In the past five days, the petrol prices were cut cumulatively by Rs 1.38 per litre and diesel by 81 paise per litre in Mumbai. "However, in the last six to eight months, oil companies have increased the basic price on diesel by Rs 5 which is one of the reasons for the unprecedented surge", Utkal Petroleum Dealers' Association general secretary Sanjay Lath said.
According to Singhania, the price difference has caused a sharp drop of 50-60% in sale of diesel and 25 per cent in petrol in Delhi during the current quarter.
"Because of this disparity, many Delhiites are getting their vehicles filled from petrol pumps in the National Capital Region, particularly from neighbouring Noida, Ghaziabad and Gurugram". Petrol price had during this period risen by Rs 1.33 a litre. Delhi has the lowest tax rate among the four metro cities. The price for diesel in Kolkata was Rs 77.33 per litre and in Chennai, it was Rs 79.82 per litre.
The downward revision also comes on the back of multiple factors such as lower global crude oil cost and a strengthened rupee against the USA dollar.
Behera further informed that the base price of petrol was Rs 48.89 and for diesel it was Rs 44.72 in 2014 while in 2018 the base price of petrol stands at Rs 43.08 against Rs 48.21 for diesel. "The oil companies also stated that tough action will be taken against petrol pumps not on strike", he said in a tweet in Hindi. This is the first time after the announcement that the prices have come down. The strike that began at 6 am today will continue till 5 am on Tuesday.
There are about 400 petrol pumps in Delhi which also have linked compressed natural gas (CNG) stations and all of them will remain closed for almost 24 hours in protest from 6 am onwards on October 22 and remain closed till 5 am on October 23, it said.
All 400-odd petrol pumps along with linked CNG dispensing units in the national capital will remain shut on Monday, 22 October, in protest against Delhi government's refusal to reduce Value-Added Tax on fuels, the Delhi Petrol Dealers Association (DPDA) said in a statement. "The price reduction in UP and Haryana has led to a decline in sale of petrol by 20% and diesel by 30% in Delhi till October 15", the association's President Nischal Singhania told NDTV.
"Because of high price in Delhi and low prices in states like Uttar Pradesh and Haryana, customers are deserting the petrol pumps in Delhi, leading to a huge drop in sales", he said.