KL Rahul dropped, Shubman Gill gets call for 3-match SA series

New Delhi, Jun 23: In an unexpected development, the pump price of diesel is all set to surpass the petrol price in the capital, making it the most expensive transport fuel for the first time in a long time.

Globally, diesel is priced slightly above petrol prices due to the very nature of the product that has a higher cost of production. But in India, due to the lopsided taxation structure, diesel attracts lesser of the tax between the two auto fuels keeping its prices lower than petrol for last several years.

Diesel is currently priced at Rs 79.40 a litre in the Capital, just 36 paise short of petrol price that is being retailed at Rs 79.76 a litre. Going by the trend of price movement in the two products for the last few days where diesel prices have consistently increased by 50-60 paise per litre while the daily increase in petrol prices have fallen to just 20 paise on Tuesday, it is set to surpass petrol prices in next few days.

"Diesel price movement is sharper in international market and if oil companies follow the global price trend, diesel prices will surpass that of petrol later this week. It will be after many years that this would happen and is expected to sustain for some time unless government changes the tax structure of the petroleum products again," said an oil sector expert from one of the big four audit and advisory firms asking not to be named.

Interestingly, even in India the base price of diesel is expensive than petrol. According to the Indian Oil Corporation (IOC), while the base price of petrol in Delhi currently comes to Rs 22.11 per litre, the same for diesel is higher at Rs 22.93 per litre (effective from June 16, 2020). This has been the case for a long time, but retail price of petrol can be higher than diesel due to central and state taxes.

What has now brought diesel prices to a whisker of petrol prices in the capital is the Delhi government's decision early May to increase the Value Added Tax on diesel from 16.75 per cent to 30 per cent and on petrol from 27 per cent to 30 per cent. This increased the retail price of diesel and petrol in Delhi by Rs 7.10 and Rs 1.67 a litre respectively. With Central taxes on the two products already reaching identical levels, the Delhi governments move hastened price parity between petrol and diesel.

Currently, the Central excise on petrol is Rs 32.98 a litre while that on diesel it is Rs 31.83 a litre. The VAT on petrol in Delhi is Rs 17.71 a litre and that on diesel is Rs 17.60 a litre.

While the movement of retail pricing is being seen with a sigh of relief by vehicle owners whose cars run on petrol, those buying the relatively expensive diesel cars are now repenting on their decision. The development is also being seen with caution by automobile companies who have spent millions to ramp up their facilities for diesel run vehicles. The expectation is that demand for such cars will now fall, causing more damage to companies where sales are already impacted due to persistent economic slowdown and now the spread of COVID-19 pandemic.

"The pricing development would push automobile companies to strategies being followed by companies in the western markets where diesel run cars are not sold on fuel pricing differential, but on overall make and quality that puts them ahead of petrol run cars," the expert quoted earlier.

Yes, but for commercial vehicle sector the rising price of diesel had not been welcomed. In fact, the commercial transport sector had time an again threatened strike against the move to raise fuel prices.

With petrol and diesel retail prices closing, the case for adultering fuel has also gone down much to the relief of vehicle owners.

New Delhi, June 21: Diesel prices rise to record high after 60 paise hike in rates, petrol up 35 paise; rates up by Rs 8.88 and Rs 7.97 in 15 days.

Petrol price in Delhi was hiked to Rs 79.23 per litre from Rs 78.88, while diesel rates were increased to Rs 78.27 a litre from Rs 77.67, according to a price notification of state oil marketing companies. 

In Bengaluru, petrol will be costlier by 37 paise at Rs 81.81 per litre, while diesel will cost 57 paise more per litre at Rs 74.43.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

The 15th daily increase in rates since oil companies on June 7 restarted revising prices in line with costs after ending an 82-day hiatus in rate revision, has taken diesel prices to a new high. The petrol price too is at a two-year high.

Over 63 per cent of the retail selling price of diesel is taxes. Out of the total tax incidence of Rs 49.43 per litre, Rs 31.83 is by way of central excise and Rs 17.60 is VAT. 

Petrol in Mumbai costs Rs 86.04 per litre and diesel is priced at Rs 76.69.

Prior to the current rally, the peak diesel rates had touched was on October 16, 2018 when prices had climbed to Rs 75.69 per litre in Delhi. The highest-ever petrol price was on October 4, 2018 when rates soared to Rs 84 a litre in Delhi.

When rates had peaked in October 2018, the government had cut excise duty on petrol and diesel by Rs 1.50 per litre each. State-owned oil companies were asked to absorb another Re 1 a litre to help cut retail rates by Rs 2.50 a litre.

Oil companies had quickly recouped the Re 1 and the government in July 2019 raised excise duty by Rs 2 a litre.

The government on March 14 hiked excise duty on petrol and diesel by Rs 3 per litre each and then again on May 5 by a record Rs 10 per litre in case of petrol and Rs 13 on diesel. The two hikes gave the government Rs 2 lakh crore in additional tax revenues.

Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), instead of passing on the excise duty hikes to customers, adjusted them against the fall in the retail rates that was warranted because of a decline in international oil prices to two-decade lows.

International oil prices have since rebounded and oil firms are now adjusting retail rates in line with them.

In 15 days of hike, petrol price has gone up by Rs 7.97 per litre and diesel by Rs 8.88 a litre.

New Delhi, Apr 8: Former Pakistan pacer Shoaib Akhtar on Wednesday proposed a three-match ODI series against arch-rivals India to raise funds for the fight against the Covid19 pandemic in both the countries.

The two nations have not played a full-series since 2007 due to the terrorist attacks on India by Pakistan-based outfits and the resultant diplomatic tension. They only play each other in ICC events and Asia Cup.

"In this time of crisis, I want to propose a three-match series in which for the first time, the people of neither country would be upset at the outcome of the games," Akhtar told PTI from Islamabad.

"If Virat (Kohli) scores a hundred, we will be happy, if Babar Azam scores a hundred, you will be happy. Both teams will be winners irrespective of whatever happens on the field," he said.

"You are bound to get massive viewership for the games. For the first time, both countries will play for each other. And whatever funds are generated through this can be donated equally to the government of India and Pakistan to fight this pandemic," added the 44-year-old.

No idea of logistics

With both countries in a lockdown amid the fast-spreading pandemic, the games can only be organised when things improve. However, Akhtar feels the sooner they are held, the better it would be but could not tell how the logistics of such an initiative would be worked out.

"Everyone is sitting at home at the moment, so there will be a massive following for the games. May be not now, when things start improving, the games could be organised at a neutral location like Dubai. Chartered flights could be arranged and the matches could he held.

"The whole world will tune into it, so much money can be raised to deal with this crisis. In difficult times, the character of the nation comes forward."

Start of a new era?

"It could even lead to resumption of bilateral cricketing ties and relations of both countries improve diplomatically. You never know," said the 'Rawalpindi Express'.

In these extraordinary times, Akhtar feels both countries should help each other. "We can only propose the matches. The rest is up to the authorities (to decide)."

India cricketers Yuvraj Singh and Harbhajan Singh were recently trolled for asking their social media followers to donate to Shahid Afridi's charity foundation which is doing its bit in Pakistan's fight against the deadly virus.

"It was inhuman to criticise them. It is not about countries or religion at the moment, it is about humanity," he opined.

India memories

Akhtar has spent a lot of time in India as a commentator. He fondly recalled his days in Mumbai during the World T20 in 2016, the last time he came to India for work.

"I am forever grateful about the love I have received from the people of India. For the first time I am revealing this, whatever I used to earn from India, I made a significant amount there, thirty percent of it, I used to distribute among the low income staff who used to work with me in the TV," he remembered.

Akhtar used to visit the city's slum areas with his face covered to hand out financial help to elder women there.

"From drivers, runners to my security guys. I took care of a lot of people. I was like if am earning from this country, I have to help my colleagues also.

"I also remember visiting slums of Dharavi and Sion in the wee hours to meet people I worked with," added Akhtar.