Noida: The soaring diesel prices in Delhi have come as a boon for fuel stations in Noida. With diesel prices in the district cheaper as compared to the neighbouring national capital, dispensing stations have been able to get customers from Delhi, recording at least 20% additional sales.
While petrol is Rs 80.16 per litre in Noida, which is only Rs.0.93 dearer than Delhi (Rs 79.23), diesel prices in Noida as of Sunday was Rs.70.79, against Rs.78.27 in Delhi, leading to better sales in Noida and speedy recovery of losses faced due to the lockdown.
“Yes, sales are better and we are seeing more vehicles of Delhi registration numbers, especially since Friday. It’s obvious that a price difference of Rs.5 to Rs.7 matters a lot to customers. We are seeing an additional demand of 8,000-10,000 litres of diesel per day that accounts for about 15-20% rise. Sales at filling stations bordering Delhi are recording an even higher increase, of around 40-50%,” said Deepak Chauhan, manager, Indian Oil petrol pump, Sector 41 Noida.
Some petrol pump owners claim that the soaring prices in Delhi are helping them make up for the losses incurred due to the national wide lockdown in wake of the Covid-19 pandemic.
{{/usCountry}}Some petrol pump owners claim that the soaring prices in Delhi are helping them make up for the losses incurred due to the national wide lockdown in wake of the Covid-19 pandemic.
{{/usCountry}}“We are still recovering from losses. Even though there are not that many vehicles on the road, motorists are slowly returning. We have experienced an increase in sales and many new customers are from Delhi, particularly since the last two-three days, this has helped us a little with recovery of losses,” said Kapil Singh, manager, Shaheed Chaman Petrol Pump, Sector 52, Noida.
The Noida petrol pump association, however, observes that while the sale of diesel has risen due to the price difference in Delhi, the overall sales have been affected due to the continuous soaring prices of fuel.
“The price of diesel and petrol has been good every day for the past 15 days, but that is only because the price of diesel is high in Delhi. The petrol price before the lockdown was around Rs.75 which is now Rs. 80; customers are affected because of this surge as well,” said Sushil Gupta, general secretary, petrol pump association, Gautam Budh Nagar.
They differ in regions as respective state governments levy taxes at varying rates. With an additional value added tax (VAT) of 16% in Delhi, the price of both diesel and petrol are higher in the National Capital as compared to Uttar Pradesh. Fuel prices are decided by the central government. On Sunday, the price of diesel and petrol in Delhi were again hiked by 60 paise and 35 paisa, respectively, putting the cost of diesel at an all-time high.
The fuel stations in Delhi, especially those at areas bordering Noida have been suffering heavy losses. “The sale is almost nil and it’s even difficult to manage salaries of staff. The main reason is because the Delhi government has hiked VAT. Against a daily diesel sale of 40,000-45,000 litres, we are currently selling only 1,000 to 1,500 litres per day, as customers have diverted to Noida or Haryana,” said Sunil Verma, owner of a petrol pump in Mayur Vihar Phase 3 in Delhi, merely a few hundred metres from the Noida border.