Diesel price has crossed the price of petrol in the national capital, Delhi.This is unprecedented as the diesel prices have risen for the 18th day continuously.While the prices of petrol had not been raised for the same duration, making Diesel costlier than Petrol.
- Government run oil companies have raised the prices of Diesel for the 18th day continuously.
- Due to different tax rates in different states- In Delhi, Diesel price has surpassed the petrol’s.
- On Wednesday, Oil companies has raised the price of Diesel by 48 paise, making it 12 paise costlier than petrol in Delhi.
- Currently, Diesel & Petrol prices in Delhi stands at ₹79.88/L & ₹79.76/L respectively.
For the first time in history, state owned oil companies have raised the prices of diesel & petrol in such a manner that now Diesel is costlier than petrol.It has happened in the national capital where, Diesel prices have risen more than petrol.In Delhi, Diesel stands at ₹79.88 per litre & Petrol at ₹79.76 per litre.
In India, Oil Marketing Companies (OMC) have been on the spree of raising the price since the end of the Covid-19 imposed nationwide lock-down.The price rise on Wednesday was for the 18th day in a row by OMC.They raised the price of Diesel by 48 paise and leaving the petrol prices without any raise. Meanwhile, in states other than Delhi, Diesel prices still stand cheaper than petrol.This is because of different tax structures of different states and UT’s.
- In the last 18 days petrol & diesel prices have been raised by ₹8.50/L & ₹10.48/L in the national capital.
- State wise different rates of taxes.
- Delhi government has raised the VAT on diesel from 16.75% to 30% and on Petrol from 27% to 30%.
- Continuous rise of diesel price for the last 18 days, meanwhile keeping the price of petrol as it is.
- OMCs are adjusting their prices after the 82 day break because of Covid-19 lockdown.
- Central government collecting 256% tax on diesel & 250% tax on petrol.
Related article : US Crude Oil Prices Plunged Into A Historical Low
Is Diesel costlier than Petrol globally ?
No, this perception built in India is absolutely wrong.In India, governments of the past and present has adjusted the rates and taxes on both kind of fuels.In India, Diesel is considered as the fuel of the workforce and economy.For instance, farming mostly depends on Diesel powered equipment & vehicles and our supply chain + transportation depends on Diesel.
Globally, in most of the countries Diesel costs more than petrol, even the base price of Diesel is higher than Petrol.But, in India, governments has maintained the difference to support our economy.
Statement by Indian Oil Corp Chairman :
State owned fuel firms benchmark retail rates to Arab-Gulf international oil prices and a formula decides them.Demand dropped drastically in the aftermath of lock-downs imposed across the globe to curb spread of coronavirus , sending oil prices plunging to multi-year low.This included oil futures falling below zero on one day in US trading.Reducing prices in line with that fall was not “sustainable” as cracks – the difference between crude oil (raw material) and petroleum product (finished goods) prices – were running negative.
In addition to that, Diesel vehicle currently only account for 15%.And with the continuous rise in Diesel prices in India also matching the global traditions, vehicle manufacturers are gradually decreasing the numbers of diesel vehicles they manufacture.We have seen very few options of BS6 variant diesel model from different manufacturers.
Moving to the non-specifics, the internet is flooded with the memes and creative content regarding Diesel getting costlier than Petrol.Some of them are attached below;