In a significant move that has added to the financial burden of consumers, oil marketing companies (OMCs) have raised petrol and diesel prices for the third time in the last ten days. Effective from the morning of October 4, petrol prices have been hiked by 87 paise per litre, while diesel prices have gone up by 91 paise per litre. This latest revision has pushed fuel rates to record levels in several cities across India.
Fuel Prices Reach New Highs
With this increase, the price of petrol in Delhi has crossed the Rs 84 per litre mark, while diesel is now priced at over Rs 74 per litre. In Mumbai, petrol is retailing at over Rs 90 per litre, and diesel has surpassed Rs 80 per litre. Other metropolitan cities have also witnessed similar hikes, causing concern among commuters and businesses alike.
Reasons Behind the Price Hike
The continuous rise in global crude oil prices is being cited as the primary reason for the frequent revisions. International crude oil benchmarks have been trading at elevated levels due to supply constraints and recovering demand. Additionally, the depreciation of the Indian rupee against the US dollar has made imports more expensive, further pressuring domestic fuel prices.
Impact on Consumers and Economy
The repeated price hikes are expected to stoke inflationary pressures, as higher fuel costs lead to increased transportation and production expenses. This, in turn, could raise the prices of essential commodities and services. Consumers are already feeling the pinch, with many calling for a reduction in excise duties and value-added tax (VAT) to provide relief.
Government and OMC Response
While the government has not announced any immediate measures to curb the price rise, it has stated that it is monitoring the situation closely. OMCs have defended the hikes, stating that they are necessary to align domestic prices with international rates and to cover their costs. However, opposition parties have criticized the government for not intervening to protect consumers.
Future Outlook
Analysts predict that fuel prices may continue to rise in the near term if global crude oil prices remain elevated. The government may consider reducing excise duty or urging states to cut VAT to provide some respite. However, with the festive season approaching, consumers are hoping for some relief from the relentless price increases.
