Fuel Price Hiked Again, Petrol Price In Delhi Inches Up To Rs 100 Per Litre

New Delhi, May 23 (KNN) Oil marketing companies (Oilcos) have yet again increased pump prices of petrol and diesel, the third hike within 10 days as global crude oil prices continue to stay above US$100 a barrel amid West Asia conflict.

In the latest round, petrol and diesel prices have been raised by about 91 paise.

With this, petrol price in Delhi now costs Rs 99.51 per litre. Diesel price has jumped to Rs 92.49 a litre. In Kolkata, motorists have to pay Rs 110.64 for a litre of petrol while for diesel they have to fork out Rs 97.02.

In Mumbai, petrol is now priced at Rs 108.49 a litre while diesel costs Rs 95.02 a litre. Petrol price in Chennai has gone up to Rs 105.31 a litre while diesel is priced at Rs 96.98.

As fuel is out of GST ambit, its prices vary from state to state due to varying incidence of VAT.

The sharp increase in key auto fuel prices is expected to trigger a rise in transportation cost which is likely to have its impact on both essential and non-essential items.

As nearly 90% of petrol and diesel sold by oil marketing companies are consumed by the general public, the back-to-back hike in retail prices is set to burn deep holes in the pockets of the common man.

While fuel supply has remained stable in the country, a sharp increase in auto fuel is set to intensify inflationary pressure on the economy. Micro, small and medium enterprises (MSMEs) which have already been hit hard by the input cost could find it tougher to maintain profit margin in the wake of fuel price increase.

Industry experts see demand slowing down in coming months as the household budget comes under pressure.

"Higher transportation and logistics costs could gradually push up prices of essential goods and services, increasing the burden on household budgets and raising overall cost-of-living concerns in the near term," said Ajit Mishra – SVP, Research, Religare Broking Ltd.

In a big blow to consumers, oil companies on May 15 hiked prices of petrol and diesel by up to Rs 3 per litre. They subsequently effected second hike within a week, raising the price by about 90 paise.

With the third hike, petrol and diesel prices have now gone up by about Rs 5 a litre.

The global crude oil prices have been rising ever since the West Asia conflict began. It is currently above US$100 a barrel and shows no sign of softening in the near future. As India imports nearly 88% of its oil needs, higher global crude oil prices are expected to significantly increase its import bill in the current fiscal.

(KNN Bureau)