Diesel prices set to cross `100 soon

IT MAY be recalled that the price of one litre of petrol had breached the `100 mark on June 14.

After petrol, the price of a litre of diesel is all set to breach the Rs 100 mark in the state soon. On Monday, the price of diesel in a few districts in the state reached `99. Officials indicate that the price would hit Rs 100, just like petrol.

“The prices are going up just like petrol. But, despite the rise in the price, people are still consuming diesel. Most consumers who use diesel are auto, truck and heavy machinery operators. In some places, the price has risen marginally. But, in some districts, the price is close to `100,” said a petrol bunk attendant from Adilabad (Tirumala Filling Station), where the price of one litre of diesel is `99.86 per litre.

Not only the bunk staffers, even members of the Consortium of Indian Petroleum Dealers (CIPD) said the price of diesel was steadily rising. “In

Hyderabad, the price is

`97.96 per litre. If the user goes for the additive laced fuel like Turbo, the price would be higher,” said Rajiv Amaram, of the CIPD.

It might be recalled that the price of one litre of petrol had breached the

`100 mark on June 14 this year. At the time, it was reported that there were three parameters that were vital in deciding the price of fuel. The first was the oil company’s refusal to lose any profits. The second and third were the state and the Central government's reluctance to forgo their profits, he said.

“Petrol or any fuel is a compound tax collecting mechanism and it is a money-spinner for the government,” said Rajiv.