For the first time, the price of diesel has surpassed that of petrol in Delhi.

Fuel prices were hiked for the 18th day in a row. Since June 7, 2020, diesel prices have gone up by Rs. 10.49 per litre. As a result, today, the cost of diesel in Delhi is Rs. 79.88 per litre, while petrol costs Rs. 79.76 per litre.

In rest of India, the price gap between diesel and petrol has shrunk, however due to lower taxes, diesel prices are unlikely to surpass that of petrol in other states.

Oil marketing companies had suspended daily revision of prices due to the Covid-19 pandemic. Therefore, fuel prices remained almost stable during the 82-day period, except for the excise duty hikes.

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Fuel prices have gone up for the second day in a row. Petrol and diesel prices were hiked by Rs. 0.60 per litre on Sunday. On Monday too, fuel prices went up by Rs. 0.60 per litre.

On March 14, 2020, the government had hiked excise duty on petrol and diesel by Rs. 3 per litre. Following this, the oil companies had put daily price revisions on hold. Also, the tax hike was not passed on to the consumers.

The hike in excise duty was offset against the decline in international crude oil prices that hit a 2 decade low in April this year. The cost of an upgrade to BS6-grade fuel (Rs. 1 per litre) was also adjusted.

In addition to the excise duty, the hike in VAT by state governments has also been passed onto the consumers.

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The government of India has increased the excise duty on petrol and diesel by Rs. 10 and Rs. 13 per litre respectively.

It has been reported that the hike in excise duty will not affect retail prices of the fuels as state-owned oil companies will adjust them against the fall in crude oil price.

Special additional excise duty on petrol has been increased by Rs. 2 per litre, while road cess has gone up by Rs. 8 per litre. As a result, the total excise duty on petrol has risen to Rs. 32.98 per litre.

The special additional excise duty on diesel has been hiked by Rs. 5 per litre and the road cess is up by Rs. 8 per litre. The total excise duty on diesel is now Rs. 31.83 per litre.

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The Delhi government has raised VAT on petrol and diesel. This has lead to the price of petrol being hiked by Rs. 1.67 per litre, while diesel price has gone up by Rs. 7.10 per litre.

In Delhi, petrol now costs Rs. 71.26 per litre, while diesel is priced at Rs. 69.39 per litre following the hike. VAT on diesel has almost doubled from 16.75% to 30%.

The Tamil Nadu government has also raised VAT on fuel. Petrol prices in the southern state have gone up by Rs. 3.25 per litre, while diesel price has increased by Rs. 2.50 per litre.

Last month, the Nagaland government had imposed a Covid-19 cess of Rs. 6 per litre on petrol and Rs. 5 per litre on diesel.

Thanks to BHPian SmartCat for sharing this information with other enthusiasts.

American crude oil prices crashed by almost 90% and they were trading at around US$ 2-3 per barrel.

The sudden drop in the prices can be attributed to the lack global demand and excess production, as a result of the outbreak of the Covid-19 pandemic.

Oil producers are having to store crude in storage tanks and oil tankers. They are paying oil traders and refiners to lift crude from the source. As a result, later in the day, American crude oil price went into the negative and closed at US$ -35 per barrel.

The industry expects prices to bounce back in the following months.

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Jet fuel prices in India have been slashed by a record 14.7%. As a result, aviation fuel is now cheaper than petrol and diesel.

Following reduction in international prices, state-owned oil marketing companies have reduced the price of jet fuel twice in the last 2 months. On December 1, 2018, prices were cut by Rs. 8,327.83 per kilolitre, which amounted to 10.9%. On January 1, 2019, jet fuel prices were slashed again by Rs. 9,990 per kilolitre. As a result of these price revisions, jet fuel prices are now at their lowest in a year.

On January 4, 2019, the price of jet fuel (HPCL) at Delhi (Terminal 3) was Rs. 46,448.78 per kilolitre. In comparison, petrol was retailing for Rs. 68.44 per litre, while diesel was priced at Rs. 62.44 per litre. In Mumbai, the price of jet fuel was Rs. 46,413.86 per kilolitre, whereas the price of petrol and diesel was Rs. 74.10 per litre and Rs. 65.34 per litre respectively.

Source: Times of India

For the first time in India, the price of diesel has surpassed the price of petrol in the state of Odisha. On Sunday, diesel was retailing at Rs. 80.78 per litre, while petrol was priced at Rs. 80.65 per litre in Bhubaneshwar. 

Usually, diesel has a lower base price and lower taxes and dealer commissions compared to petrol. However, the base price has gone up by around Rs. 5 in recent times. Unlike other states, where VAT on diesel is lower than on petrol, the state of Odisha charges 26% VAT on both petrol and diesel. Therefore, diesel is now more expensive than petrol.

According to a media report, dealers are purchasing fuel from oil companies at Rs. 43.49 per litre for petrol and Rs. 48.02 per litre for diesel. The central government charges an excise duty of Rs. 17.80 per litre on petrol and Rs. 13.83 per litre on diesel, while dealer commission is around Rs. 3.50 and Rs. 2.50 per litre for petrol and diesel respectively.

Source: TOI

With per litre fuel prices creeping towards the 100-rupee mark, oil companies are upgrading their fuel dispensers to display 3-digit rates. According to a media report, old dispensers are being upgraded since these can only display prices in 2-digits before the decimal point. 

Fuel prices in the country have hit a record high in recent times. The price hike can be attributed to international crude oil prices and the weakening value of the Indian Rupee against the US Dollar.

Today (October 4 ,2018), the price of petrol in Mumbai is Rs. 91.34 per litre, while diesel costs Rs. 80.10 per litre. It is a similar situation in other Indian cities.

Source: Economic Times

Fuel pumps in Madhya Pradesh are offering incentives to buy fuel in order to maintain their sales volumes. Some pumps are offering free breakfast and tea for drivers who purchase 100 litres of diesel, while others are offering electronic appliances and 2-wheelers on the purchase of a specific quantity of fuel. 

Buying 5,000 litres of diesel can get you a mobile phone, bicycle or a wrist watch. Some pumps are offering a free wardrobe, sofa set or a 100 g silver coin on 15,000 litres of fuel. Customers buying 25,000 litres of diesel can get an automatic washing machine, while purchasing 50,000 litres can get you a split air-conditioner or a laptop. A free scooter or motorcycle is being offered on the purchase of 1 lakh litres of fuel.

Madhya Pradesh is among the costliest states when it comes to fuel prices as it charges 22% VAT on diesel and 27% on petrol. Therefore, most commercial vehicles passing through the state prefer to fill up in other states. Fuel pumps in the border districts of the state have been affected the most as diesel costs around Rs. 5 per litre more than in adjoining states.

According to a media report, fuel pump owners have said that sales have picked up since these offers were introduced. However, they have demanded that the government reduce taxes.

Source: TOI

Petrol prices have hit an all-time high in Mumbai. On September 3, 2018, the price of petrol in the city was Rs. 86.65 per litre, beating the previous all-time high of Rs. 86.25. The price of diesel has also hit a record high. In Mumbai, a litre of diesel cost Rs. 75.54 per litre.

Since August 2018, petrol prices have gone up by Rs. 2 per litre, while diesel prices been hiked by Rs. 2.42 per litre. Apart from crude oil prices in the international market and the weakening rupee, one of the factors affecting fuel prices is the high value added tax (VAT) in the state of Maharashtra. However, it has been reported that efforts are on to bring petrol and diesel under the ambit of the Goods and Services Tax (GST), which could give some respite from rising fuel prices.

Fuel prices in other cities have also been on the rise. The price of petrol in Delhi was Rs. 79.15 per litre on September 3. In Kolkata, a litre of petrol cost Rs. 82.06, while in Chennai it was priced at Rs. 82.24.

Source: LiveMint