Diesel Price Increased By Rs 25/Litre For These Buyers: How Will This Impact Retail Consumers?
For bulk users of diesel, such as public transport buses, trains, industries, airports and malls the price of diesel was hiked by Rs. 25 per litre on Sunday.
This move has raised the operational costs by 27% for such users, said sources in the oil marketing companies. The price hike is a repercussion of the recent rise in global crude oil rates due to the Russia Ukraine war.
Diesel prices not hiked for residents
However, for common residents in Mumbai, the price of diesel, however, has been the same at Rs 94.14 per litre for 136th day in a row and the price of petrol has consistently been Rs. 109.98 per litre.
BEST and MSRTC are not raising bus fares yet
Sources in BEST, which operates bus services in Mumbai, and MSRTC, which runs buses all across Maharashtra, have stated that they will either take on the hike burden or send some of their buses to private retail pumps to fill the bus up with diesel as the prices will be cheaper in comparison with bulk user prices which is around Rs 120/litre.
Other bulk users will also be affected
The railways are also going to experience the effects of the hike to some degree as the railways run on diesel engines. According to sources, other bulk users that will be impacted are industries that use bulk diesel, as the inflation in their input costs may lead to a hike in manufacturing prices of the goods. Others hit by the price hike include malls and airports as they use huge quantities of diesel for generating back up electricity, said sources.
BEST owns 185 single-decker buses and 45 double-deckers which run on diesel. BEST has come to the decision of running fewer buses on diesel during the weekends when the demand is already low.
A senior official of the MSRTC stated that most of their 18,000 buses run on diesel, but they are planning to switch to CNG and electric buses to lower operational costs in the future.
The cost of running a BEST bus on diesel is Rs. 40 per km (and it will now shoot up to around Rs 50) in comparison the cost of running CNG buses comes to Rs. 26 per km while an electric bus costs as low as Rs. 9 per km.