First time, diesel is costing more than petrol in this particular city; know where

With fuel prices rising every day in the country, a rather odd situation has risen up in Odisha, where diesel prices have become higher than that of petrol in the last three days.

As per data, today, October 22, the price of diesel in Bhubaneswar was at Rs 80.40 per litre, which is marginally higher than that of petrol, which remained at Rs 80.27 per litre.

This is actually defying the trend which is currently running in the country as petrol is being priced higher than diesel in the country, because the latter attracts lower taxes and commissions, also a lower base price.

Responding to this situation, Utkal Petroleum Dealers Association general secretary Sanjay Lath said this was the first time the price of diesel had surpassed that of petrol in Odisha, reported PTI.

Another scenario to be looked at while seeing the fuel price dynamics in Odisha is the rise in the base price for diesel which is charged by oil companies from dealers excluding the tax, by approximately Rs 5, reported The Times of India.

Hence, the increase in base price has led to nullify the impact of lower dealer commissions and excise duty which is charged for diesel gets lower as well.

“This imbalance is mostly due to the faulty policy of the BJP-led NDA government in the Centre... There could be a tactical understanding between the central government and oil marketing companies,” said Odisha Finance Minister SB Behera, as quoted by PTI.

The fuel price rise, inspite of decreasing prices of crude oil in the international market can become a bone of contention for the ruling BJP, but the citizens can expect a cut in the prices as the elections of several states are approaching.

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