For first time, diesel costlier than petrol, Odisha dealers fear 50% loss

With Odisha becoming the first state in the country where diesel is costlier than petrol, dealers say they will lose 50 per cent of their highway business to their counterparts in the neighbouring states. 

On Monday, the per litre retail price of diesel in Bhubaneswar ranged between Rs 80.45 and Rs 80.69 while petrol was being sold at anywhere between Rs 80.32 and Rs 80.57 per litre.

Conventionally, the retail price of diesel is lower than petrol’s because of lower taxes, dealer commissions and base price. But the base price of diesel, which is the price charged from dealers by oil companies without tax, and the dealer’s commission has increased due to the growing demand for fuel. Sources said the base price of diesel has touched Rs 50.51 compared to that of Rs 46.49 for petrol.

“Because of lower VAT rates on diesel, rates of diesel in Odisha is dearer  by Rs 1 to Rs 3,” said Utkal Petroleum Dealers Association General Secretary Sanjay Lath.

"In Odisha, VAT rates are uniform (26 per cent) for both diesel and petrol. About 50 per cent of highway business of petrol pump dealers has shifted to other states. We have started the exercise on collating the data of the exact loss.”