Diesel Becomes Costlier Than Petrol

Diesel prices were hiked while petrol rates were left unchanged in metros on Wednesday. That marked the 18th straight increase in the prices of diesel since state-owned oil companies returned to the normal practice of daily reviews following a 12-week pause. In Delhi, the price of diesel was increased to Rs 79.88 per litre with effect from 6 am, from Rs 79.40 per litre, and the rate of petrol was left unchanged at Rs 79.76 per litre, according to notifications from state-run Indian Oil Corporation, the country’s largest fuel retailer. Wednesday’s price revision made diesel costlier than petrol in the national capital. (Also Read: How To Find Latest Petrol, Diesel Rates In Your City).

In the 18-day period, the price of petrol has been increased by a cumulative Rs 9.41 per litre in the national capital, and diesel by Rs 9.58 per litre.

Here are the latest petrol and diesel prices in metros (in rupees per litre):
City Petrol Diesel
Delhi 79.76 79.88
Kolkata 81.45 75.06
Mumbai 86.54 78.22
Chennai 83.04 77.17
(Source: Indian Oil)
However, the prices of petrol continued to be higher than diesel rates in the other metro cities of Kolkata, Mumbai and Chennai.

On June 7, state-run oil marketing companies Indian Oil, Hindustan Petroleum and Bharat Petroleum – which account for the majority of petrol and diesel outlets in the country – restarted the normal system of daily price reviews in line with costs following an 82-day hiatus.

Domestic petrol and diesel prices are determined broadly by crude oil and forex rates, and vary from state to state due to value added tax (VAT).

International oil prices dropped on Wednesday, extending losses from the previous day, as a more-than-expected rise in US crude stockpiles added to worries about oversupply. Brent crude futures – the global benchmark for crude oil – were last seen trading down 0.70 per cent at $42.34 per barrel.

Global oil rates have regained some ground from March lows as the easing of restrictions on transport and industrial activity to curb the spread of the coronavirus pandemic boosted fuel demand around the globe. Brent crude futures had hit a 21-year low of $15.98 per barrel in April.

The rupee gained by 38 paise – or 0.50 per cent – against the US dollar to end at 75.64 on Tuesday. At the current level, the rupee is down 6 per cent against the US currency so far this year.