Fuel prices in India increased on Tuesday, with petrol and diesel prices hiked again within a week, as crude oil prices remain elevated due to tensions in West Asia. State-owned oil marketing companies (OMCs) marked an increase in petrol and diesel prices in major cities by 90 paise, pushing transportation costs, inflation, and household budgets higher.
In Delhi, petrol prices rose from Rs. 97.77 to Rs. 98.64 per litre, while diesel increased from Rs. 90.67 to Rs. 91.58 per litre. The latest revision has come days after petrol and diesel were hiked by Rs. 3 per litre on Friday. It is the first major increase in fuel prices in over four years.
Petrol prices increased by 91 paise in Mumbai to Rs. 107.59, while diesel went up by 94 paise to Rs. 94.08 per litre.
The petrol prices were the highest in Kolkata, with the increase being 96 paise to Rs. 109.70 per litre. In the city, the price of diesel rose by 94 paise to Rs. 96.07 per litre.
In Chennai, petrol prices were up 82 paise to Rs. 104.49 per litre, and the price of diesel increased 86 paise to Rs. 96.11 per litre.
The latest fuel price change comes as Brent Crude remains above $110 per barrel due to persistent uncertainties surrounding the Strait of Hormuz
According to analysts cited by Reuters, a sustained rise in crude oil prices could have a cascading impact on retail inflation, transportation expenses and overall household budgets.
Despite a global price increase, India, the third-largest importer of oil, has delayed a retail fuel price hike for longer than most of the major economies.
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Despite recent increases, fuel retailers continue to face under-recoveries on fuel sales. OMCs, collectively, are estimated to be losing nearly Rs. 750 crore per day on petrol, diesel and LPG, according to estimates cited by The Times of India.
Industry experts cited by The Indian Express, the fuel retailers were previously losing around Rs. 14 per litre on petrol and more than Rs. 40 per litre on diesel earlier this month amid a sharp hike in oil prices.
Indian Oil Corporation director Arvind Kumar recently termed the increase a “very small rise” and said Indian refineries are operating at more than 100% capacity to ensure uninterrupted fuel supply across the country, The Times of India reported.