Petrol Price Surges by 87 Paise Amid Latest Fuel Price Adjustment
Fuel Prices Rise Again, Adding to Pressure on Households and Businesses
Fuel prices in India rose for the third time in a week on Tuesday, with petrol becoming costlier by 87 paise per litre and diesel by 91 paise per litre. This latest revision comes as the country is grappling with higher transport and logistical costs due to the prolonged conflict in West Asia.
The Centre's decision to raise petrol and diesel prices by Rs 3 per litre across the country on Monday marked the second increase within a week. State-run oil marketing companies are battling mounting losses from soaring global crude prices and disrupted energy supply routes. The Centre has acknowledged that Indian oil firms are under severe financial stress due to elevated crude oil and liquefied petroleum gas (LPG) costs triggered by the ongoing war in West Asia.
The government has urged consumers not to engage in panic buying, assuring that supplies of petrol, diesel, LPG, and natural gas remain sufficient despite growing geopolitical tensions in the region. The Ministry of Petroleum and Natural Gas is closely monitoring the evolving situation, but officials have stopped short of indicating whether additional fuel price increases are imminent.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Rising Crude Oil Prices Pose Challenge to India's Foreign Exchange Reserves
India imports 85-90 per cent of its crude oil, making it vulnerable to fluctuations in global crude prices. The recent surge in crude oil prices is putting pressure on the country's foreign exchange reserves. Brent crude rose above $110 per barrel after gaining nearly 8% last week, while West Texas Intermediate (WTI) moved close to $107 a barrel.
| Metro | Petrol Price Increase (per litre) | Diesel Price Increase (per litre) |
|---|---|---|
| Kolkata | 96 paise | 94 paise |
| Other metros | 87 paise | 91 paise |
The rising fuel prices are affecting households and businesses across the country. In Kolkata, petrol prices increased by 96 paise, taking the retail price to Rs 109.70 per litre. Diesel prices in the city increased by 94 paise to Rs 96.07 per litre. The Centre has said it cannot predict when the next fuel price revision will take place, leaving many wondering what the future holds for fuel prices in India.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors should be cautious of potential price volatility in the energy sector due to global events.
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