Petrol prices may rise by up to Rs 10; Oil companies say there is no other option to recover losses

NEW DELHI: Fuel prices are rising again after several years, with petrol and diesel rates increasing due to the sharp rise in crude oil prices caused by tensions in West Asia. Since May 15, fuel prices have been revised three times. Along with petrol and diesel, CNG prices have also been increased. After midnight on Saturday, petrol prices went up by 87 paise per litre, while diesel prices increased by 91 paise.

Oil companies say they are currently facing heavy losses and may have no option but to continue raising fuel prices to recover costs. Fuel prices have already increased by Rs 4.81 in three revisions since May 15. Reports claim that companies may still need to raise prices by at least another Rs 10 to offset their losses. Experts warn that if fuel prices continue to rise at this pace, it could lead to an increase in the prices of essential commodities and transportation costs.

The main reason behind the fuel price hike is the ongoing conflict in West Asia and disruptions in the Strait of Hormuz, a key route for global oil transport. Restrictions and transport issues in the region have pushed crude oil prices sharply higher. In the international market, crude oil prices had recently touched 120 dollars per barrel and are currently trading around 100 to 105 dollars per barrel.

Oil companies say they are under severe financial pressure despite the recent price hikes. According to the BPCL chairman, companies are still losing up to Rs 30 per litre on diesel and Rs 14 per litre on petrol at current selling prices. The companies also said that losses continue even after the central government removed import duty on fuel.