Diesel Costs More Than Petrol in Delhi

Diesel prices exceeded that of petrol in Delhi on Wednesday, a first for the country, following 18 consecutive days of price hikes. Diesel, which has traditionally been cheaper than petrol in India due to lower taxes and the now abandoned price regulation, sprinted past petrol on Wednesday in Delhi though in other states it is still cheaper. In Delhi, diesel sold for ₹79.88 a litre and petrol for ₹79.76 on Wednesday. In Mumbai, diesel sold for ₹78.22 a litre and petrol for ₹86.54.

In the last 18 days, state oil companies have raised rates of diesel by ₹10.49 a litre and of petrol by ₹8.5 a litre to align them with international rates.

The advantage of relatively lower taxes that kept diesel cheaper than petrol in the country has almost disappeared in Delhi after recent tax hikes by both the Centre and the state. At 30%, the state’s value added tax is now equal on petrol and diesel in Delhi.

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