Diesel Price in Chhatisgarh

Chhattisgarh is the newly formed state which was carved out of Madhya Pradesh and granted statehood on November 1, 2000. It is the tenth largest state in terms of area and has a population base of 25.5 million as per the census report of 2011. The nominal gross domestic product of the state stands at Rs 3.26 lakh crore. The economy of the state grew at a rate of 6.7 percent during fiscal 2017-18. The state is also referred to as the rice bowl of central India.

Factors affecting the diesel prices in Chhattisgarh

In India, several factors attribute before arriving at diesel prices. These factors are mainly external in nature but they will form an important part while arriving at the final selling price of diesel in the country.

The following are the factors which affect the diesel prices in Chhattisgarh:

• Demand and Supply of Diesel – The demand and supply of the fuel play an important role in determining the prices of fuel. High demand leads to high prices and low demand will lead to a downfall in the prices. In the same way, if the supply of diesel dips owing to lagging imports or refinery problem and so on, then the prices will go up and vice-versa.

• Cost of Global Crude Oil – The cost of crude at the global level is the main factor while deciding the diesel prices in India. India imports crude to a major extent and the rising crude prices will increase the diesel prices in India and vice-versa. Worldwide demand and supply added with the prevailing economic conditions also determine the diesel prices.

• Tax Rates – The existing tax rates which are levied separately by the Central and respective state-based governments also determine the diesel prices in India. Higher tax rates will increase the diesel prices and low tax rates will bring down the diesel prices in India.