Petrol and Diesel Prices May Rise by ₹10 Per Litre Again, Experts Warn of Bigger Inflation Burden
Experts warned that petrol and diesel prices in India may rise by nearly ₹10 per litre due to rising crude oil prices and global tensions, increasing inflation concerns.
New Delhi: The common public in India may soon face another major inflation burden as economists and market experts have warned that petrol and diesel prices could rise further in the coming weeks. According to experts, fuel prices may increase by nearly ₹10 per litre due to rising crude oil prices in the international market and growing tensions between the United States and Iran.
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Reports stated that government oil marketing companies, which control nearly 90 percent of the country’s fuel market, have already increased petrol and diesel prices by ₹3 per litre.
Rising Crude Oil Prices Behind Possible Fuel Hike
According to experts, the recent increase in fuel prices was linked to rising geopolitical tensions between the United States and Iran, the ongoing conflict in West Asia and the continuous rise in global crude oil prices.
Economists warned that if crude oil prices continue to increase at the current pace, the public could face another major fuel price hike in the coming weeks.
MK Global Predicts ₹10 Fuel Price Increase
Economic research firm MK Global stated that oil companies may increase petrol and diesel prices either gradually or in one phase by around ₹10 per litre to reduce their financial losses.
According to the report, if fuel prices are increased by ₹10 per litre, nearly 50 percent of the losses suffered by oil companies could be recovered.
Oil Companies Claim Heavy Losses Despite Excise Duty Cut
The report noted that the Central Government had reduced excise duty on fuel by ₹10 per litre in March.
However, oil companies are reportedly claiming that they are still facing losses of around ₹17 to ₹18 on every litre of petrol and diesel sold.
According to reports, if the present situation continues, government oil companies could face massive losses ranging between ₹57,000 crore and ₹58,000 crore during the current quarter.
Inflation May Rise Further Due to Fuel Price Increase
Experts warned that the impact of expensive fuel would not remain limited to petrol pumps alone.
They stated that rising prices of petrol, diesel, gas cylinders and milk could further increase inflation in the coming months and directly affect the daily lives of common people.
The report also highlighted that prices of food items, gas, milk and daily-use products are already increasing sharply across the country.
Public Demands Government Action on Inflation
Amid fears of another fuel price hike, people are demanding immediate government intervention to control rising inflation.
Experts cautioned that if petrol and diesel prices rise further, transportation costs and prices of several essential goods may also increase significantly, placing additional financial pressure on the middle and lower-income sections of society.
Economists and market experts have warned that petrol and diesel prices in India could increase by nearly ₹10 per litre in the coming weeks due to rising crude oil prices, tensions between the United States and Iran and the ongoing West Asia conflict. Oil companies, which already raised fuel prices by ₹3 per litre, claim they are suffering losses of ₹17 to ₹18 per litre despite the government reducing excise duty by ₹10 in March. Experts warned that any further fuel hike could sharply increase inflation and worsen the financial burden on common people.
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