Fuel Prices Increased for Second Time in Five Days
State-owned oil marketing companies on Tuesday again increased the prices of petrol and diesel across the country, adding further burden on consumers.
Petrol price has gone up by 93 paise per litre, taking the rate in Bhubaneswar to ₹105.44 per litre. Diesel price has increased by 96 paise per litre and now costs ₹96.55 per litre.
Similarly, premium petrol prices have risen by 94 paise per litre, reaching ₹114.56 per litre.
This is the second fuel price hike within the last five days.
Earlier Hike After Election Results
The results of elections in four states and one Union Territory were declared on May 3. Following the elections, oil companies had increased petrol and diesel prices by more than ₹3 per litre on May 15.
After the previous hike, petrol prices in Bhubaneswar had reached ₹104.51 per litre, diesel ₹95.99 per litre, and premium petrol ₹113.62 per litre.
With the latest revision, fuel prices have become even more expensive across the country.
Iran-US Conflict Impacts Global Oil Supply
The recent rise in fuel prices has been linked to the ongoing Iran-US conflict and the closure of the Strait of Hormuz, a key route for global crude oil transportation.
Due to disruptions in oil supply from Gulf nations, crude oil prices in the international market have increased sharply.
Rupee Weakening Against Dollar Adds Pressure
Another major reason behind the price hike is the weakening of the Indian rupee against the US dollar. As the rupee continues to lose value, the cost of importing crude oil has increased significantly for Indian oil companies.
The combined impact of rising global crude oil prices and currency depreciation has reportedly increased the financial burden on petroleum companies.
Oil Companies Passing Burden to Consumers
According to market experts, oil companies have started transferring the additional burden to consumers due to mounting losses in petrol and diesel sales.
Analysts also believe that political pressure to avoid fuel price hikes before elections is no longer present, allowing government-owned oil companies to revise fuel prices upward more freely.
Consumers Concerned Over Rising Expenses
The repeated increase in fuel prices is expected to impact transportation costs and prices of essential commodities, adding pressure on household budgets and daily commuters.