For the first time, diesel costlier than petrol in Delhi | India News


By the time you read this, diesel will cost Rs 79.8 per litre and petrol Rs 79.7 per litre in Delhi, the first time diesel will be costlier than petrol anywhere in the country as state-run oil companies raised prices for the 17th day in a row, reports Sanjay Dutta.
Prices will rise elsewhere too but diesel will continue to be cheaper in other states due to lower taxes levied there, though the gap will shrink further. Government data shows the gap at its widest at Rs 30.2, or 74%, on June 18, 2012 when petrol cost Rs 71.1 a litre and diesel Rs 40.9 in Delhi.
In Mumbai, the gap was widest at Rs 31.1 on June 28, 2012 when petrol sold at Rs 76.4/L and diesel Rs 45.2. Diesel prices traditionally trailed petrol by a wide margin because of the way it used to be taxed. Both Centre and states kept tax on diesel low as it is mainly consumed by transporters and farmers.
Since fuel pricing was deregulated in October 2014, the difference in central taxes has narrowed but states still keep it on the lower side. In Delhi, taxes account for 64% of petrol price and 63% of diesel price. But taxes on diesel in other states are lower, hence the wider price gap.



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