Petrol, Diesel Prices Hiked Again; Second Increase in Less Than a Week

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Petrol and diesel prices were increased by around 90 paise per litre on Tuesday, marking the second fuel price hike in less than a week. According to industry sources cited by news agency PTI, petrol prices in Delhi rose to Rs 98.64 per litre from Rs 97.77 earlier, while diesel rates increased to Rs 91.58 per litre from Rs 90.67. The latest revision comes days after fuel prices were raised by Rs 3 per litre on Friday amid rising global crude oil prices linked to the ongoing West Asia conflict and disruptions around the Strait of Hormuz.

Fuel prices rise across major cities

In the national capital, petrol became costlier by 87 paise per litre, while diesel saw an increase of 91 paise.

Petrol (MS) Prices in Metro Cities

City Petrol Price (Rs/litre) Change Delhi Rs 98.64 +0.87 Kolkata Rs 109.70 +0.96 Mumbai Rs 107.59 +0.91 Chennai Rs 104.49 +0.82

Mumbai recorded petrol prices at Rs 107.59 per litre after a hike of 91 paise, while diesel rates climbed by 94 paise to Rs 94.08 per litre. Kolkata witnessed the steepest increase in petrol prices among the four metros, with rates rising by 96 paise to Rs 109.70 per litre. Diesel prices there increased by 94 paise to Rs 96.07 per litre.

High Speed Diesel (HSD) Prices in Metro Cities

City Diesel Price (Rs/litre) Change Delhi Rs 91.58 +0.91 Kolkata Rs 96.07 +0.94 Mumbai Rs 94.08 +0.94 Chennai Rs 96.11 +0.86

In Chennai, petrol prices rose by 82 paise to Rs 104.49 per litre, while diesel became dearer by 86 paise, taking the price to Rs 96.11 per litre. The latest increase marks the second upward revision in fuel prices within a span of five days.

Prices frozen since 2022

Retail fuel prices had largely remained unchanged since April 2022, except for a one-time Rs 2 per litre cut in March 2024 ahead of the Lok Sabha elections. Public sector oil marketing companies, Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, had suspended daily fuel price revisions in 2022 to shield consumers from global crude price shocks following Russia’s invasion of Ukraine. However, crude oil prices have surged again due to the continuing West Asia conflict. India’s crude basket averaged $USD 69 per barrel in February before rising sharply to nearly $113-114 per barrel in recent months. India imports nearly 90 per cent of its crude oil requirements, making domestic fuel pricing highly sensitive to international energy markets.

Government says no fuel shortage

The Centre has repeatedly said there is no fuel shortage or plan for rationing despite disruptions in global energy trade routes. “There is no need to panic. There are sufficient supplies. There is no rationing in place. It's not going to happen,” oil secretary Neeraj Mittal had said recently at the CII Annual Business Summit. Officials have said India currently holds around 60 days of fuel stocks and nearly 45 days of LPG inventories. CNG prices in Delhi-NCR were increased by Rs 2 to Rs 79.09 per kg, while Mahanagar Gas Limited had earlier raised CNG prices in the Mumbai region as well. On Sunday, IGL further raised the CNG prices by Re 1.

Oil firms under pressure

Earlier this week, petroleum minister Hardeep Singh Puri warned that state-run fuel retailers could face losses of nearly Rs 1 lakh crore in a single quarter if fuel prices were not revised amid elevated crude prices. Puri said public sector oil marketing companies were collectively losing around Rs 1,000 crore every day due to the widening gap between international crude prices and domestic retail fuel rates. RBI governor Sanjay Malhotra had also indicated earlier this week that fuel price hikes could become unavoidable if the West Asia conflict continued for a prolonged period. Prime Minister Narendra Modi has meanwhile urged citizens to reduce fuel consumption and adopt austerity measures to help conserve foreign exchange reserves.

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