Fuel Prices Hiked To Rake In More Funds To Fight Covid-19
Fuel Prices Increased To Fund Covid-19 Pandemic
Prices of petrol and diesel are up from May 6, 2020, as central and state governments are looking for ways to replenish their cash reserves to continue battling the Covid 19 pandemic. The economy has come to a standstill, which is not only affecting the lives of daily wage workers and private sector employees but also businesses and governments.
Despite a phenomenal drop in crude oil prices with chances of more to come, the fuel prices were not reduced in the country. Now, there’s a price hike instead to possibly replenish the cash reserves, which may be used to continue to treat the sick and prevent the spread of the Coronavirus.
Also Read: Passenger Cars Taxation Structure in India
Revised Petrol And Diesel Fuel Prices
Delhi Petrol up Rs. 1.67 – now at Rs. 71.30
Delhi Diesel up Rs. 7.10 – now at Rs. 69.43
Haryana Petrol up Rs. 1.01 – now at Rs. 70.83
Haryana (Rewari) diesel up Rs. 1.11 – now at Rs. 62.80
Tamil Nadu (Chennai) Petrol up Rs. 3.26 – now at Rs. 75.52
Tamil Nadu (Chennai) Diesel up Rs. 2.51 – now at Rs. 68.20
Goa (Panaji) Petrol up Rs. 2.11 – now at Rs. 68.54
Goa (Panaji) Diesel – no change – now at Rs. 63.03
Rajasthan (Jaipur) Petrol up Rs. 1.11 – now at Rs. 76.68
Rajasthan (Jaipur) Diesel up Rs. 0.54 – now at Rs. 69.80
The price jump of Rs. 7.10 for diesel in Delhi is massive and it’s now almost as costly as petrol. It’s worth noting that in the capital and surrounding regions, petrol vehicles older than 15 years and diesel vehicles of more than 10 years of age are not allowed to run. This had already put a dent in the sales of diesel vehicles in the region. Even newer diesel vehicles were leaving RTOs with 10-year lifespan on their registration certificate. It’s not clear yet if this age-limit rule will apply to BS6 petrol and diesel vehicles as well. However, closing the price gap between petrol and diesel fuel is likely to adversely affect the sales of diesel vehicles. Cost of making diesel vehicles BS6 compliant also increased the price gap between petrol and diesel vehicles for the consumers.