Diesel Price in Delhi

Delhi, the official National Capital of India is a union territory of India. The city has a population of more than 11 million and accords for the second most populous city in the country. The city contributes around $167-$370 billion for the economy of the country. The city has witnessed growth at a rapid pace which has led for more number of people owning private vehicles.

As per the reports, the total number of two-wheeler vehicles registration during 2012 in Delhi stood at 4,661,714 as against 4,395,086 during the previous year of 2011, up by 6.06%. The city has highest road density as well as the largest number of registered cars in the country.

Crude oil products are consistently on a rise in India with the increased industrial activity that boost the production and delivery of the products. This year in 2024, it is expected to be the 16^th year of consecutive yearly rise for the demand of crude oil and petroleum products.

Diesel is one of the significant crude-oil based fuel that has more consumption in transport vehicles than passenger vehicles. The heavy trucks and lorries that travel across the country, state and cities are fuelled with Diesel which becomes critical for transport businesses, especially in Delhi. The strong consumption around the region makes diesel rates in Delhi more impacting to logistics. The high weight-age of the loadings in the trucks increases the fuel consumption of the vehicles and since there are no alternative options available for heavy transport vehicles in the near future, a strong demand for Diesel fuel consumption is expected ahead for this year. A vibrant demand points to a stable diesel price in Delhi as well as other parts of NCR.

One of the major car manufacturer of the country notifies this year that among their best model sold this year, 97% of the model were diesel variants and the rest were petrol variants. The Indian government have adopted norms to push consumers towards petrol and EV options rather than diesel engines. Moreover the diesel prices in Delhi, Mumbai, Chennai, Bangalore, Kolkata and major Indian cities are kept high for making consumers reluctant. Despite the government regulations strictly pushing for diminishing usage of diesel variants, consumers are firmly holding their grip on diesel variant cars.

What Aspects Determine Delhi Diesel Rates?

The major factors which have serious implications on diesel prices in Delhi are the following:

Domestic consumption of diesel in Delhi is high due to the increase in diesel variant passenger vehicles despite government regulations against it.

The surging usage would keep Delhi diesel rates at a stable level for the times ahead.

Revenue collection from sales is one of the important factors that makes central government surge the diesel prices in Delhi as well as other major parts of the country. Fuel tax collection is one of the highest contributor towards government treasuries and when the government decides to increase infrastructure and services to meet budget expectations, Delhi diesel prices would be impacted.

Government Norms & Regulations are made frequently in the current political tenure of the central government which has strategically made changes in petrol and diesel prices in India. When there are new updates and trade agreements with Crude Oil exporting countries, diesel rates in Delhi would have a positive effect with surging supply.

Election Season is another tenure for diesel prices in Delhi to expect a pull back. The ruling party in the central and state governments have historically utilised fuel prices in India to grab significant attraction in vote share. A cut in diesel prices in Delhi along with other parts of the country by the central government has multiple effects of daily food and other consumption cost. Hence, a relief in their expense would help them remember the efforts taken by the government.

Apart from the domestic aspects, international factors also play an influential role for Delhi diesel prices since if there is war situation in any major economies of the world, or geopolitical conflicts in the oil exporting countries, a supply disruption in global markets is evident. This would have impacts on Indian fuel prices and slight effect is witnessed in Delhi diesel rates as well.

Revision of Diesel Prices in Delhi

Diesel prices are revised on a daily basis as per the dynamic fuel pricing technique in Delhi starting from June 16, 2017.

As per this system, the diesel prices get changed regularly starting at 6 am in the morning across all the fuel filling stations in sync with global crude oil prices. The move is to bring in more transparency in diesel pricing and to pass on the profit in diesel prices to the end consumers.

These revised prices can be checked by the consumers by checking the oil marketing companies websites (Indian Oil, Hindustan Petroleum, Bharat Petroleum) or by downloading an application which gives a regular update on diesel prices in the mobile phone or by even sending an SMS to the respective oil retailers along with the dealer code.

If the petrol pump belongs to Hindustan Petroleum, then send an SMS to HPPRICE DEALER CODE and send it to 9222201122.

Or

For Indian Oil Corporation, send SMS to RSP DEALER CODE and send it to
9224992249.

Tax Rate on Diesel Price in New Delhi

The respective state governments in India levies state based Value Added Tax (VAT) on fuel prices in India. Delhi is a Union Territory and hence only VAT is applicable on diesel rates. The tax rates on fuel in the New Delhi is less compared to the rest of the states in India and hence the prices of petrol and diesel in Delhi costs less when compared to other cities in India.

Currently, the state-based VAT of diesel price in New Delhi stands at 17.25%.