The government on Friday raised retail prices of petrol and diesel by around ₹3 per litre and increased compressed natural gas (CNG) prices by ₹2 per kg, marking the first significant fuel price revision in over two years, even as it argued that consumers are still being shielded from the full impact of soaring international crude oil prices triggered by the escalating West Asia crisis.
With the latest revision, petrol and diesel prices in the national capital rose to ₹97.77 and ₹90.67 per litre respectively, while CNG prices increased to ₹79.09 per kg.
Defending the move, government sources said a complete pass-through of the global oil shock would have required retail fuel prices to rise by as much as 200-300 per cent of the present increase because of the sharp spike in international crude prices and India’s heavy dependence on imported oil.
According to sources, the state-owned oil marketing companies (OMCs), Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, have limited the increase to around 3.5 per cent on a base price of roughly ₹95 per litre in an attempt to cushion consumers from extreme global volatility.
Absorbing losses
