For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Diesel Now Costlier Than Petrol In Delhi, For The First Time Ever

|

On Wednesday, oil marketing companies raised diesel prices for the 18th straight day but kept petrol prices unchanged. In Delhi, diesel price has been increased by 48 paise on 24 June to Rs 79.88 per litre, making it costlier than petrol which remains priced at Rs 79.76 per litre.

Diesel Now Costlier Than Petrol In Delhi, For The First Time Ever
 

Since 7 June, after an 82-day pause in the daily revision of fuel prices, state-owned marketing companies have increased diesel price in Delhi by Rs 10.49 a litre.

Experts say that in the international market, diesel is slightly costlier than petrol due to higher cost of production. However, in India, tax on diesel have been kept lower than petrol since the fuel is primarily used by transporters and farmers. Besides Delhi, in other states, diesel continues to be cheaper than petrol but that gap is narrowing and this could possibly hurt the prices of farm products.

As for the national capital, historical data shows that the gap between prices of the fuels has vanished over the years. In June 2012, petrol price per litre in Delhi was Rs 71.16 a litre and diesel Rs 40.91, a difference of Rs 30.25. Now, after 8 years, diesel has become costlier than petrol.

This is largely due to an increase in both state and central government taxes.

On 4 May, amid falling revenues due to the coronavirus pandemic, Delhi government had increased VAT on both the fuels to 30 percent. For diesel, it was an increase from 16.75 percent earlier causing an increase of Rs 7.10 per litre, which is much higher than the impact on petrol that was imposed with a state VAT of 27 percent earlier, increasing its rate by Rs 1.67 a litre.

 

Additionally, the central government had increased the excise duty on per litre of petrol by Rs 10 and per litre of diesel by Rs 13.

Consequentially, around 70 percent of the retail price of fuel you pay now is just some form of tax.

Read more about: diesel petrol
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more