After falling by 6 pascals at a price of 100 rupees per liter for two consecutive days and reporting to 99.94 rupees, today’s interest rate hike-the 15th liter in May 2021-brought gasoline prices to over 100 rupees and reached 100.19 rupees in Mumbai. Meanwhile, the diesel price in Mumbai today is 92.17 rupees per liter.
- The price increase of diesel is greater than the increase of gasoline
- In the past 15 months, the price difference between gasoline and diesel has dropped from 10.09 rupees to 8.02 rupees
- Taxes account for 58.60% of gasoline prices and 52.85% of diesel prices
Since January 1, 2021, the price of gasoline in Mumbai is 90.30 rupees per liter, and gasoline has risen by 9.89 rupees per liter. From April 2020, when the BS6 era began, its price increased by Rs 24.91 per liter. In the other three metropolises of Mumbai, Delhi, Chennai and Kolkata, the price of gasoline per liter for motorists is 6.25 rupees, 4.68 rupees and 6.22 rupees per liter, respectively.
Those who use diesel as fuel (which was once called “the fuel for ordinary people”) are not immune. In fact, the price increase of diesel is higher than that of gasoline. In Mumbai, today’s price increase has increased diesel prices by 30 pasas and fuel prices have risen to 92.17 rupees per liter. The price in Delhi increased by 28 paisa (84.89 rupees), the price in Chennai increased by 26 paisa (89.65 rupees), and the price in Kolkata increased by 28 paisa (87.74 rupees).
The price difference between gasoline and diesel was 10.09 rupees 15 months ago (April 1, 2020) and has now fallen to 8.02 rupees in Mumbai.
Consumers now spend more money to travel the same distance
These wallet-damaging fuel prices hit Indian motorists very badly-two, four or more wheels. For example, the owner of a refueling commuter motorcycle like Hero Splendor has an 11-liter fuel tank and he will pay 828 rupees to refuel on April 1, 2020. Now, it took him 1,102 rupees (274 rupees more than before) to walk the same distance.
Speaking of cars, Mumbai’s gasoline engine Maruti Wagon R has a 35-liter fuel tank and will pay Rs 3,506.65 for the fuel tank today, compared to Rs 2,634.80 on April 1, 2020 – a considerable difference of Rs 871.85. At the same time, to refuel Hyundai Creta diesel with a 50-liter fuel tank, users must pay Rs 4,558.50 in Mumbai today, compared to Rs 3,259.50 on April 1, 2020 less than 15 months ago-the difference. It is Rs 1,299.
As far as commercial vehicles are concerned, the continued increase in diesel prices will severely impact their profitability. TCO-total cost of ownership-formula has reached 6. Already severely affected by the economic downturn and lack of business caused by COVID-19, owners of medium and heavy commercial vehicles (MCV and HCV) and even small CVs will be forced to adjust their business models. For example, a 37-ton Tata truck (such as LPT 3718) has a 400-liter fuel tank. In April 2020, a full diesel fuel will cost car owners 26,076 rupees in Mumbai. Now, at the end of May 2021, every time the truck is refueled, he must pay 36,868 rupees for the same amount of diesel, but 10,792 rupees more.
High fuel tax
One of the reasons for the sharp drop in gasoline prices is the high central and state taxes. For example, in Delhi, it is estimated that 35.53% of every liter of gasoline is levied as a “consumption tax” of the central government, while the tax rate imposed by the state is 23%. In total, taxes accounted for 58.60% (or 55 rupees) of gasoline prices in the capital. Similar to diesel-the central tax accounts for 38.21% of the price, and the state value-added tax accounts for 14.64% of the retail price. The accumulated tax accounted for 52.85% of the consumer’s final retail price, or 44.86 rupees.
Since the election process in the five states ended, and since the end of April, fuel prices have continued to grow. In the past two months, motorists have seen a gratifying halt to the increase in fuel prices, but now it seems that they are taking revenge. At a time when social distancing means more people start personal travel, everyone feels the impact.
Moreover, with the rapid increase in diesel prices, the impact on overall inflation can be seen. According to the report, according to the wholesale price index (WPI), the inflation rate rose to 10.49% in April 2021, and fell by 1.7% in April 2020.
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