Also Read - Amid Lockdown, LPG Prices Go Down Across Cities
We hate to be the bearers of bad news first thing in the morning, but the price of petrol has been hiked by Rs 3.14 as of midnight last night. This is the second major price hike in the last four months; the last one was of Rs 5. Also Read - Central Govt May Increase Duty on Petrol, Diesel Again to Fight COVID-19 Outbreak
The hike has been attributed to the international motor spirit price rise, and not to the rise of the dollar against the rupee. The price of other fuels remains the same, so the government is making a loss of Rs 6.50 on every litre of diesel and Rs 267 on every cylinder of domestic LPG. That adds up to Rs 263 crore every day. The total under recovery so far is Rs 61000 crore. Also Read - Domestic Demand For Petrol, Diesel Drastically Declines Even on Lower Retail Prices
If nothing else, rickshaw fares in B towns and suburbs where CNG isn't freely available will definitely increase. On a more relevant note to OnCars, we foresee a lot of people redoing their calculations on their daily driving that might just tip the balance even more in favour of diesel. Most car manufacturers in the hatch segments are selling 80 per cent diesel already – this latest hike will skew the ratio even more. Our advice? If you're driving very few kilometres, bargain hard for the petrol variants. There's discounts in store until the companies adjust their petrol/diesel manufacturing ratios. This applies to the used market for petrol cars as well – especially if the cars have a reputation for being thirsty.