Fuel Price Hike: The Burden of Global Conflicts

In a significant move, the state-owned oil firms have increased petrol and diesel prices by Rs 3 per litre, ending a four-year pause on rate changes. This decision comes amidst the global energy crisis intensified by the ongoing conflict in West Asia, pushing international oil prices higher.

The upward revision now places petrol at Rs 97.77 per litre in the national capital, while diesel costs Rs 90.67 per litre. Industry sources indicate that this hike is merely a fraction of the necessary adjustment to align with the soaring global energy rates.

The four-year hiatus in price hikes was aimed at shielding consumers from external price shocks. However, the recent surge in international oil prices, following the West Asia conflict, made the situation financially unsustainable for oil firms, prompting this partial increase.

(With inputs from agencies.)