Unexpected rise in diesel prices despite slower demand has put the transport sector at a big disadvantage as rising fuel cost has further shrunk its margins.

With 11 paise hike in diesel price in New Delhi today, the gap between the two auto fuels has further widened in the national capital. Last month, diesel prices overtook that of petrol in the national capital in an unprecedented development. Petrol prices have remained steady.

Diesel was priced at Rs 81.05 per litre today in the capital, higher than the previous level of Rs 80.94 a litre. Petrol prices, however, remained unchanged at Rs 80.43 a litre, the same level as June 29 when its pump price rose marginally by five paisa over previous day’s price.

Along with the Capital, diesel prices marginally increased in other metro cities as well, but there the price of transportation fuel is still between Rs 6-8 per litre lower than petrol.

Oil companies began daily revision of the two auto fuels from June 7 after keeping the price unchanged for last 82 days during Covid-19 related lockdown. Since then petrol and diesel prices have increased by Rs 9.5 – Rs 11.5 per litre respectively..