Fuel Prices Rise Again: Petrol, Diesel Costlier by 90 Paise Per Litre
Petrol and diesel prices across the country registered another increase on Tuesday, rising by around 90 paise per litre. This marks the second hike in fuel rates in less than a week, adding to the financial burden on common citizens.
Latest Price Hike Details
The recent revision follows an earlier increase announced on Friday, when oil companies raised petrol and diesel prices by Rs 3 per litre. Here’s the breakdown:
| Fuel | Previous Price | New Price | Increase |
|---|---|---|---|
| Petrol (Delhi) | Rs 97.77/L | Rs 98.64/L | +87 paise |
| Diesel (Delhi) | Rs 90.67/L | Rs 91.58/L | +91 paise |
Why Are Prices Rising?
The price hikes come as global crude oil prices continue to climb beyond $100 per barrel, compared with earlier levels of around $70. The ongoing Middle East crisis has disrupted supply routes, particularly the Strait of Hormuz.
Key Factors
- Global Crude Surge: Brent crude has risen over 50% since the start of the conflict
- Strait of Hormuz Disruption: The key route responsible for ~20% of global oil supply has been affected for over 11 weeks
- Import Cost Increase: Rising global prices translate to higher costs for India’s oil marketing companies
Impact on Oil Marketing Companies
Retail fuel prices in India had largely remained unchanged since April 2022, apart from a one-time reduction of Rs 2 per litre each in petrol and diesel announced in March 2024 ahead of the Lok Sabha elections.
With global crude prices rising sharply, Oil Marketing Companies (OMCs) such as:
- Indian Oil Corporation
- Bharat Petroleum Corporation Limited
- Hindustan Petroleum Corporation Limited
…faced mounting losses of up to Rs 1,000 crore per day due to the gap between cost and retail prices.
Government Response
Sujata Sharma, Joint Secretary in the Ministry of Petroleum, stated:
“The Middle East crisis has been ongoing for over two and a half months, with conditions in the Strait of Hormuz still not normal. Refineries are functioning normally and the country has sufficient crude oil reserves.”
Earlier, RBI Governor Sanjay Malhotra had stated that the government may eventually have to raise petrol and diesel prices if the ongoing Middle East crisis continues for a prolonged period.
Relief for Consumers?
Despite the hikes, officials maintain that India currently holds adequate fuel reserves. However, sustained pressure from global markets may lead to further adjustments.
What Can Consumers Do?
With fuel prices expected to remain volatile, consumers can consider:
- Using public transport more frequently
- Carpooling to reduce fuel expenses
- Planning trips to minimize travel
- Exploring electric vehicle alternatives
- Maintaining proper tyre pressure for better fuel efficiency
Key Takeaways:
- Petrol and diesel prices rise by ~90 paise per litre
- Second hike in less than a week
- Global crude oil above $100/barrel
- Middle East crisis continues to impact supplies
- Oil companies were losing Rs 1,000 crore daily before hike
Stay informed about fuel price movements and their impact on your daily expenses.
