After nearly four years, India’s oil marketing companies (OMCs) announced a price hike on Friday ₹Diesel and gasoline costs 3 per liter as the conflict in the West has pushed oil prices to more than $100 a barrel.
Global oil prices have risen more than 50 percent since US-Israeli strikes on Iran on February 28 and Tehran’s subsequent retaliation that disrupted energy flows through the Strait of Hormuz.
Rising fuel prices
The price of petrol in the national capital has been increased to ₹97.77 per liter from ₹94.77 while diesel costs now ₹90.67 against ₹87.67 per liter earlier
Petrol and diesel prices are now the highest since May 2022. Rates vary from state to state due to differences in value added tax.
CNG prices in cities like Delhi and Mumbai have also been hiked ₹2 per kg.
The Union Finance Ministry has also imposed an export duty ₹3 per liter of petrol on Friday.
Read also | Oil companies hike petrol and diesel prices by ₹3 per litre
Are fuel prices expected to rise further?
Consumers can expect more increases soon as the government navigates the financial consequences of the war.
According to a Bloomberg report, citing sources, additional increases will be allowed to bridge the shortfall, but will be phased out to limit the blow to typical families.
Other ₹If oil prices remain elevated, a 2-4 jump is expected in the short term, the report said.
Check gas prices today
CityPetrol PriceNew Delhi ₹97.77 Calcutta ₹108.74 Bombay ₹106.68 chennai ₹103.67 Gurgaon ₹98.42 Noida ₹97.97 Bangalore ₹106.17 Bhubaneswar ₹104.16 Chandigarh ₹97.27Hyderabad ₹110.85Jaipur ₹107.75Lucknow ₹97.39 Patna ₹109.06 Thiruvananthapuram ₹110.68
Check diesel prices today
CityDiesel PriceNew Delhi ₹90.67 Calcutta ₹95.13 Bombay ₹93.14 chennai ₹95.47 Gurgaon ₹90.89 Noida ₹91.20 Bangalore ₹94.10 Bhubaneswar ₹95.71 Chandigarh ₹85.25Hyderabad ₹98.96Jaipur ₹93.03Lucknow ₹90.69 Patna ₹95.10 Thiruvananthapuram ₹99.45Read also | Indian consumers hit by fuel price hike may soon face another hike
Refineries are looking ₹15-20 per liter of hike
Public sector refineries have suggested that they have to add almost ₹15 to ₹20 per liter to meet the prevailing emergency, a Bloomberg report said. Government fuel retailers in India manage 90% of the nation’s stations and are technically autonomous in setting tariffs.
According to the government’s public sector OMC – Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd and Hindustan Petroleum Corp. Ltd – lost approx ₹20 per liter in petrol sales and around ₹100 per liter for diesel sales due to high crude oil prices and unchanged retail prices in India.
However, according to other estimates, the under-recovery from diesel sales is much smaller.
Read also | The government has imposed an export duty on gasoline, reduced duties on diesel, and the export of aviation fuel
Why were the prices increased?
The government has so far argued that Indian consumers have been protected from the surge in global oil prices following the West Asian war, even as retail fuel prices have risen in neighboring countries such as Pakistan, Nepal and Sri Lanka.
Petrol and diesel prices in India unchanged from March 2024 when rates were cut ₹2 per liter before the Lok Sabha elections. Although fuel prices are officially deregulated, day-to-day revisions by oil-selling companies are rare, given the political sensitivity of retail fuel prices.
In its monthly economic outlook for April, the Ministry of the Economy under the Ministry of Finance said that the pass-through of higher global energy prices to consumers is “inevitable” during a period of supply disruptions, as higher prices help moderate demand.
