On Wednesday, the price of diesel fuel per litre stood at Rs. 79.88 in Delhi while the petrol costed Rs. 79.76 per litre
Ever since the announcement of fuel price fixture on daily basis, we rarely saw the prices of petrol and diesel decrease. On Wednesday, the price of diesel increased for the eighteenth day in succession as it stood at Rs. 79.88 per litre in New Delhi. With the petrol price remaining unchanged at Rs. 79.76 per litre for the day, the diesel fuel price per litre was more expensive than petrol for the first time in the union territory.
In the last 18 days, the petrol and diesel fuel prices have been hiked by Rs. 10.49 per litre. For instance at the beginning of 2018, the diesel fuel costed only around Rs. 62 in Delhi and within the space of 18 months, it has certainly skyrocketed. If we recall back to 2011, the difference between both the fuels stood at a massive price gap of Rs. 30 per litre.
The automobile industry invested heavily in diesel powertrains early last decade mainly due to the price difference between petrol and diesel, as the latter allows for better fuel economy at a lower price and the long term running cost was significantly lesser. However, as years passed by and more stringent emission standards came into effect, the oil-burners had to be eradicated.
The BSVI emission norms implemented since April 1, 2020 have led to many carmakers discontinuing even the popular diesel models as they did not make sustainable business case in the long run. Resultantly, most of the sub Rs. 10 lakh segments are devoid of diesel models. In June 2017, fuel retailers such as Indian Oil, Bharat Petroleum and Hindustan Petroleum opted for daily price revisions.
The dynamic fuel pricing system has indeed reduced the gap between petrol and diesel fuels. The increase in taxes on diesel by central and state governments over the years has played a main role in the surge in prices as well.
Following nearly three months of the nationwide shutdown, the increase in fuel rates resumed on June 7 as the petrol and diesel prices reached record highs. With the continued increase in overseas oil prices and global economic downfall, we could only see increase in fuel rates over a long period of time.