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Bhubaneswar earns uncanny distinction as diesel costs more than petrol

“It is the responsibility of the Union government to see that the price of fuel is reduced, but instead of controlling the oil price, they are indulging in politics and misleading people,” he alleged.

Bhubaneswar earns uncanny distinction as diesel costs more than petrol

Never before has diesel been costlier than petrol. (Representational Photo: Getty Images)

Fuel prices have created a record of sorts in Odisha with diesel selling at a higher price than petrol over the last four days.

The retail price of diesel per litre is Rs 80.45 while petrol is being sold at Rs 80.32 in Bhubaneswar.

Never before has diesel been costlier than petrol.

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Retail outlet association members said it is time that VAT on diesel, which is at 26 per cent, should be reduced. The VAT is same on diesel and petrol in Odisha, they noted, while lamenting that filling stations along the NH in Odisha are already witnessing a 50 per cent drop in the sale of diesel.

Transporters are filling at neighbouring states where diesel costs less, they said.

State Finance Minister Sashi Bhusan Behera said diesel costs more than petrol in Bhubaneswar due to the high base price.

Behera blamed the central government and the Oil Marketing Companies. The base price of petrol was Rs 43.12 per litre on October 5. It was increased to Rs 44.43 on October 16.

Behera said, against an increase of Rs 1.04 per litre on the base price of petrol, within a period of 11 days, the base price of diesel was increased by Rs 2.33 per litre during the same period from Rs 46.53 to Rs 48.86.

He said while the petrol price was reduced by Rs 1.08 per litre from Rs 44.16 to Rs 43.08 from October 17 to October 22, the diesel price was reduced by Rs 0.65 per litre during the same period from Rs 48.86 to Rs 48.21 per litre.

The Finance Minister said the Union government has increased the tax on oil products by 330 per cent since it came to power in 2014 whereas all the states put together have increased tax by 30 per cent during the same period.

“It is the responsibility of the Union government to see that the price of fuel is reduced, but instead of controlling the oil price, they are indulging in politics and misleading people,” he alleged.

“Clearly, the BJP led government at the centre has made a mess of the economy as well as the fuel prices,” he remarked.

Petroleum Minister Dharmendra Pradhan, however, rubbished Behera’s remarks as “nonsense.”

“Why did Odisha not reduce prices when several states did so? Isn’t the Odisha government earning over Rs 7000 crore by imposing VAT on fuel,” he asked.

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