The impact of a surge in diesel prices on the fuel's usage in some sectors

Even if we take the increase in prices in Delhi from June 7 till now, a hike of Rs 11.14 will increase the cost for the transport sector by Rs 2,665 cr, for farm sector by Rs 1,053 cr and for private

On June 25, the price of diesel crossed that of petrol for the first time in Delhi, with the heavier fuel retailing in Delhi for Rs 79.88 per litre compared to Rs 79.76 for petrol. On July 1, diesel was retailing at Rs 80.53/litre compared to Rs 80.43 for petrol.

A major reason for the prices in Delhi can be attributed to the state government’s value-added tax. In other cities diesel continues to be retailed very slightly lower than petrol.

However, central excise duties also play a substantial role in keeping the prices elevated, even though global crude prices remain