New Delhi: For the first time in Delhi, diesel has become costlier than petrol.
For the 18th day in a row, state-run oil companies on Wednesday raised prices of diesel. However, no increase was witnessed in petrol prices.
While petrol costs Rs 79.76 per litre, diesel can be bought at Rs 79.88 per litre.
The price of diesel has been increased by 48 paise a litre.
Rates differ from state to state depending on the incidence of VAT.
However, diesel is costlier than petrol only in the national capital where the state government had raised local sales tax or VAT on the fuel sharply last month.
The increase in rates since June 7 is the highest in any fortnight. When petrol and diesel pricing was deregulated in April 2002, oil companies revised rates every fortnight in line with the cost. They switched to daily price revision in May 2017 to allow cost to reflect instantaneously in retail rates.
According to pricing data, the maximum rates have increased in any fortnight was Rs 4-5 per litre.
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Prior to the current rally, the peak diesel rates had touched was on October 16, 2018 when prices had climbed to Rs 75.69 per litre in Delhi. The highest ever petrol price was on October 4, 2018 when rates soared to Rs 84 a litre in Delhi.
When rates had peaked in October 2018, the government had cut excise duty on petrol and diesel by Rs 1.50 per litre each. State-owned oil companies were asked to absorb another Rs 1 a litre to help cut retail rates by Rs 2.50 a litre.
Oil companies had quickly recouped the Re 1 and the government in July 2019 raised excise duty by Rs 2 a litre.
Taxes make up for nearly two-third of the retail selling price. As much as Rs 50.69 per litre, or 64 per cent, in petrol price is due to taxes - Rs 32.98 is the central excise duty and Rs 17.71 is local sales tax or VAT.
Over 63 per cent of the retail selling price of diesel is taxes. Out of the total tax incidence of Rs 49.43 per litre, Rs 31.83 is by way of central excise and Rs 17.60 is VAT.
The 82-day freeze in rates this year was imposed in mid-March soon after the government hiked excise duty on petrol and diesel to shore up additional finances.
(With Inputs from ANI and PTI)
