therefore, any upward or downward revision of the tax rates on diesel will directly impact its price across the states.
State Taxes and Diesel Price in Rajasthan
The Rajasthan government currently levies a value added tax of 25.75% on a liter of diesel. The state-level tax is what makes diesel price different in different states.
How often Diesel Rates are Revised in Rajasthan
Diesel prices in all the cities of Rajasthan are being revised on a daily basis ever since the Dynamic Fuel Pricing has been introduced in India.
Dynamic fuel pricing mandates daily revision of fuel prices in all the petrol pumps across the cities. Accordingly all the petrol pumps in the state will update the revised diesel price everyday by 6 a.m.
Diesel Cost versus Petrol Costs in Rajasthan
Currently the excise duty of diesel is Rs. 15.33/Lt, whereas on petrol it is Rs. 19.48/Lt. Similarly, VAT charged by Rajasthan government on diesel is 25.75% per liter, whereas on petrol it is 32.95%.
