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Petrol, diesel prices increased amid supply concerns
The prices of petrol and diesel were on Friday increased with immediate effect amid rising global oil prices and supply concerns amid the conflict in West Asia.
In Delhi, the price of petrol increased by Rs 3 per litre to Rs 97.77 per litre from Rs 94.77 per litre. Diesel will cost Rs 99.67 per litre instead of Rs 87.67.
The price of petrol was increased by Rs 3.29 per litre in Kolkata, by Rs 3.14 per litre in Mumbai and Rs 2.83 per litre in Chennai.
Diesel would cost Rs 3.11 more per litre in Kolkata, Rs 3.11 per litre in Mumbai and Rs 2.86 per litre in Chennai.
The hike comes as oil marketing companies face mounting pressure with global crude prices continuing to rise amid the war in West Asia. Benchmark Brent crude was trading at $106.6 per barrel on Friday. The price of Brent was $78 per barrel on February 27, a day before the conflict started.
On Monday, the Union government had ruled out any immediate bailout package for state-run oil companies despite losses linked to the crisis in West Asia.
The clarification had come as concerns grew about under-recoveries, the gap between the cost of producing fuels such as petrol, diesel and liquefied petroleum gas and their retail selling prices.
Union Petroleum Minister Hardeep Singh Puri said on Sunday that oil companies were facing under-recoveries of about Rs 2 lakh crore, with losses of up to Rs 1 lakh crore projected in the current quarter.
Puri had said that oil companies were purchasing crude oil, gas and liquified petroleum gas at elevated international prices while continuing to sell fuels at unchanged retail rates to shield consumers, leading to losses of up to Rs 1,000 crore a day.
On Sunday, Prime Minister Narendra Modi urged citizens to revive some work-from-home practices adopted during the Covid-19 pandemic to reduce fuel consumption. It was among the measures he proposed to help the country withstand global economic uncertainties and supply chain disruptions amid the conflict.
Referring to the disruption around the Strait of Hormuz and rising energy prices, Modi said that imported petroleum products should be used “only as per need” to lessen the impact of the conflict on India’s economy.
India imports 88% of its crude oil needs and about half of its natural gas requirement. This mostly comes through the strait, which has been effectively blocked due to the conflict in West Asia.
Written by Nachiket Deuskar. Edited by Sara Varghese
Source: Scroll
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