Now diesel gets dearer by Rs 5 per litre!

In an unprecedented move, diesel prices have been increased by a record Rs 5 per litre. The hike came into effect from midnight September 13, 2012.  Diesel in Delhi will now cost Rs 46.95 per litre from Rs 41.32 per litre after calculating 12.5 per cent VAT on it. At Rs 52.45 per litre, the fuel will cost the highest in Mumbai among all metros (see table below for city-wise prices).

For a diesel hatchback owner, who travels 40km daily and draws a mileage of 15-20kmpl from his car, the monthly fuel bill will shoot up by Rs 300 to Rs 400.

The diesel price hike is a first in 15 months and is part of the government’s efforts to plug the mounting fiscal deficit. However, the move could also put the brakes on the current diesel car rush and improve demand for petrol models. The hike has also reduced the gap between petrol and diesel fuels to Rs 21.51 in Delhi. Petrol prices were hiked by a steep Rs 7.50 per litre in late May 2012 but rolled back by Rs 2 later after public uproar.  Protests against the current diesel hike have already begun though this time the government appears to be in no mood to relent.

Also Read: Petrol price hike: All you want to know