Public sector oil marketing companies (OMCs) increased petrol and diesel prices by 90 paise per litre on Tuesday. This marks the second fuel price hike within a week. State-run oil firms are facing heavy financial pressure because of rising global crude oil prices linked to the West Asia crisis. After the latest hike, petrol in Delhi costs Rs 98.64 per litre, while diesel is priced at Rs 91.58 per litre. Fuel prices differ across states due to varying local taxes.
The latest increase came after Friday’s Rs 3-per-litre hike. That was the first major fuel price rise in more than four years. According to the Petroleum Ministry, the earlier hike reduced the daily losses of OMCs by nearly Rs 250 crore. However, companies still lose around Rs 750 crore every day on petrol, diesel, and LPG sales. Industry experts believe Tuesday’s increase will provide some relief, but losses may continue if global oil prices remain high.
Government officials and oil companies chose a gradual increase in fuel prices instead of a sharp one-time hike. They wanted to reduce the political and economic impact on consumers. Experts say a sudden rise in fuel prices could have increased inflation and triggered public backlash. Higher fuel prices also raise transportation, logistics, and production costs across several sectors.
Also Read: 8-Hour CBI Operation Targets Man Accused in NEET Paper Leak Scam
Petrol, Diesel Prices See Another 90-Paise Jump Within Days
Global crude oil prices have risen sharply because of the West Asia conflict and the closure of the Strait of Hormuz. India has secured crude supplies from alternative sources, but refiners still face higher import, shipping, and insurance costs. The Indian crude basket averaged around $70 per barrel last year. In April, it crossed $114 per barrel, increasing pressure on oil retailers and the country’s import bill.
The financial burden on OMCs has grown in recent months. Petroleum Minister Hardeep Singh Puri recently said that combined losses of the three state-run fuel retailers could reach Rs 1 lakh crore during the April-June quarter if prices remain unchanged. The government reduced excise duty on petrol and diesel in March to provide relief. Despite that move, oil companies continue to struggle with rising global energy costs.
Also Read: West Bengal Cabinet Led by Suvendu Ends Religion-Based Schemes in Key Decision