The latest news from the capital is that the diesel prices in Delhi have gone up straight by Rs.7.10 per litre! The price of petrol has also increased but the increase in minor if compared to diesel. Petrol has received a price hike of Rs. 1.67 per litre!. According to the revised prices, petrol in Delhi now stands at Rs. 71.26 per litre and diesel cost is Rs. 69.39 per litre. The fuel petrol and diesel prices in Delhi have been hiked due to the increased Value Added Tax that the government has recently imposed on auto fuels.
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The diesel prices in Delhi have gone up because the fuel demand has been consistently low. India is going through a lockdown situation to fight against the global pandemic. Currently, we are in the third phase of the lockdown where several non-essential activities are now allowed in certain areas of the country. The earlier tax component on petrol was 27% which has been revised to 30%. The tax component on diesel is also the same for now. Earlier the tax component on diesel was 16.75%. The VAT now holds Rs. 16.26 per litre and Rs.16.44 per litre in the diesel and petrol prices in the capital respectively.
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The fuel prices in other metros like Mumbai, Bengaluru and Kolkata remain the same. The diesel prices in Delhi have been hiked due to the substantial drop in the fuel demand since March 2020 due to the lockdown. Diesel demand decreased by 24.23 per cent to 5.65 million tonnes, while Petrol sales dropped 16.37 per cent to 2.15 million tonnes. The government expects the fuel demand to rise as some of the activities have begun now. More activities will follow as the situation begins to normalise. The fuel prices are expected to drop when the lockdown gets over but will this end soon?
