Petrol and diesel prices were hiked all over India for the 17th day in a row on Tuesday since state-owned oil marketers began revising prices from June 7 in line with costs. In these 17 fuel price hikes, petrol prices have gone up by Rs 8.50 per litre and diesel by Rs 9.77 a litre.
Where petrol has become dearer by 20 paisa a litre, diesel price has touched a new all-time high following a 55 paisa increase, as compared to the previous day's rates, according to data from Indian Oil Corporation.
In Delhi, the prices of diesel and petrol are almost equivalent now. Where petrol in Delhi would now cost Rs 79.76 per litre, diesel price stands at Rs 79.40 a litre, a narrow gap of just 36 paisa.
Owing to a difference in international benchmark prices, petrol generally costs between Rs 5-8 more than diesel. The two fuels had a price gap of Rs 7.3 a litre in early May but their equation changed following disproportionate hikes in VAT on two fuels by the state government.
VAT on petrol was hiked to 30% from 27% while VAT on diesel was jacked up almost twofold to 30% from 16.75% by the Kejriwal government.
Meanwhile, the price differential between petrol and diesel remains unchanged in other cities. For instance, petrol in Mumbai costs Rs 8.78 per litre more than diesel.
Fuel rates have been hiked across the country, varying from state to state basis the incidence of VAT (Value Added Tax), or local taxes. Petrol and diesel prices are assessed by oil marketing companies such as the state-run Indian Oil Corporation daily, and any revision in rates is applied from 6 am in the morning.
Below mentioned are the current petrol and diesel prices in metro cities (in rupees per litre):
- New Delhi: Petrol Rs 79.76. Diesel Rs 79.40
- Gurgaon: Petrol Rs 77.99. Diesel Rs 71.76
- Bengaluru: Petrol Rs 82.35. Diesel Rs 75.51
- Chennai: Petrol Rs 83.04. Diesel Rs 76.77
- Hyderabad: Petrol Rs 82.79. Diesel Rs 77.60
- Mumbai: Petrol Rs 86.54. Diesel Rs 77.76
Internationally, oil prices were steady on Monday, supported by tighter supplies from major producers but held in check by concerns over a rise in coronavirus infections worldwide that could stall a recovery in fuel demand.
Brent crude was up 5 cents, or 0.1 per cent, at $42.24 a barrel by 1349 GMT. The West Texas Intermediate (WTI) crude contract for August, which became the day's more active contract, rose 10 cents, or 0.2 per cent, to $39.93.