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Diesel becomes more expensive than Petrol in India

For the first time in a long while, diesel prices have surpassed the cost of petrol in the national capital New Delhi. Oil marketing companies have have raised their diesel pump prices by 48 paisa.

Check diesel & petrol price for today here: babatrucks.com/fuel-price-index

Currently in New Delhi, diesel is now priced at Rs. 79.88 per litre, while at the same time, the price of petrol per litre remains the same as it was on Tuesday at Rs. 79.76. In other metro cities, however, diesel continues to be a cheaper fuel than petrol, with a difference of Rs. 8 between the two in Mumbai, and Rs. 7 between the two in Bengaluru.

This unexpected development comes in lieu of of the Delhi government’s decision, taken at early May, to increase the Value Added Tax on diesel and petrol, which in turn increased the retail price for the two. For diesel, the VAT increased from 16.75 per cent to 30 per cent, while VAT for petrol saw a rise from 27 per cent to 30 per cent. With this move, the price of diesel gradually caught up with the price of petrol, and eventually took the lead.

Currently, the Central excise on petrol is Rs 32.98 a litre while that on diesel it is Rs 31.83 a litre. The VAT on petrol in Delhi is Rs 17.71 a litre and that on diesel is Rs 17.60 a litre.

This increase has not been warmly taken to by the commercial vehicle industry. The sector has been tormented by the loss of business due to the COVID-19 pandemic, and while it still is reeling from the impact of the lockdown, heightened diesel prices may add to their woes. Transportation associations have continually been asking the government to slash down fuel prices, threatening to suspend operations if their demands are not looked into urgently.

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