Centre hikes petrol, diesel prices by Rs 3 per litre
So this one directly affects everyone. The Centre hiked petrol and diesel prices by Rs 3 per litre, with CNG also rising Rs 2 per kg. Petrol in Delhi is now Rs 97.77, diesel Rs 90.67. The reason? Oil marketing companies like IOC, BPCL, and HPCL had been absorbing losses from the global energy shock caused by the Iran-US conflict and the Hormuz crisis. For CLAT, this is an example of administered pricing in India's energy sector, and connects to the debate on fiscal impact of subsidised fuel. Remember that petrol and diesel are outside GST's scope, which is why prices vary state by state and any hike requires a deliberate government decision.
Petrol and diesel price hike in India:Petrol and diesel prices were raised by Rs 3 per litre each on Friday, with oil marketing companies passing on part of the recent surge in global energy prices to consumers. CNG prices were also raised by Rs 2 per kg.
Following the revision, petrol inDelhinow costs Rs 97.77 per litre, up from Rs 94.77, while diesel has climbed to Rs 90.67 per litre from Rs 87.67, according toPTI.
Across major metros, petrol prices saw similar increases. InKolkata, petrol is now priced at Rs 108.74 per litre, while inMumbaiit stands at Rs 106.68 and inChennaiat Rs 103.67. Diesel prices have also gone up, reaching Rs 95.13 per litre in Kolkata, Rs 93.14 in Mumbai, and Rs 95.25 in Chennai.
Despite higher costs, state-owned oil firms froze petrol and diesel rates for 11 weeks and raised prices only partially when finances turned unsustainable,PTIreported.
The increase is a 10th of the hike needed to account for the surge in global energy rates since the start of the West Asia conflict.
Prices have been frozen since April 2022, with just a one-time cut of Rs 2 per litre on both petrol and diesel in March 2024 ahead of the Lok Sabha polls.
Indian Oil, BPCL, and HPCL stopped daily price revisions in April 2022 to shield domestic users from sharp hikes after Russia’s Ukraine invasion sent global crude prices soaring. They faced steep losses in H1 of FY 2022-23 but recovered later as international rates eased.
However, the West Asia conflict has pushed global oil prices up by more than 50% again. India’s crude import basket, which averaged $69 per barrel in February before the war, rose to $113–$114 per barrel in the following months.