Petrol Diesel Price Hike: Fuel Prices May Rise Again? Know Govt’s Answer

Petrol Diesel Price Hike: The government has currently stated that there is no shortage of petrol, diesel, or LPG in the nation. However, the Petroleum Ministry has not specified if fuel prices will increase again soon. This announcement comes shortly after state-owned oil marketing companies (OMCs) raised petrol and diesel prices by Rs 3 per liter nationwide just a few days ago.

What did the government say?

During an inter-ministerial press conference in New Delhi on Monday, Sujata Sharma, Joint Secretary in the Petroleum Ministry, mentioned that the government cannot foresee when the next adjustment in fuel prices will occur. She also noted that state-owned oil companies are still under pressure due to high international crude oil prices.

No fuel shortage

The Petroleum Ministry reassured the public that there are sufficient stocks of petroleum products available in the country. Sujata Sharma stated, “There are ample stocks of petrol, diesel, LPG, and natural gas throughout the nation. LPG distributors, petrol stations, and consumers need not worry. The supply of all essential fuels is proceeding as usual.”

What was the message to the public?

The government has urged citizens to refrain from buying excessive fuel. The ministry encouraged individuals to purchase only the necessary amounts of petrol, diesel, and LPG, avoiding panic buying. Sujata Sharma emphasized that the government is consistently working to ensure there are no issues with the supply and timely delivery of petrol, diesel, and LPG.

Embrace alternative fuels

The government has also recommended that people consider using alternative cooking fuels. The ministry suggested that individuals should utilize more alternatives such as PNG, induction, and electric cooktops to lessen their reliance on LPG. Why is there increasing concern?

Rising tensions in West Asia and escalating international crude oil prices have sparked worries about fuel prices in India. Meanwhile, on Friday, state-run oil marketing companies increased petrol and diesel prices by Rs 3 per liter across the nation. This has sparked market speculation that prices could rise again in the coming weeks. Brent crude is trading at $111.5 per barrel, up more than 2%. Since the Iran war began, crude oil has become more expensive by 50%, causing widespread outrage across the world. This is a major problem for India, which imports nearly 90% of its crude oil. Due to the rising oil prices, state-owned oil companies are incurring a daily loss of approximately Rs 1,380 crore.

The government recently increased the price of petrol and diesel by Rs 3 per liter, but analysts say that to cover the losses, state-owned oil companies need to increase their prices by at least Rs 25. According to calculations by Nomura analyst Vineet Banka, government companies are incurring a daily loss of Rs 1,380 crore on petrol, diesel, and LPG combined.