In a significant move, petrol prices have been increased by 87 paise per litre and diesel by 91 paise per litre, marking the third hike in fuel prices in recent days. The revised rates came into effect from Wednesday morning, adding to the financial burden on consumers already grappling with high inflation.
Details of the Price Revision
State-owned oil marketing companies (OMCs) revised the prices of petrol and diesel across the country. The increase varies slightly across cities due to local taxes and freight charges. In Delhi, petrol now costs Rs 101.19 per litre, up from Rs 100.32, while diesel is priced at Rs 89.37 per litre, up from Rs 88.46. In Mumbai, petrol is retailing at Rs 107.26 per litre, and diesel at Rs 97.18 per litre.
Reasons Behind the Hike
The latest price revision is attributed to the rising trend in global crude oil prices. International benchmark Brent crude has been hovering around $85 per barrel, driven by supply concerns and geopolitical tensions. OMCs had been holding prices steady for several weeks but have now resorted to incremental hikes to pass on the increased cost to consumers.
Impact on Consumers
The consecutive price hikes have raised concerns among consumers and industry experts. The transport sector, heavily dependent on diesel, is expected to feel the pinch, leading to potential increases in freight charges. This could further fuel inflation, affecting essential commodities. Commuters using private vehicles are also feeling the strain, with daily travel costs rising.
Government Response
The government has not made any official statement regarding the price hike. However, officials indicate that the OMCs are adjusting prices in line with the market dynamics. The central government had reduced excise duty on petrol and diesel last year to provide relief, but state-level taxes continue to vary, impacting final retail prices.
Comparison with Previous Hikes
This is the third increase in fuel prices within a fortnight. Earlier, petrol prices had risen by 80 paise and 90 paise in two separate revisions. The cumulative increase has added over Rs 2.5 per litre to petrol and diesel prices, reversing some of the relief provided earlier.
Global Context
The fuel price hike is not unique to India. Many countries are witnessing a surge in energy costs due to the global economic recovery and supply constraints. The OPEC+ group has been gradually increasing output, but production cuts in some member countries have kept prices elevated.
Outlook
Analysts predict that fuel prices may remain volatile in the near term. Any further escalation in global crude prices could lead to additional hikes. Consumers are advised to brace for continued uncertainty in fuel costs. The government may consider further tax cuts if prices rise sharply, but fiscal constraints remain a challenge.
In conclusion, the latest fuel price hike adds to the economic pressures on households and businesses. With no immediate respite in sight, the focus remains on global crude oil trends and government policy responses.
