Diesel costlier than petrol for first time in history; retail fuel prices soar for 18th day in a row

Petrol Diesel prices: Diesel price on Sunday hit a fresh record high of 78.27 rupee per litre after rates were hiked by 60 paise per litre

After increasing for the 18th day in a row, it is for the first time in history of fuel prices that diesel costs more than petrol now. Diesel prices have gone up by 48 paise per litre, making it costlier than petrol by 12 paisa in the national capital. At the current fuel prices, diesel costs Rs 79.88 per litre and petrol Rs 79.76 per litre in Delhi. However, while diesel prices soared in other states as well, they still continue to be cheaper due to lower taxes levied by other states. Even then, the prices of diesel and petrol are neck to neck in other parts of the country as well.

Earlier this month, Financial Express Online had reported that fuel price will soon breach Rs 80 per litre mark in Delhi. It is already selling above the figure in many other states. The top reasons for the continuous hike in petrol and diesel prices are high duty on fuel, rise in crude oil prices to pre-corona levels, coupled with a weak rupee which have pushed the prices of petrol and diesel. While the world was facing a supply glut of crude oil following which prices of crude oil fell drastically, the BJP government had increased fuel taxes to earn more revenue. The government is now collecting about 256% tax on diesel and 250% tax on petrol.

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Since the end of lockdown in India, the state-run oil marketing companies (OMCs) have been on a spree to increase fuel prices as they continued to adjust retail rates in line with costs after an 82-day break from rate revision amidst the coronavirus pandemic. In total, prices of petrol and diesel have soared by Rs 8.50 per litre and nearly Rs 10.48 per litre, respectively, over the past 18 days in the national capital. The gap between these fuels was most visible on 28 June when diesel and petrol had a price difference of Rs 31.17, or nearly 75%. At that time, petrol was retailing at Rs 76.45 a litre and diesel for Rs 45.28 in Mumbai. 

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