South Africa tour of India 2019
Petrol and Diesel Price Hike Likely Amid Rising Global Crude
Fuel prices in India may soon rise as global crude oil rates surge due to geopolitical tensions. Government sources indicate that state-run oil companies are facing mounting losses, raising the possibility of a long-awaited price revision.
Companies like Indian Oil Corporation have stated that retail prices of petrol, diesel, and LPG have not been increased despite rising international costs. However, prices of commercial LPG and aviation fuel have already been adjusted.
The surge in crude oil prices is linked to escalating tensions in West Asia, particularly after military actions involving the United States and Israel against Iran. Iran’s retaliation reportedly disrupted the Strait of Hormuz, a critical global oil transit route handling nearly 20% of the world’s oil supply.
Officials revealed that oil companies are currently losing about ₹20 per litre on petrol and up to ₹100 per litre on diesel. Despite these losses, prices have remained unchanged since April 2022. Analysts had earlier predicted a potential hike of ₹25–₹28 per litre after the West Bengal elections.
Crude oil prices, which averaged $70 per barrel last year, have now surged beyond $114. While companies previously offset losses during periods of lower prices, the current scenario is more challenging.
With global uncertainty continuing, consumers may soon feel the impact at fuel pumps unless government intervention stabilizes the situation.
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