For the first time in four year, the Indian government has announced an increase of Rs3 per liter in petrol and diesel prices, triggering strong political and public reactions across the country.
The hike comes at a time when global crude oil prices remain volatile and India is facing pressure due to its growing energy needs.
According to a report by British news agency Reuters, Indian fuel dealers raised petrol and diesel prices by Rs3 per liter in an attempt to offset some of the losses caused by rising global crude oil prices.
India, the world’s third-largest importer and consumer of oil, is among the last major economies to increase fuel prices after shipping through the Strait of Hormuz was disrupted. The disruption followed US and Israeli actions against Iran.
India’s state-owned oil companies, including Hindustan Petroleum Corporation, Indian Oil Corporation, and Bharat Petroleum Corporation Limited, control more than 90% of the country’s over 103,000 fuel stations and usually set petrol and diesel prices jointly.
A spokesperson for Bharat Petroleum confirmed the price increase, while Indian Oil and HPCL did not immediately comment.
Under the revised rates, diesel in the Indian capital Delhi will now sell for Rs90.67 per liter, while petrol will cost Rs97.77 per liter. Previously, diesel was priced at Rs87.67 and petrol at Rs94.77 per liter, reflecting increases of 3.4% and 3.2% respectively.
Global crude oil prices had surged past $120 per barrel before falling back to between $100 and $105 per barrel.
