Petrol Diesel Prices Hike: India had a new petrol and diesel price hike on Wednesday as oil marketing companies raised the price of fuel by nearly ₹3 per litre in major cities. The increase follows a recent surge in oil prices globally due to increasing geopolitical tensions from the Middle East, where Saudi Arabia has faced disruptions near the Strait of Hormuz. This was the first significant increase in fuel prices in almost four years, and has hit transport costs, household budgets and inflation directly.
The latest hike has alarmed daily commuters, transport companies and fuel-intensive industries. If the price of crude oil rises further worldwide, experts generally expect that adjustments in fuel prices will follow in months.
Why Petrol and Diesel Prices Increased
The recent spike in petrol and diesel prices is primarily due to the high international crude oil price. The geopolitical tensions due to the Iran conflict and the oil supply routes disruptions created uncertainty in the worldwide energy market. India is a net crude oil importer, almost 80–85% requirement is imported, and any changes on the international price front will immediately reflect in local fuel prices.
Government sources said that oil companies had endured losses for weeks on end due to high crude prices. Though, as financial strain grew, businesses started to shoulder part of the blame onto customers.
Latest Petrol and Diesel Prices in Major Indian Cities
The recent hike has impacted fuel prices differently across cities due to varying state taxes and VAT rates.
| City | Petrol Price (Per Litre) | Diesel Price (Per Litre) |
| Delhi | ₹97.77 | ₹90.67 |
| Mumbai | ₹106.68 | ₹93.14 |
| Kolkata | ₹108.74 | ₹95.13 |
| Chennai | ₹103.67 | ₹95.25 |
| Bengaluru | ₹106.17 | ₹94.10 |
| Pune | ₹106+ | ₹93+ |
The prices above reflect revised fuel rates after the ₹3 per litre hike announced by oil companies.
Impact of Fuel Price Hike on Common People
Petrol and diesel prices have a wide impact on almost all sectors of the economy. Transportation is indirectly connected to the fuel price hike, as once it becomes more expensive, there are higher costs of transportation, which then get transferred onto food, vegetables and grocery prices – or non-constant goods.
Fares of all public transport services (bus, taxi and auto-rickshaw) may also see an increase. Already in some cities, transport unions have filed for fare revision after soaring fuel prices.
The most affected are likely to be middle-class families, as daily travelling costs and the value of family budgets may rise drastically.
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Effect on Inflation and Economy
Many economists, however, believe that the fuel price hike will lead to inflation in India as a whole. Since trucks and other commercial vehicles are based on diesel fuel, logistics and freight transportation are particularly susceptible to rising diesel prices.
Higher transportation expenses tend to raise prices of consumer goods and decrease disposable income. Continued inflation in fuel prices could slow down economic growth if crude oil prices stay at high levels all around the world, according to experts.
Simultaneously, oil marketing companies like Indian Oil (IOC), BPCL and HPCL are also under pressure as they have not been allowed to raise domestic prices of fuel even as global crude rates surged.
Government Response to the Fuel Crisis
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To tackle the fuel crisis, the Indian government has undertaken various initiatives. Previously, excise duties on petrol and diesel were cut to contain the consumer burden. Authorities have also called for fuel-saving steps and promoted partial teleworking policies in certain industries.
India is also making its crude oil imports more diverse by ramping up purchases from countries such as Russia, as it seeks to cut reliance on Middle Eastern oil supplies.
Conclusion About Petrol Diesel Prices Hike
November 13th, 2021:The latest petrol diesel price hike has added more pressure on the wallets of consumers and businesses across India. The increase is mainly because of climbing global crude oil prices, geopolitical tensions and supply constraints. Fuel prices have seen the biggest jump in major cities like Delhi, Mumbai, Kolkata, Chennai and Bengaluru.
Fuel prices in India have already seen some fluctuation over the past few months. If international oil prices continue to remain unstable, more adjustments may follow in 2021. Consumers will tend to gravitate towards fuel efficiency, public transport and other cost savings in order to counteract the rise.
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