Rising Fuel Prices Add Pressure on Household Budgets
Petrol and diesel prices in India have been increased once again, with state-run oil marketing companies raising rates by nearly 90 paise per litre. This is the second fuel price hike within a week and comes just days after a ₹3 per litre increase announced earlier.
The fresh revision reflects the growing pressure on public sector oil companies, which have been facing heavy losses due to soaring global crude oil prices. India imports nearly 90% of its crude oil requirements, making domestic fuel prices highly sensitive to international market movements.
Why Petrol and Diesel Prices Are Rising
The increase in fuel prices has been linked to a sharp surge in global crude oil prices amid escalating tensions in the Middle East. Disruptions in shipping routes, particularly around the Strait of Hormuz, have pushed Brent crude oil prices above $100 per barrel.
Oil Minister Hardeep Singh Puri recently stated that government-owned oil marketing companies are losing around ₹1,000 crore every day due to the widening gap between retail fuel prices and international crude costs.
The latest price revision is aimed at reducing these under-recoveries and helping companies such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited manage their financial burden.
Updated Fuel Prices in Major Cities
After the latest hike, petrol and diesel prices in major cities have increased further:
- New Delhi: Petrol ₹98.64/litre, Diesel ₹91.58/litre
- Mumbai: Petrol above ₹107/litre
- Kolkata: Petrol above ₹109/litre
- Chennai: Petrol above ₹104/litre
Fuel prices vary from state to state due to differences in local taxes and transportation costs.
Impact on Consumers and Inflation
The back-to-back increases in petrol and diesel prices are expected to affect transportation costs, logistics, and the prices of essential goods and services. Since diesel is widely used in freight transportation and agriculture, the hike may contribute to higher inflation and increased costs for consumers.
Middle-class households, businesses, and farmers are likely to feel the impact as fuel expenses rise further.
Government Assures No Fuel Shortage
The central government has clarified that there is no shortage of petrol or diesel in the country. Officials have stated that India has adequate fuel reserves to meet demand and there is no need for panic buying.
However, experts believe that if global crude prices remain elevated, additional fuel price hikes may be introduced in the coming weeks.
