Crude oil prices across the country have gone up again, with the oil marketing companies announcing a fresh hike in petrol and diesel prices from today. The revised version of the list hikes petrol and diesel prices by about 90 paise a litre, the second rise in only five days. The high fuel prices are likely to continue to affect household spending and transportation costs throughout the nation.
Petrol in Ahmedabad is now being sold at nearly ₹98.33 per litre, while the price of diesel has crossed ₹94.10 per litre. A similar price hike has been observed in a few other big cities such as Delhi, Mumbai, Kolkata and Bengaluru.
Earlier this month, fuel prices were already increased by almost ₹3 per litre. But in the wake of continued global crude oil price increases, state-owned oil firms have again increased retail fuel prices. The latest increase is driven by industry factors and geopolitical tensions, experts say.
International crude oil prices have steeply climbed because of the continuing worries about the supply drop in key oil-producing areas, as well as the tensions in West Asia. Higher-priced Brent crude recently breached the $100-per-barrel price mark, putting a strain on countries that import oil, such as India. India buys a significant amount of its crude oil, and if international crude oil prices go up, fuel prices will go up in India too.
But the escalation of fuel prices will have a direct impact on citizens’ lives, particularly in their everyday existence. An increase in petrol/diesel prices can result in the rise of transportation, delivery costs and the prices of essential commodities like vegetables, groceries and consumer products. The cost of public transport and logistics could also increase in the next few days.
Experts in the field of economics think that if fuel prices continue to rise, it may be a factor in inflation and pressure on middle-class and lower-income families. Moreover, small businesses and transport operators will also have to shell out more bucks for operations because of the high price of fuel.
In the meantime, citizens in several cities have said they are concerned about the rising cost of fuel. Many commuters reported they are having trouble getting to and from work due to the increased fares in such a short time. Many commuters said that the successive increases were making commuting increasingly difficult.
Fuel prices are adjusted by the oil companies in response to various changes in the world, such as fluctuations in foreign exchange rates, the change of crude oil prices, and state governments’ taxes on fuel. Fuel costs are different depending on the state, and fuel costs vary from city to city.
If global crude prices stay high in the coming weeks, there could be more price hikes for petrol and diesel in the coming days, experts warn. International oil markets and government decisions on fuel taxation and pricing policies are under close watch these days.
