By Reuters | New Delhi
India state-fuel retailers raised petrol and diesel prices by less than a rupee per litre on Tuesday, the second increase in a week to recover some losses from high crude prices resulting from the Iran war.
After the rise of roughly 0.9 rupees ($0.0093), consumers will pay 98.64 rupees for a litre of petrol in New Delhi and 91.58 rupees for a litre of diesel, dealers said. Prices vary across the country because of regional taxes.
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Although petrol and diesel prices are deregulated in India, the government exerts significant influence on prices as the majority shareholder of the key retail companies.
Sujata Sharma, a joint secretary in the oil ministry, said on Monday the state fuel retailers have been losing 7.5 billion rupees daily. The government has no plans to provide financial support for them, Sharma said.
Sources at refiners said more price hikes are needed to recoup the losses. The fuel retailers did not respond to Reuters’ emails seeking comment.
India is the world’s third-largest importer and consumer of oil and was one of the last major economies to raise retail fuel prices after the U.S.-Israeli war on Iran triggered a surge in prices globally.
State-run Indian Oil Corp (IOC), Hindustan Petroleum (HPCL.NS) and Bharat Petroleum (BPCL.NS) which together control more than 90% of a network of 103,000 fuel stations, tend to set prices in tandem.
The state-run suppliers raised petrol and diesel prices on Friday by 3 rupees a litre, the country’s first price increase in four years. Dealers and analysts said they expected a staggered increase in prices, similar to April 2022 during the COVID pandemic.
Opposition parties said the government, headed by Prime Minister Narendra Modi, had postponed price increases to try to win votes in recent state elections. Modi’s Bharatiya Janata Party won two of the four states, expanding its political influence. Modi has argued people to limit their travel to conserve fuel and curb buying gold.
