For the last couple of weeks, the petroleum products maintained an upward trajectory in prices touching new highs. On 18th consecutive day, oil companies increased prices of diesel by 48 paise whereas petrol prices remained unchanged. Petrol in Delhi now costs Rs. 79.76 per litre while diesel retails at Rs. 79.88 per litre, as per a report from ANI. For the first time in Delhi, the diesel price has surpassed the petrol price. Moreover, prices of petrol have remained untouched since June 7, 2020.
As diesel prices have been hiked for 18th day in a row since June 7, the total hike in diesel price amounts to Rs. 10.49 per litre. As far as other states are concerned, petrol prices will also rise but diesel will be cheaper than petrol due to lower taxes levied by other states. However, price gap between the two petroleum products will shrink further. The oil marketing companies have been revising retail prices in line with costs after an 82-day gap from rate revision due to the COVID-19 crisis.
Though the surging petroleum prices may create the required revenue for the government, it would also cause an unfavourable impact on household budgets. Also, an increase in diesel prices would have a wider impact on transport and agricultural sectors which are largely dependent on fuel.
In the last 17 days, retailers have cumulatively raised petrol and diesel prices by Rs. 8.50 per litre and Rs. 9.77 per litre. Both petroleum products have seen an increase of 14 per cent and over 26 per cent respectively, ever since oil retailers resumed daily price revision on June 7 after a gap of 82 days.