Update on petrol and diesel prices: Global crude oil markets have responded dramatically to the escalating battle between Iran, the United States, and Israel as tensions continue to increase in West Asia. International crude oil prices surpassed the psychological threshold of $100 per barrel on Monday due to a significant production shock from oil-producing nations like Qatar, Bahrain, and the United Arab Emirates. This raised concerns about the effect on fuel prices in nations that rely on imports. There are rumors that India’s petrol and diesel prices would rise as a result of the sharp spike in crude oil prices worldwide. Here’s what we know about whether the Modi administration is considering raising the cost of gasoline and diesel in India.
Is Modi government planning to hike petrol, diesel prices?
However, despite the surge, the government has reiterated that there will be no increase in retail prices of petrol and diesel for now, aiming to protect consumers from the immediate impact of the global price spike.
As per multiple media reports quoting top sources, there are “no immediate” plans to raise prices of the two auto fuels. The reports quoted the officials as saying that India currently has about 25 days of stock of crude oil and petroleum products each, which is considered sufficient to manage the situation in the short term. Supplies are also available, including shipments of Russian crude at sea.
Why has Modi government invoked Essential Commodities Act in LPG production?
Meanwhile, the government has invoked emergency powers under the Essential Commodities Act to direct Indian refiners to maximise LPG production and ensure the entire supply is used only for domestic LPG consumers instead of petrochemical production.
“Of course, the cost is rising due to the war. PSU refiners have made profits in the last 2-3 years and can absorb some of the costs. They are also responsible corporate citizens, who absorbed higher crude prices in 2022 at the peak of the Russia-Ukraine war,” the Business line quoted a government source as saying.
Why government may not increase petrol, diesel prices for now?
“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 report by Indian Express quoted another senior government official as saying.
