New Delhi: The Center has again hiked fuel prices on Saturday, marking the third increase in less than 10 days.
Prices in Delhi:
Petrol prices in Delhi rose by 87 paise per litre, increasing from Rs 98.64 to Rs 99.51, while diesel prices were raised by 91 paise from Rs 91.58 to Rs 92.49 per litre.
Prices in Kolkata:
Following the latest fuel price hike, petrol prices in Kolkata rose to Rs 110.64 per litre, up by 94 paise and diesel now costs Rs 97.02 following a 95-paise hike.
Prices in Chennai:
In Chennai, petrol prices climbed by 82 paise to Rs 105.31 per litre. Chennai recorded an 87-paise increase, taking diesel prices to Rs 96.98 per litre.
Prices in Mumbai:
In Mumbai, petrol now costs Rs 108.49 after a 90-paise increase. The diesel prices rose by 94 paise to Rs 95.02 per litre. Fuel rates vary from state to state depending on the incidence of VAT.
The latest revision follows consecutive increases over the past week amid rising global crude oil prices and pressure on oil marketing companies.
The repeated hikes will severely impact transportation costs and household budgets, with further revisions likely if international crude prices remain elevated. Notably, the previous two price hikes have already elevated the prices of day-to-day life across the country.
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Commenting on price hike, Dr. Manoranjan Sharma, Chief Economist, Infomerics Ratings said that this is symptomatic of the worsening global energy crisis triggered by Middle East tensions and disruptions in the Strait of Hormuz.
"The hike will raise inflation by raising transportation and production costs, thereby increasing prices of essential goods," Sharma said.
According to the experts, the impact on foreign exchange reserves and fiscal stability due to the crude import is costing the economy heavily.
Despite the assurances from the government, social media is still abuzz about the possible price rise in petrol and diesel. Experts and economists believe that consumers will see the price of fuel rising by about Rs 10.
The anticipation pulls strength as Puri expressed a deep concern about the losses incurred by Oil Marketing Companies (OMCs). He revealed that OMCs are losing nearly Rs 1,000 crore every day, giving a support to the anticipations of the price rise.
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“If you look at the fiscal situation, if you look at the fact that my oil companies are losing Rs 1,000 crores every day, the under recovery is going to be Rs 1,98,000 crores. The losses are Rs 1 lakh crore, if you look at the quarter. In that context, how long can you keep it like this? Where is the oil? It used to be around USD 64 or USD 65. It has gone up to USD 115 in that basket,” Puri had said during the CII's event earlier this month.
In India, Oil Marketing Companies (OMCs) determine the prices of fuel such as petrol and diesel. The decision of the OMCs has a significant impact on the general price level as 90 per cent of OMCs are state-run and any decision has prior approval of the Union Government.
Ends.
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