Global oil prices jumped after the US and Israel launched strikes on Iran on February 28, followed by a large-scale retaliation by Tehran that effectively closed the Strait of Hormuz. Oil, whose price hovered around $70 a barrel last year, averaged more than $114 a barrel at the end of April.
However, the Indian government said that the retail prices of petrol and diesel remained unchanged from the beginning of April 2022.
Last week, a senior petroleum ministry official said the state-run fuel retailers were facing losses of approx ₹20 per liter for petrol and almost ₹100 per liter of diesel due to flat retail prices for almost four years, despite a rise in international oil rates.
Notably, state-owned oil companies have made substantial profits when global oil prices have been largely subdued over the past few years and retail fuel prices have remained largely stagnant.
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On Friday, the Indian Oil Corporation (IOC) said on behalf of the industry that petrol and diesel prices would remain unchanged despite rising global energy costs.
However, government sources told PTI that a rise in petrol and diesel prices cannot be ruled out in the near future.
Gasoline and diesel prices rising?
On Wednesday, a Press Information Bureau (PIB) post dismissed social media claims of an alleged government order to “increase petrol and diesel prices by ₹10 a ₹12.50 respectively”.
“The order circulating on social media claims to have been issued by the Ministry of Petroleum and Natural Gas stating that petrol and diesel prices have been increased by ₹10 a ₹12.50 respectively,” PIB said on X. adding, “This order is #FAKE. No such order has been issued by Govt of India.”
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Check the price of gasoline today in your city
CityPricePrice changeNew Delhi ₹94,770.00 Calcutta ₹105.41-0.04 Mumbai ₹103 540 00 Chennai ₹101.06 + 0.26 of Gurugram ₹95.30-0.27 Noida ₹94.77-0.03 Bengaluru ₹102 960 00 Bhubaneswar ₹101.03 + 0.05 Chandigarh ₹94 300 00 Hyderabad ₹107 460 00 Jaipur ₹105.03-0.37 Lucknow ₹94.73-0.04Patna ₹105 230 00 Thiruvananthapuram ₹107,480.00Read also | No change in ATF price for domestic airlines; Gasoline, diesel, LPG rates stable
“When oil prices soared…”
Hardeep Singh Puri, Union Minister for Petroleum and Natural Gas, said on Friday that India has expanded its oil sourcing base to 41 countries from the earlier 27, as part of efforts to boost energy security amid the global energy crisis.
He said this long-term planning played a key role in managing the crisis.
“Because the preparations made over the last 10 years, decades, came into play exactly when they were needed. We have diversified our resources; raw resources have now expanded from 27 countries to 41,” he said.
Puri also highlighted steps taken to protect consumers from rising global prices.
“When oil prices spiked, our oil marketing companies made a clawback that would normally translate into a direct retail increase. Excise duty was reduced, export duties were used to keep Indian products in Indian markets,” he said.
Referring to the current fuel prices, he added: “The effect is visible. By the end of April, petrol in Delhi remains at ₹94.77 per liter and diesel at ₹87.67 per litre.”
