The Centre on Friday raised petrol and diesel prices by Rs 3 per litre nationwide, the first retail revision in nearly four years, citing soaring global crude prices. In Mumbai, petrol rose to Rs 106.68 and diesel to Rs 93.14 per litre.
Ending days of intense speculation, the Centre on Friday announced an immediate Rs 3 per litre hike in petrol and diesel prices across the country, marking the first revision in retail fuel rates in nearly four years. The revised prices came into effect immediately from Friday without any transition window. Along with petrol and diesel, the price of CNG was also increased by Rs 2, a move expected to have a wider impact on transportation and household expenses.In Mumbai, petrol prices climbed to Rs 106.68 per litre after a hike of Rs 3.14, while diesel rates rose by Rs 3.11 to Rs 93.14 per litre. The increase is likely to hit daily commuters, cab and autorickshaw operators, and logistics businesses in the city, where fuel costs directly affect transportation fares and commodity prices.Among the four major metro cities, Mumbai recorded one of the steepest hikes in petrol prices. In Delhi, petrol prices rose to Rs 97.77 per litre and diesel to Rs 90.67 per litre. Kolkata saw petrol prices increase to Rs 108.74 and diesel to Rs 95.13, while in Chennai, petrol now costs Rs 103.67 and diesel Rs 95.25 per litre.The hike comes amid mounting pressure on state-run oil marketing companies due to rising global crude oil prices. Earlier in March, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) had raised the prices of premium petrol and diesel, but rates for regular retail consumers had remained unchanged until now.According to reports, the three oil companies were collectively absorbing losses of nearly Rs 1,600 crore daily as they continued purchasing crude oil at elevated international prices while avoiding a retail hike. The Centre had reportedly delayed revising fuel prices in an attempt to keep inflation under control, since fuel costs have a cascading impact on transportation, food and essential commodities.The pressure intensified after conflict in West Asia pushed crude oil prices sharply higher in the global market. India’s crude basket, which averaged around USD 69 per barrel before the Iran conflict escalated in February, later surged to nearly USD 113-114 per barrel in subsequent months.
Earlier, Prime Minister Narendra Modi urged citizens to conserve fuel and adopt work-from-home practices wherever possible to reduce fuel consumption and ease pressure on India’s foreign exchange reserves. Supporting the appeal, Delhi Chief Minister Rekha Gupta announced a 90-day fuel conservation campaign and two days of work-from-home for government offices.
