The recent increase in petrol and diesel prices by Rs 3 per litre has been described as a 'small rise' by Indian Oil Corporation Limited (IOCL) Director (Refineries) Arvind Kumar. He assured that refineries are operating at over 100% capacity to maintain uninterrupted fuel supplies at petrol pumps across the country.
Price Revision Details
The government raised petrol and diesel prices by Rs 3 per litre nationwide on Friday. In Delhi, petrol prices increased from Rs 94.77 to Rs 97.77 per litre, while diesel rates moved up from Rs 87.67 to Rs 90.67 per litre. Other metro cities also witnessed similar revisions. Petrol prices climbed to Rs 108.74 in Kolkata, marking an increase of Rs 3.29, while Chennai saw a rise of Rs 2.83 to Rs 103.67 per litre. In Mumbai, petrol prices went up by Rs 3.14 to Rs 106.68 per litre.
Diesel prices also moved higher across major cities. Mumbai recorded diesel prices at Rs 93.14 per litre after a Rs 3.11 increase, Kolkata saw rates rise by the same amount to Rs 95.13, while Chennai diesel prices climbed Rs 2.86 to Rs 95.25 per litre.
IOCL's Response
Commenting on the fuel price revision, Arvind Kumar told ANI that the hike was relatively small despite mounting global pressures. He stated, "It's a very small rise, and you know a lot of pressure is there. But I can tell you that Indian Oil's Group companies, 10 refineries are working round the clock and more than 100% capacity so that there will be no crisis, no dry out at any of our retail outlets....let us come together to save fuel and in this emergency time and this critical time."
Context of the Price Hike
The latest increase in petrol and diesel prices represents only about one-tenth of the price revision considered necessary to fully offset the sharp rise in global energy costs following the outbreak of the West Asia conflict, according to a PTI report. Sources indicate that state-run oil marketing companies had avoided raising fuel prices for nearly 11 weeks despite a steep jump in input expenses. However, once the financial burden became difficult to sustain, they were forced to pass on a portion of the higher costs to consumers.
Petrol and diesel prices had largely remained unchanged since April 2022, except for a one-time cut of Rs 2 per litre on both fuels in March 2024 ahead of the Lok Sabha elections.
