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After petrol, diesel too crosses Rs. 100 in Ahmedabad

by TLA October 11, 2021
written by TLA October 11, 2021
After petrol, diesel too crosses Rs. 100 in Ahmedabad

Ahmedabad: There is no respite from surging fuel prices for the common man. A few days after petrol prices in Ahmedabad crossed Rs. 100 per litre, diesel price has also touched triple digits.

Business News

Diesel price crossed Rs. 100 per litre for the first time in Ahmedabad on Sunday following an increase of 38 paise. The price rose to Rs. 100.51 on Monday following another hike of 38 paise today. Diesel prices have gone up by Rs. 2.50 per litre in the last seven days, and are up by 25% in calendar year 2021. Diesel prices were around Rs. 80 a litre in January.

Last week, petrol prices had crossed Rs. 100 per litre in Ahmedabad, and touched Rs. 101 on Sunday. The price rose further to Rs. 101.29 on Monday morning, putting unprecedented financial burden on common man.

The increase in diesel prices has led to an increase in transportation costs, which would increase goods prices, and fuel inflation.

The Centre earns Rs. 32.90 as excise duty on one litre petrol and Rs. 31.80 on diesel, and the Gujarat government levies 20.1% VAT on petrol and 20.2% on diesel, which means its revenues go up as prices rise. The state government also levies a 4% cess on both fuels. However, both Centre and state have refused to lower levies on the two fuels.

International crude prices touched $83 per barrel last week, the highest in three years, and are up more than 60% this year.

Compressed Natural Gas (CNG), which is used in vehicles, and Piped Natural Gas (PNG) prices also went up sharply last week after city gas distribution companies revised prices following a hike in domestically produced natural gas.

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