The price of diesel in Delhi has exceeded petrol. Petrol and diesel prices in the country have been increasing continuously for about 18 days. Experts say that if this pace continues, petrol and diesel prices can cross 100 rupees as well.
On Wednesday, the price of diesel increased by 48 paise. Now the price of one liter of diesel in Delhi has been increased to Rs 79.88 per liter. This is the 18th consecutive day when diesel prices have increased.
Why Petrol and Diesel Price Are Rising
Anshuman Tiwari, the editor of India Today Hindi, says, “Oil companies started increasing the prices of petrol and diesel in India when crude Oil was shallow around $ 19 per barrel. So now, the rate of oil Oil is rising. Brent crude has reached around $ 40 a barrel.
They are also losing in inventory with the oil companies. Demand has come down, and their margins have come down to minus. So they will compensate for this loss by increasing their margin. The government has increased the excise duty by about Rs 13. The entire burden of this has not passed on to the customers. In such a situation, it is natural that further rates will have to increase. If this pace continues, it will be no surprise that the price of petrol and diesel crosses Rs 100 per liter.
The Price Will Increase Now
Anshuman Tiwari said that the prices of diesel and petrol expected to increase further. Right now, oil companies are raising rates. After this, the state governments will increase VAT on this. Because of the lockdown, the state of the economy is in a bad state, so they are also looking for an opportunity to increase the tax on petrol and diesel.
This Is The Chronology Of Increasing Petrol and Diesel Prices
So you can understand the chronology of an increase in the prices of petrol and diesel in this way. First, the central government increased the tax on it continuously. Now the oil companies are correcting their bookkeeping by increasing the price, and further, the state governments will try to increase their revenue by increasing the tax. That is, the government has considered Oil as a milch cow in terms of charge. The entire burden of this will go to the public. If the price keeps increasing like this, then the rate of petrol and diesel can cross 100 rupees a liter.
This will not happen only when the government takes the first step and tries to stop it, but it is also a relief that the assembly of many states is not going to get before the elections.
Anshuman Tiwari said that this government has already decided that the prices of diesel and petrol should bring on par as the cost of both is almost equal. In other countries, the amount of diesel is often kept higher than gasoline. The reason for this is that its production cost is only slightly higher than petrol. But till now governments in India have been trying to keep it cheap by subsidy and tax because it used in significant works like agriculture, transport, electricity.
Why Is There A Difference In The Price Of States
According to Indian Oil, where the base price of petrol is Rs 22.11 per liter, the base price of diesel is Rs 22.93 per liter. That means diesel costs a little more. In a state where the tax on diesel is high, now the rate of diesel has been increased. VAT on diesel is low in agriculture-oriented states like UP, so the diesel rate is flat there.
What Will Be The Effect
In the last 18 days, the price of diesel has increased by Rs 10.48 per liter, while petrol has also become costlier by Rs 8.50. Due to the rise in prices of petrol and diesel to historical highs, the public is going to face a significant blow of inflation in the next days. Especially increasing the rate of diesel is more harmful. In India, diesel used in important works like agriculture, transport.
With the increase in diesel rates, the rates of agricultural production will increase, and the transportation of all goods will also increase. The freight of trucks will increase. Due to this, inflation expected to increase.