Patna: Amid sharp fluctuations in international crude oil prices and escalating military tensions in West Asia, state-run oil marketing companies on Tuesday increased petrol and diesel prices by around 90 paise per litre.
This is the second fuel price hike in less than a week. Earlier, fuel prices were increased by Rs 3 per litre on Friday.
Following the latest revision, petrol in Patna now costs Rs 109.57 per litre, up from Rs 108.67 per litre. Diesel prices have also risen from Rs 94.65 per litre to Rs 95.55 per litre.
Impact on Common People
The rise in diesel prices is expected to directly affect household expenses and transportation costs, potentially leading to inflation in essential commodities.
Transporters are likely to increase freight charges, which could make vegetables, fruits, grains, and other goods transported from different states more expensive.
The agricultural sector may also feel the impact as farmers will have to spend more on operating tractors and irrigation pumps, increasing overall farming costs and eventually pushing up food prices.
Public transportation fares, including buses, auto-rickshaws, and school buses, may also witness a hike in the coming days.
Why Have Fuel Prices Increased?
The primary reason behind the latest increase is the sharp rise in global crude oil prices. Before the Iran-US conflict intensified, crude oil prices were hovering around $70 per barrel. They have now crossed the $100 per barrel mark amid fears of supply disruptions due to growing geopolitical tensions in the Middle East.
Oil marketing companies have been under pressure because of rising import costs and widening losses. Industry officials indicated that the latest increase is aimed at partially offsetting those losses. Experts believe that if crude oil prices continue to remain elevated for a prolonged period, further hikes in petrol and diesel prices cannot be ruled out.
Oil Companies Facing Massive Losses
According to government estimates, public sector oil companies including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum have been facing heavy financial losses due to high crude oil prices in the international market.
Petroleum Ministry Joint Secretary Sujata Sharma said that oil companies were incurring losses of nearly Rs 30,000 crore every month on the sale of petrol, diesel, and LPG.
