Own a diesel vehicle? Now pay Rs 2.94 more per litre

The fortnightly change in fuel prices in India has once again hit motorists’ wallets. From midnight of April 30 and May 1, the price of petrol has increased by Rs 1.06 per litre while diesel is now dearer by Rs 2.94 a litre.

The price difference between the two fuels is now Rs 11.24 a litre. The price gap between petrol and diesel had reduced from a high of Rs 29.60 a litre to Rs 10.20 a litre in March 2016.

As per a communication from Indian Oil Corporation, a litre of petrol now costs Rs 62.19 in Delhi, Rs 65.73 in Kolkata, Rs 66.71 in Mumbai and Rs 61.64 in Chennai. A litre of diesel costs Rs 50.95 in Delhi, Rs 52.97 in Kolkata, Rs 56.61 in Mumbai and Rs 51.78 in Chennai. This price change follows an upward revision in global crude oil prices in the past week.

The price of global crude oil has increased to US$ 43.86 (Rs 2,912.56) as compared to an average of US$ 36.98 (Rs 2,455.84) for the fortnight of March 30-April 12. One bbl or barrel is the unit of volume for crude oil and petroleum products and equals 42 US gallons or 35 UK (imperial) gallons, or approximately 159 litres.

Petrol car sales rev up, Delhi diesel ban to continue

Meanwhile, the government’s decision to ban the registration of diesel vehicles with engine capacity of over 2,000cc in Delhi-NCR (the Supreme Court has adjourned its hearing on pollution in Delhi-NCR to May 9 thereby extending the ban on above-2,000cc diesels) has accelerated the shift in consumer preference to petrol cars.

Automakers too are producing more petrol-engined cars to cater to burgeoning demand. Sales data for FY2015-16 from the Society of Indian Automobile Manufacturers (SIAM) reveals that the share of diesel vehicles among the total sales of passenger vehicles declined to 48% from 52% in 2014-15, while that of petrol vehicles rose to 52% from 47%.

Furthermore, the higher tax on diesel cars compared to their petrol-engined counterparts is also likely to fuel the ongoing shift in the near future. Earlier this year, the government announced a cess of 2.5% on diesel cars under four metres and with engine capacity of less than 1,500cc as against 1% for petrol and CNG cars of similar length.

Also read:

- Supreme Court extends ban on diesel cars and SUVs in Delhi-NCR 

- Top 10 fuel-efficient cars in India