India woke Friday to an uncomfortable truth - the United States and Israel's war on Iran, the blockade of the Strait of Hormuz, and the shock to the global energy trade had finally hit domestic fuel prices.
Oil marketing companies, increased retail prices of petrol and diesel by a minimum of Rs 2.83 per litre and that of CNG, or compressed natural gas, by Rs 2 per kilogram. The hikes are sharpest in Kolkata and Mumbai - from Rs 3.11 per litre of diesel in the latter to Rs 3.29 per litre of petrol in the former. Prices were hiked by an even Rs 3 per litre for both in Delhi.
Why were prices hiked?
Because the war has added lakhs to OMCs' costs - from increased crude prices to higher risk premiums and charter rates - to a point where cumulative losses of Rs 1.2 lakh crore were predicted for Q1 FY27.
And OMCs are already losing Rs 1,600 crore daily on fuel subsidies.
