Diesel prices continue to be costlier than petrol in national capital Delhi after fuel prices hit a new high on Monday.
Diesel prices continue to be costlier than petrol in national capital Delhi after fuel prices hit a new high on Monday. The fuel prices have risen again in metro cities after a day’s break in otherwise continuous three weeks daily increase as state-owned oil companies continue to review prices daily after a 12-week cease on fuel price revision amid coronavirus lockdown. In the national capital, a litre of petrol costs Rs 80.43 per litre with effect from 6 am from the previous Rs 80.38 per litre. On the other hand, the rate of diesel hiked to Rs 80.53 per litre from Rs 80.40 per litre, according to data from state-run Indian Oil Corporation, the country’s largest fuel retailer.
With an exception of Delhi, petrol is still higher than diesel in other metro cities viz Kolkata, Mumbai and Chennai. State run oil marketing companies Indian Oil, Hindustan Petroleum and Bharat Petroleum, which combined account for the majority of fuel retail outlets in the country, restarted the daily review practice of fuel prices on 7th June 2020, merely days after the country entered Unlock phase 1. Fuel prices were stable for about 82 days during lockdown. The fuel prices are largely dependent on crude oil and forex rates, and vary from state to state due to value added tax (VAT).
Earlier this month, Financial Express Online had reported that fuel price will soon rise above the Rs 80 per litre mark in the national capital. Both petrol and diesel have been retailing for above Rs 80 for some days now. Among the major reasons for fuel price spurt are high duty on fuel, crude oil prices inch to pre-corona levels, and a weak rupee. The government had also imposed higher fuel taxes to earn more revenues even while the world was facing a supply glut of crude oil. For now, the government is collecting about 256% tax on diesel and 250% tax on petrol.