Prices of petrol and diesel have been increased by Rs. 3 per liter by state-owned oil marketing companies (OMCs), marking the end of a period where prices were not adjusted for a considerable period of time. This hike comes as a direct reaction to the growing tension in West Asia. This tension has driven up the price of crude oil to above $100 per barrel, disrupting maritime shipping routes through the Strait of Hormuz.
The prices of petrol and diesel in New Delhi have risen to Rs. 97.77 per liter and Rs. 90.67 respectively. Likewise, in other major metropolitan cities such as Mumbai, the prices of petrol have risen to Rs. 106.68. In Kolkata, it is now available at Rs. 108.74. Prices of Compressed Natural Gas (CNG) have also increased by Rs. 2 per kilogram.
This move comes shortly after an appeal from the Prime Minister for citizens to be austere and economical. Prime Minister Narendra Modi called on Indians to use less fuel and hold off purchasing precious metals like gold in order to save their foreign exchange reserves.
According to industry reports, this price increase was unavoidable. IOC, BPCL, and HPCL have incurred huge losses in order to protect customers from international uncertainties. The Petroleum Minister, Hardeep Singh Puri, had reportedly stated that OMCs had incurred losses amounting to nearly Rs 1,000 crore per day on account of the rise in oil prices owing to regional unrest. Whereas the government had earlier cut down excise duties as a means to reduce their burdens, the widening difference between import prices and domestic selling prices has now rendered this price hike “financially unsustainable.”
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