Petrol and diesel prices have hiked for the fourth time
The Modi government hiked fuel prices Monday for the fourth time in the past two weeks.
Petrol became costlier by Rs 2.61 per litre and diesel by Rs 2.71 per litre, adding to inflationary pressures on households and businesses.
With the latest revision, the cumulative increase in petrol and diesel prices has reached nearly Rs 7.5 per litre. In Delhi, petrol will now retail at Rs 102.12 per litre, while diesel will cost Rs 95.20 per litre.
According to sector experts, the latest fuel price hike will only partly offset the losses incurred by state-run fuel retailers, indicating that further increases in petrol and diesel prices may be needed in the coming weeks.
Investment Information and Credit Rating Agency (ICRA) estimates that at crude oil prices of $120-125 per barrel, and based on average crack spreads (difference between the price of raw crude oil and the petroleum products extracted from it) seen over the last decade, Oil Marketing Companies (OMCs) are still losing around Rs 700-800 crore every day on the sale of petrol, diesel and domestic LPG even after the latest fuel price increase.