Indian Oil companies yet again hiked prices of petrol and diesel. This comes as the 5th increase in prices in less than a weeks time. Petrol and diesel will be costlier by 50 paise and 55 paise, respectively.
On comparison with the last week, petrol and diesel prices increased by ₹ 3.70-3.75 per litre. In the National Capital, A litre of petrol will now cost ₹99.11 while diesel at ₹90.42.
The hike in prices came at a time when the Indian Government is facing pressure from the west against its purchase of cheap Russian oil. According to a news piece published by PTI, the government had not raised the prices since about four and a half months keeping in the view of the state elections.
As per industry experts, the main reason of these hikes in quick succession can be attributed to the Russia-Ukraine war. In last 4 and a half months, since when the prices were not increased, the fuel prices in the international market had gone up by a 30 dollars per barrel.
India’s reliance on imported fuel is at about 85% and hence the oil companies keep adjusting the fuel prices as opposed to the subsidy given earlier on petrol and diesel have stopped since 2010 and 2014 respectively.
It shouldn’t come as a surprise if government again increases fuel prices, as per a study by CRISIL, a further ₹ 9-12 per litre increase in retail price will be required to absorb the impact of global fuel price increase.