In a significant move that has raised eyebrows across the capital, the prices of petrol and diesel in Delhi saw an immediate increase of Rs 3 per litre on Friday. This adjustment comes as the world grapples with escalating crude oil prices and supply disruptions linked to ongoing conflicts in West Asia.
The new price for petrol in Delhi now stands at Rs 97.77 per litre, up from Rs 94.77, while diesel is priced at Rs 99.67 per litre, a sharp rise from Rs 87.67. Other major cities in India are also feeling the impact of these hikes. Kolkata witnessed a petrol price increase of Rs 3.29 per litre, with diesel rising by Rs 3.11. In Mumbai, the price for petrol climbed by Rs 3.14 and diesel by Rs 3.11, while Chennai’s petrol and diesel prices saw increases of Rs 2.83 and Rs 2.86 respectively.
The backdrop to this price hike is the rising global crude oil prices, exacerbated by geopolitical tensions in the Middle East. As of Friday, the benchmark Brent crude was trading at around $106.6 per barrel, a dramatic increase from $78 per barrel on February 27, just before the onset of the conflict. These rising costs have put immense pressure on oil marketing companies in India, prompting them to pass on some of the financial burden to consumers.
Despite the financial strain on these companies, the Union government has announced it will not provide any immediate relief packages to state-run oil firms struggling under the weight of these rising costs. This decision has raised concerns about the concept of ‘under-recoveries’, which refers to the financial gap between the production costs of fuels and their retail selling prices. As the crisis in West Asia continues to unfold, many are left wondering how long these price increases will persist and what further implications they may have for ordinary citizens.
With inflation already a pressing issue for many households across the nation, the hike in fuel prices could have a ripple effect on the economy, leading to increased costs for transportation and essential goods. As citizens brace themselves for the impacts of these changes, the government’s stance on fuel pricing and support for oil companies remains a critical topic of discussion.
