Patna: The impact of rising geopolitical tensions between the United States and Iran is beginning to be felt in Bihar, with petrol and diesel prices rising once again amid a sharp increase in global crude oil prices.
Fuel prices were revised upward on Friday, with petrol becoming costlier by 87 paise per litre and diesel by 91 paise per litre across several parts of the country.
In Patna, petrol prices rose from Rs 110.16 to Rs 111.11 per litre, while diesel prices increased from Rs 96.19 to Rs 97.14 per litre.
Third Fuel Price Hike in 10 Days
This marks the third increase in petrol and diesel prices in the last 10 days.
Officials said oil companies had earlier revised fuel prices upward earlier this week as well, reflecting continued volatility in international crude oil markets.
Crude Oil Prices Surge Amid Global Tensions
Energy market analysts attributed the latest fuel price hike to rising crude oil prices following escalating tensions in West Asia.
According to experts:
- Crude oil prices have surged from around $70 per barrel
- International prices have crossed the $100 per barrel mark in recent days
- Oil marketing companies are facing increased import and refining costs
India imports nearly 90% of its crude oil requirements from abroad, making domestic fuel prices highly sensitive to global market fluctuations.
Impact Likely on Household Budgets
Economists warned that repeated fuel price hikes could affect household budgets and contribute to inflationary pressure in the coming weeks.
Higher petrol and diesel prices are expected to increase:
- Transportation costs
- Prices of vegetables and fruits
- Grocery and essential commodity prices
- Public transport fares
- Auto-rickshaw and school transport charges
Farmers May Also Face Higher Costs
The increase in diesel prices is also expected to impact Bihar’s agricultural sector.
Farmers rely heavily on diesel-powered equipment including:
- Tractors
- Pumping sets
- Irrigation machinery
Experts said higher fuel costs could increase the overall cost of crop production and potentially affect food prices in the coming months.
How Petrol And Diesel Prices Are Decided
Fuel prices in India are revised daily by oil marketing companies based on international crude oil prices and currency exchange rates.
The final retail price includes several components:
- Cost of imported crude oil
- Refining and processing expenses
- Oil company margins
- Central government excise duty and road cess
- Dealer commission
- State government VAT or sales tax
Since VAT rates differ from state to state, petrol and diesel prices vary across cities and regions in India.
Oil companies update fuel prices every day at 6am.
