Diesel prices hiked by Rs 25 per litre – Know how it will affect the common man

The price of diesel sold to bulk users has been hiked by about Rs 25 per litre in line with a near 40 percent rise in international oil prices, leading to a frenzy of sorts by this group at retail petrol pumps.

Price of diesel sold to bulk users has been hiked to Rs 122.05 per litre in Mumbai. This compares to Rs 94.14 a litre price of the same fuel sold at petrol pumps. In Delhi, diesel costs Rs 86.67 a litre at the petrol pump, but for bulk or industrial users it is priced at about Rs 115.

How will the hike in diesel prices affect the common man?

Indian bulk diesel buyers are snapping up diesel from retail stations as pump prices are cheaper than their bulk contract prices.

The bulk users such as state bus fleets and malls and airports use diesel for generating back up electricity. Though there is hardly any bulk or industrial user of petrol, diesel is widely used in industries.

The wide difference of about Rs 25 per litre between the bulk user rate and petrol pump price has prompted bulk users to refuel at petrol pumps rather than book tankers directly from oil companies.

State-run fuel retailers have not raised pump prices since November 4 despite a surge in global oil and fuel prices, although they continued to raise prices of direct sales for industrial or bulk clients in line with the terms of those contracts. Hence the increase in diesel prices sold to bulk users should not have any impact on the common man because they don’t fall in the category.

Sales of gasoil, which accounts for about two-fifths of India`s overall refined fuel consumption, surged to pre-pandemic levels in the first half of March, rising by 32.8% from a month earlier.

The surge in diesel sales is putting pressure on the country`s logistics and supply infrastructure, the spokesperson said, adding that Reliance is committed to meeting the demand of its retail customers and its export contracts, reported Reuters.