Diesel prices on Thursday, 25 June, crossed the Rs 80-mark in Delhi to touch Rs 80.02/litre (increase by Rs 0.14), while petrol prices in the national capital rose to Rs 79.92/litre (increase by Rs 0.16), news agency ANI reported. The price of diesel remained higher than that of petrol for the second consecutive day.
On Wednesday, diesel became the most expensive auto-fuel in the country overtaking petrol for the first time in a long while as the oil marketing companies raised its pump prices while keeping the price of the other fuel unchanged.
“Diesel price movement is sharper in international market and if oil companies follow the global price trend, diesel prices will remain higher. It is after many years that this happened and is expected to sustain for some time unless government changes the tax structure on petroleum products again,” an oil sector expert from one of the big four audit and advisory firm told IANS on Wednesday, asking not to be named.
While movement of retail pricing is being seen with a sigh of relief by vehicle owners whose cars run on petrol, those buying the relatively expensive diesel cars are now repenting their decision.
The development is also being seen with caution by automobile companies who have spent millions to ramp up their facilities for diesel run vehicles, IANS reported. The expectation is that demand for such cars will now fall causing more damage to companies where sales are already impacted due to persistent economic slowdown and now the spread of the COVID-19 pandemic.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)