With the West Asia war leading to a surge in international crude oil and fuel prices and burdening India’s public sector refiners and fuel retailers, prices of premium petrol and bulk diesel consumed by industrial users were hiked Friday. The price of regular petrol and diesel remained unchanged.
The price of premium 95-octane petrol was hiked by Rs 2 per litre in Delhi to Rs 101.89 per litre, with corresponding changes in other parts of the country. The price of industrial diesel went up by around Rs 22 per litre to Rs 109.59 in Delhi, from Rs 87.67 per litre.
According to a senior government official, the premium petrol caters to a miniscule segment of Indian consumers, and the interests of the common consumer have been so far protected.
Sources indicated there was no immediate plan to increase retail prices of regular petrol and diesel, with public sector fuel retailers continuing to absorb the losses.
International crude oil benchmark Brent had touched $119 per barrel Thursday and as of Friday evening, it was around $108 per barrel, still 48% higher than the last price before the start of the West Asia war on February 28. Crack spreads, or margins between oil and petroleum products, have also surged globally for fuels like diesel, petrol, and aviation turbine fuel.
State-owned Indian Oil Corporation (IOC), the country’s largest refiner and fuel retailer, in a post on X, said, “As global crude prices surge, stability at home matters more than ever. IndianOil has ensured no increase in regular automotive fuel prices in India, even amid rising international costs. A limited revision applies only to premium petrol XP-95, with minimal impact on overall consumption. Through evolving global conditions, the focus remains clear: consistent supply, responsible pricing, and service you can rely on.”
Petroleum Ministry Joint Secretary Sujata Sharma told reporters: “Some increase is reported in the premium category which hardly makes up for 2-4% of the entire petrol (consumption)… There is no increase in price for the common man.” She declined to comment on whether retail prices of regular petrol and diesel will remain at the current levels despite the volatility in global prices.
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The government’s current priority, she said, is to ensure energy availability for consumers amid a “concerning” global situation, and the public-sector fuel retailers have resisted increasing fuel prices so far.
According to IOC, premium petrol sales account for just about 5% of total petrol sales. As for regular petrol and diesel, they continue to be priced at Rs 94.77 per litre and Rs 87.67 per litre in Delhi. Fuel prices vary across states due to different levels of state taxes. Normal petrol usually has an octane rating of around 92, while premium petrol has an octane rating of 95 to 98, which helps increase performance particularly in luxury cars with high-performance engines.
Public sector oil marketing companies (OMCs) IOC, Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) have a cumulative market share of around 90% in India’s fuel retail market, giving them undisputed control on fuel pricing. India depends on imports to meet over 88% of its crude oil requirement, which makes the Indian refiners extremely vulnerable to global oil price volatility.
A continued freeze in pump prices is expected to blunt the inflationary impact of the oil price spurt. Petrol and diesel prices have effectively been flat since April 2022, with the public sector oil retailers taking losses when global prices jump, and recouping them when they fall.
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“The OMCs have done well financially over the past few years and they are in a comfortable position to take some temporary pain to protect the Indian consumer from high energy prices… Is the price of petrol or diesel at the retail outlet going to rise in the foreseeable future? It is unlikely to happen,” a senior government official had said earlier this month.
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