Diesel sales from Delhi, Rajasthan shift to neighbouring states due to price advantage
Cheap diesel is flowing from Uttar Pradesh, Haryana and Punjab to neighbouring Delhi and Rajasthan through legal and illegal routes, executives of oil marketing companies and petroleum dealers said. Both consumers and unscrupulous elements find a price difference of up to Rs 7 a litre lucrative enough, and diesel vehicles, particularly long-distance trucks save on an average up to Rs 5,000 on the fuel in a trip, they said. Pump prices of petrol and diesel across the country are market-determined and attract uniform central excise duty, but their prices differ from state to state because of wide variations in the local levies or value-added tax (VAT). In oil retail economics, diesel is the most important fuel in terms of revenue income for both dealers as well as the exchequer because of high sales volume compared to petrol, executives and dealers mentioned above said requesting anonymity.