Another hike in fuel prices, petrol and diesel cross Rs 80-mark in Delhi

Diesel was more expensive than petrol in the city for the third consecutive day on Friday

On Friday, both petrol and diesel prices crossed the Rs 80 mark in Delhi. The prices of petrol and diesel were up by 21 paise and 17 paise, respectively.

Diesel was priced at Rs 80.19 a litre, up from Rs 80.02 a litre on Thursday, while petrol increased to Rs 80.13 a litre from Rs 79.92 a litre. This was the third consecutive day that diesel prices were seen above petrol in the city, and the 19th day in a row with no downward price revision. 

However, the prices of petrol continued to be higher than diesel rates in other metro cities of Kolkata, Mumbai, and Chennai. The prices of petrol and diesel in Kolkata were seen at Rs 81.82 a litre and Rs 75.34 a litre, respectively, while in Mumbai they were Rs 86.91 a litre and Rs 78.51 a litre. In Chennai, petrol was priced at Rs 83.37 a litre and diesel at Rs 77.44 a litre.

In the month of June, the price of liquefied petroleum gas (LPG) had also increased by Rs 11.50 a cylinder in Delhi. For the current month, price of a 14.2 kg non-subsidised LPG cylinders was seen at Rs 593 in Delhi, Rs 590.50 in Mumbai, Rs 606.50 in Chennai, and Rs 616 in Kolkata.

LPG consumption recorded a growth of 12.8 per cent in May as compared to the same month in 2019, mainly because of the government scheme regarding free refills of cylinders for poor households. For the months of April and May, LPG consumption saw a cumulative growth of 12.5 per cent. Under the scheme to give free cooking gas to Ujjwala households, so far, over 100 million free cylinders were distributed. 

Going by the thumb rule of three free 14.2-kg cylinders for one beneficiary, 240.9 million cylinders should be distributed in three months, with an estimated outgo of Rs 13,500 crore from the government kitty.

People staying at home during the lockdown and smooth supply increased domestic consumption of LPG cooking gas during the period. 

Consumption in May 2020 was higher by 8.7 per cent as compared to April 2020. Last year, during May 2019, a growth of 0.2 per cent was observed and the cumulative growth during April-May 2019 was 1 per cent. 

During May 2020, out of the five regions, the northern region had the highest share in total PSU LPG sales of 30.5 per cent, followed by the southern region at 26.3 per cent, western region at 20.5 per cent, eastern region at 19.5 per cent, and north eastern region at 3.1 per cent, said a report by the Petroleum Planning and Analysis Cell.

How the price gap narrowed

Diesel has traditionally lagged petrol in price. Which is why when diesel became costlier than petrol in New Delhi on Wednesday, it raised a few eyebrows. The trend continued on Friday. The fuel, however, continues to be priced lower than petrol elsewhere in the country. In 2012, petrol was priced as much as Rs 28.95 a litre higher than diesel. Petrol price had been decontrolled by then. The annual consumption of diesel stands at around 83 million tonnes (mt), while that of petrol is at 30 mt. Here’s a look at the price and consumption data of the fuels over the past 18 years. SHINE JACOB