Diesel rate in Bengaluru surpasses the Rs 90/litre mark for the first time

Bengaluru: Fuel prices in the city have touched the peak. For the first time, diesel per litre surpassed the Rs 90 mark, whereas, the price of petrol is nearing Rs 100. Diesel was sold at Rs 90.27 per litre and petrol at Rs 97.37 on Monday.

Experts opine that such high fuel prices are likely to have an adverse impact on food supply and other commodities. This could further affect the lower-class and the middle-class people who are already suffering since the outbreak of the Covid-19 pandemic.

According to the records, diesel prices went up from Rs 64.41 per litre in March 2020 to Rs 90.27 now, which is a hike of Rs 25.9 in 14 months. In March 2021, price of the petrol was Rs 71.91 (Rs 25.4- increase at present).

In the midst of the lockdown, transporters are facing a double blow due to this. They state that due to the rise in transportation cost, the prices of essential commodities such as food grains and vegetables will also go up. They say that the Centre and the state government are not ready to lower taxes to stabilise fuel rates.

“Our expenses have increased by 30% after the fuel prices hike. Prices of essential items will be high in the coming days”, said GR Shanmugappa, general secretary, South Zone Motor Transporters Welfare Association. He also said that they will go on a strike after lockdown. “If we stop services, it will affect the supply of essential items. Many truckers are jobless due to a decline in demand. The government is not addressing our demands”, he added.

Transporters need the government to reduce toll, insurance and MV taxes. K Radhakrishna Holla, president of Karnataka State Travel Operators Association said, “We haven’t had any business for more than a year. How will we operate our vehicles if the diesel price continues to be on the higher side? IT companies are closed due to work-from-home arrangement, and the international travel and tourism sector is also affected. India has one of the highest fuel rates in the world. This increase is untimely and will hit us hard.”

Petroleum dealers are of the view that petrol and diesel consumption has declined in the state due to the lockdown and travel restrictions.

Our sales have reduced to 10-15% due to the pandemic, lockdown, rise in fuel prices and also less spending power of people”, said A Tharanath, vice-president of Akhila Karnataka Federation of Petroleum Traders.

Sources from the oil industry say that petrol rates have gone beyond the RS 100 mark in many cities in Rajasthan, Madhya Pradesh and Maharashtra. The fuel prices were raised 16 times by the oil marketing companies (OMCs) in May alone. Petrol and diesel rates are being revised every day.