Diesel Price in Kerala

Kerala is popularly known as God’s own country. The state is one of the prominent tourist destinations in the country mainly due to the beaches, Ayurvedic tourism, hill stations, backwaters and tropical greenery. The state contributes close to Rs 7.73 lakh crore towards the gross domestic product. The per capita GDP stands at Rs 163,000. It has the highest literacy rate in the country which stood at 94% during the 2011 census. The population in the state of Kerala was recorded as 33,387,677 individuals as per 2011 census.

Tax Rate on Diesel Price in Kerala

Each and every state-run government in India levies a separate state based value-added tax on fuel prices. It is a form of consumption tax implied on a product or service by the state government wherein the value is added at each and every step of the supply changing beginning from the production and concluding with the sale.

In the state of Kerala, the state-based value-added tax on diesel stands at 23.84%.

Factors affecting Diesel Rates in Kerala

Various factors affect the diesel rates in the country and it is mostly external in nature. Several components will add up to the retail selling prices of diesel and it includes the cost of crude in the international market, the dollar-rupee exchange value, taxes levied by central and state governments, cost and freight prices, logistics, demand and supply factor, operating costs and margins and transportation charges and so on.

Diesel Rates in Kolkata Are Very Sensitive To Global Crude Oil Prices

If you own a car or any other vehicle in Kolkata you should be updated with the latest price at which petrol and diesel are being sold in Kolkata. The price of petrol and diesel in India differs across various cities and is not the same everywhere. For instance, fuel prices in Kolkata are different than petrol and diesel prices in other Indian cities like Bengaluru and Chennai. Petrol and diesel prices in India change almost daily.

In India and Kolkata fuel prices are determined are determined by Oil marketing companies (OMCs). Diesel price is revised each day at 6 AM. Consumers can get the latest petroleum prices using the customer care services of OMCs - Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation.

Due to the differential taxation structure at the Centre and states, diesel prices in India have always remained comparatively lower than that of petrol.

Further, diesel has always been cheaper than petrol as it is used by farmers along with truck and bus fleets.

Diesel price in Kolkata is impacted by a slew of factors like Brent crude oil prices, geopolitical tensions, rupee to US dollar exchange rate, which can cause market disequilibrium, and supply-chain issues. Besides, domestic factors such as revision in excise duty or state taxes, supply-demand gap, etc. affect petrol prices also.