Diesel Became Costlier Than Petrol For The First Time in Delhi.

Diesel Became Costlier Than Petrol For The First Time in Delhi.

New Delhi. Diesel has become costlier than petrol for the first time in the country’s capital. Oil companies made diesel costlier for the 18th consecutive day on Wednesday. With 48 paise being expensive, diesel has now become Rs 79.88 per liter in Delhi. At the same time, petrol rates have not changed. He is at 79.76 rupees.

Tax game in oil prices / Crude oil prices reduced but a huge increase in tax; Tax was 97% in March, increased to 226% in May, so customers do not benefit from falling prices

Diesel became expensive by about 11 rupees in 18 days due to the constant rate increase, diesel was 30 rupees cheaper than petrol 8 years ago.

Rate in 12 cities: Petrol is currently the most expensive in Indore and diesel in Delhi


City Name Petrol Petrol / Rs. LitersDiesel / Rs. Liters


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First of all, understand why diesel is becoming so expensive?

There are two reasons for this. Actually, the Central Government imposes Central Excise Duty on Petrol and Diesel and the State Governments levy Value Added Tax i.e. VAT.

1. Excise duty exceeds 30 rupees

On 14 March, the central government increased the central excise duty on petrol and diesel by Rs 3 per liter. Then on May 5, it suddenly increased to Rs 10 on petrol and Rs 13 on diesel. Excise duty is now charged on petrol at Rs 32.98 and diesel at Rs 31.83. The government will get an additional revenue of 1.6 lakh crore rupees this fiscal year by increasing the duty.

2. Delhi almost doubled VAT

Diesel in Delhi is now costlier than petrol because the Kejriwal government decided in May that it would increase VAT on petrol and diesel. VAT on petrol was increased from 27% to only 30%, but on diesel, it was almost doubled to 30% from 16.75%. Petrol became expensive by Rs 1.6, but diesel became absolutely expensive by Rs 7.

Companies are not far behind; Stayed 82 days, then continuously increasing rates for 18 days

The lockdown was underway when the Delhi government decided to increase VAT. On the other hand, oil companies revise petrol and diesel rates from June 2017, but during the lockdown, the companies did not increase the rates for 82 days. Unlock started in June, then companies started revising petrol and diesel rates from June 7. Petrol has become costlier by Rs 8.50 and diesel by Rs 10.88 in the last 18 days.

Diesel was 30 rupees cheaper 8 years ago.

In Delhi, in June 2012, 8 years ago, petrol was 71 and diesel was Rs 41 / liter. That is, diesel used to be 30 rupees cheaper than petrol. At the same time, in Mumbai in June 2012, the difference was 32 rupees. Then there was petrol at Rs 76 and diesel at Rs 45 per liter.

We pay only 50 rupees on petrol and diesel, excise duty increased to 28 rupees in 6 years

At present, only Rs 50 is charged from consumers on petrol and diesel. It carries a 60% excise duty and 40% VAT. Excise duty has been increased by Rs 23 on petrol and Rs 28 on diesel in 6 years.

Excise Duty on Petrol and Diesel

April 2014Rs 9.48Rs 3.56
June 2020Rs 32.98Rs 31.83
High23.5 rupees28.27 rupees

Tax Share in The Petrol Price.

ComponentPrice in Delhi (Rs/liter)
Base price22.11
Fare fare.33
Base Price + Rental Freight (VAT and Excise Duty is collected on this only)22.44
Excise Duty32.98
Dealer Commission3.60
Retail sale price76.73

Source: As per information available on IOCL website on June 16


Share of Tax in Diesel Price.

ComponentPrice in Delhi (Rs/liter)
Base price22.93
Fare fare.30
Base Price + Rental Freight (VAT and Excise Duty is collected on this only)23.23
Excise Duty31.83
Dealer Commission2.53
Retail sale price75.19

Source: As per information available on IOCL website on June 16

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