Petrol, diesel prices rise again: 4th hike in 2 weeks pushes Delhi petrol to ₹102.12, diesel to ₹95.20 | Today’s news
Petrol and diesel prices were hiked for the fourth time in less than 10 days on Monday, causing cumulative retail fuel prices to rise by ₹2.61-2.71 per liter on Monday, the fourth increase in less than two weeks, as state-owned firms continued to pass on rising international prices to consumers.
Diesel prices increased by Rs. 2.71 per liter and petrol by Rs. 2.61 per liter and petrol increased to ₹102.12.
With the latest revision, the cumulative increases in petrol and diesel prices are almost ₹7.5 per liter as the fuel rate revision was resumed on May 15 after a prolonged freeze.
Calcutta ₹113.51 (+2.87)
Chennai ₹107.77 (+2.46)
The gradual increases reflect efforts by state-owned oil marketing companies to shoulder the burden of surging international oil prices after retail fuel prices have held steady for a long period. The increase comes amid increased global oil prices, tightening refining margins and a weakening rupee, all of which have significantly increased India’s import costs.
State-owned fuel retailers such as Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd together account for nearly 90 percent of India’s retail fuel market.
The renewed fuel hike follows a surge in global oil prices of more than 50 percent since late February, triggered by US-Israeli strikes on Iran and the disruption of supplies through the Strait of Hormuz, one of the world’s most important oil shipping hubs.
After Saturday’s hike, petrol is now at a standstill at PSU pumps in Mumbai ₹111.21 per liter and diesel ₹97.83 and Kolkata prices are ₹113.51 in petrol and ₹99.82 in diesel, or In Chennai, the price of petrol is per ₹107.77 and diesel at ₹99.55.
Prices vary by state due to local taxes.
Will there be further increases in fuel prices?
Madan Sabnavis, Chief Economist, Bank of Baroda, earlier told Livemint that “given the losses incurred by OMCs, an increase in petrol and diesel prices was inevitable”.
He said more price hikes could follow as the current hike may not be enough to fully offset OMC’s losses.
Financial services company Emkay Global Financial Services estimates that petrol and diesel prices could rise by as much ₹10 per liter in the near future as oil companies try to offset the impact of increased global oil prices.
