Fuel Prices Hiked For Fourth Time By 80 Paise Per Litre, Gadkari Says Russia-Ukraine Conflict Responsible

Petrol in Delhi will now cost Rs. 98.61 per litre as against Rs. 97.81 previously while diesel rates have gone up from Rs 89.07 per litre to Rs. 89.87.

New Delhi: The prices of petrol and diesel were hiked by 80 paise each litre each on Saturday making it the fourth increase in five days as oil firms passed on to consumers the spike in the cost of raw material.

Petrol in Delhi will now cost Rs. 98.61 per litre as against Rs. 97.81 previously while diesel rates have gone up from Rs 89.07 per litre to Rs. 89.87, according to a price notification of state fuel retailers. In four increases, petrol and diesel prices have gone up by Rs. 3.20 a litre.

All the four increases since the ending of a four-and-half-month long hiatus in rate revision on March 22, have been of 80 paise a litre. These increase increases are the steepest single-day rise since the daily price revision was started in June 2017.

CRISIL Research said  Rs. 9-12 per litre increase in retail price will be required for a full pass-through of an average USD 100 per barrel crude oil and ₹15-20 a litre hike if the average crude oil price rises to USD 110-120.

Oil companies "will need to raise diesel prices by ₹13.1-24.9 per litre and ₹10.6-22.3 a litre on gasoline (petrol) at an underlying crude price of USD 100-120 per barrel," according to Kotak Institutional Equities.

Fuel Price Hike Beyond India's Control: Nitin Gadkari 

Union Minister Nitin Gadkari said that the fuel price had risen thrice in the last four days because of the war in Russia and Ukraine. This has led to a rise in prices in the international market which is beyond India's control. 

The Minister for Road Transport and Highways said, "In India, 80 per cent of energy is imported. Amidst the ongoing war between Russia and Ukraine, the prices of fuels have spiralled up in international markets and we cannot do anything about that. But, what I am talking about since 2004 is that India needs to become self-reliant. We need to make our own fuel."

Petrol and diesel prices were hiked by 80 paise a litre each on Friday, the third increase in four days, as oil firms recoup losses from holding rates during the period prior to the recently-concluded assembly elections.

These hikes are the steepest single-day rise since the daily price revision began in June 2017. With three increases beginning March 22, petrol and diesel prices have gone up by Rs. 2.40 a litre, and similar hikes are to follow. 

(With Agency Inputs)