Petrol prices in India increased by $5.30 per liter and diesel rose by $3 per litre, as Nayara Energy, India’s largest private fuel retailer, raised fuel prices. Track updates on the Middle East war
Against the backdrop of energy concerns sparked by the war between Iran and the US, petrol and diesel prices in India have been gradually rising over the past few weeks, as the virtual closure of the Strait of Hormuz and attacks on energy facilities by the US and Iran have disrupted global supplies.
The agency quoted sources as saying that Nayara Energy, which operates 6,967 petrol pumps out of 102,075 petrol pumps in India, has decided to pass on part of the increase in input costs to consumers.
Sources said that Nayara, which is majority owned by the Russian company Rosneft, raised the price of gasoline by 100%. $5 per liter and diesel at a rate $3, The effective rate increase varies from state to state depending on the extent of the impact of local taxes such as VAT. In some places the increase reaches a level $5.30 per liter of gasoline.
Private sector fuel retailers in India are not receiving any government compensation to offset losses caused by curbing price increases, unlike state-owned enterprises (SOEs) which are being subsidized to act as “good corporate citizens”, the sources said, adding that mounting losses have left them no choice but to raise retail prices.
Amid fears of fuel shortages, people in several states across India are flocking to petrol pumps to refuel their cars, while the LPG crisis has also created long queues outside petrol stations and depots.
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Regarding petrol prices, one of the highest prices was reported from Hyderabad where it costs a litre $107.46 as on Thursday. In other cities like Mumbai and Kolkata, prices have also gone up $100 marks per litre. Hyderabad tops the list of Tier 1 cities for diesel prices $95.70 per litre.
Below are gasoline prices by city:
Below are diesel prices by city:
(Data from goodreturns.com)
Despite the government’s reassurance that the country is not facing a fuel shortage, panic buying of petrol and diesel was reported from several parts of Assam, including the largest city Guwahati, on Wednesday amid reports of fuel shortages on social media.
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Meanwhile, AIMIM president Asaduddin Owaisi claimed that the government has been “surprised” in dealing with the “energy crisis” amid the ongoing conflict in West Asia as it has failed to build adequate strategic oil reserves.
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The Hyderabad MP said India was facing a shortage of key fuels and fertilisers, and warned that petrol and diesel prices would rise after the upcoming Assembly elections.
