Petrol Prices Increased By 10 Paise, Diesel Rates Remain Unchanged

The price of petrol has been increased by 10 paise per litre today, while the cost of diesel remained unchanged in the Nation's capital. Currently, petrol is priced in Delhi at Rs. 81 per litre, while diesel is priced at Rs. 73.56 per litre. Diesel rates which had surpassed petrol in Delhi last month came down after the Delhi government announced 13.25 per cent reduction in the Value Added Tax on July 30. Ever since diesel prices have been steady in India, however, petrol prices are still rising across the country.

The Delhi government had announced a 13.25 per cent reduction in the Value Added Tax on July 30

The Delhi government earlier had increased the VAT on diesel from 16.75 per cent to 30 per cent. Also, the hike that came into effect on May 5 played a crucial role in diesel seeing a steepest ever price hike of Rs. 7.10 per litre. Until July 29, diesel rates in Delhi retailed at Rs. 81.94 per litre.

Also Read: India's Petrol, Diesel Demand Falls Due To High Prices, Lockdown

Other metros saw similar price revision in fuel rates. In Mumbai, petrol prices were increased to Rs. 87.68 per litre, while diesel rates remained unchanged at 80.11 per litre. In Chennai, petrol prices have reached 84.09 per litre, while diesel is priced at Rs. 78.86 per litre, whereas, in Kolkata, the rates stood at Rs. 82.53 per litre and Rs. 77.06 per litre, respectively. In Bengaluru, petrol prices stand at Rs. 83.63 per litre and diesel is priced at Rs. 77.88 per litre, while in Hyderabad, the prices stand at Rs. 84.18 and Rs. 80.17 per litre, respectively.

Also Read: India's Weak Fuel Demand Drags On As Virus Crisis Worsens

Earlier this month Indian Oil had said that it doesn't see a recovery in demand to pre-COVID levels in the near future

In July, the India saw its fifth consecutive year-on-year decline as a result of a spike in coronavirus cases and floods in many parts of the country restricted economic activity. Diesel consumption, which accounts for about two-fifths of India's overall fuel usage and is widely used for transportation as well as for the country's irrigation needs, fell to 5.52 million tonnes last month from 6.31 million tonnes in June. On an annual basis, the demand for diesel declined by about 19.3 per cent. Sales of petrol fell by 10.3 per cent from a year earlier to 2.26 million tonnes and were down 0.8 per cent from 2.28 million tonnes in June.