Petrol, Diesel, and CNG Prices Soar: Third Hike in Eight Days Hits Commuters Hard
Petrol, Diesel, and CNG Prices Soar: Third Hike in Eight Days Hits Commuters Hard
Fuel prices continue to rise across India as petrol, diesel, and CNG rates see their third hike in just eight days. Here is how the global oil crisis is affecting your pocket.
It is a tough week for commuters and transport operators alike as fuel prices in India have been hiked for the third time in just eight days. In the latest round of price revisions, petrol has become dearer by 87 paise per litre, while diesel prices have climbed by 91 paise. This follows a trend of staggered increases aimed at easing the financial burden on Oil Marketing Companies (OMCs) like Indian Oil, Bharat Petroleum, and Hindustan Petroleum.
The initial Rs 3-per-litre hike implemented on May 15 provided some breathing room for these companies, cutting their combined daily losses from approximately Rs 1,000 crore to about Rs 750 crore. However, industry analysts suggest that the gap between retail prices and market reality remains significant. Global crude oil prices have surged by more than 50%, driven largely by ongoing conflicts in West Asia and the closure of the strategic Strait of Hormuz. For nearly four years, retail prices had remained largely stagnant to protect consumers, but the government is now opting for a calibrated approach to pass on costs.
It is not just petrol and diesel users feeling the pinch. Compressed Natural Gas (CNG) prices have also been increased for the third time in under ten days, with a fresh hike of Re 1 per kg. In Delhi, CNG now costs Rs 81.09 per kg. This series of rapid increases has sparked protests among transport operators, who are now demanding immediate fare revisions and a rollback of fuel surcharges to keep their businesses viable.
Government officials indicate that the decision to implement staggered hikes rather than one steep increase was a strategic choice to contain balance sheet stress for OMCs while managing the impact on the public. Despite the recent hikes, experts estimate that there is still a residual under-recovery of about Rs 10 to Rs 13 per litre, suggesting that more price adjustments could be on the horizon in the coming weeks.
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