Amid rising fuel prices across India, Odisha has set a new record in the country with diesel becoming costlier than petrol. On Monday, diesel was selling at Rs 80.40 per litre, while petrol was at Rs 80.27 per litre. The price of diesel surpassed that of petrol for the first time in Odisha on Saturday. Usually, diesel prices are lower in comparison to petrol due to lower taxes, dealer commissions and lower base price.
However, in recent months, diesel base price, which is the price charged from dealers by oil companies without tax, has gone up by around Rs 5 because of higher global crude oil prices. Besides, state governments charge higher VAT on petrol than diesel, but Odisha charges a uniform 26 per cent VAT on both fuels. This has also led to this unprecedented situation.
The situation in the BJD-ruled state has fuelled a political blame game between the ruling party and the opposition led by BJP. The government blamed the faulty policies of the Centre for higher fuel prices, while BJP asked state government to cut VAT on fuel to give relief to consumers.