Indian drivers face higher fuel costs after state-run fuel retailers raised petrol and diesel prices for the first time in four years by three rupees ($0.03) per litre, equivalent to more than 3%.
The increase comes as the retailers try to recoup losses incurred due to higher global crude oil prices.
India, the world's third-biggest oil importer and consumer, is one of the last major economies to raise retail fuel prices, since the start of the U.S.-Israeli war with Iran.
Global oil prices have risen sharply since the beginning of the conflict at the end February.
The spike has been driven by the effective closure of the Strait of Hormuz, a sea passage through which around 20% of the world’s petroleum and crude oil normally passes.
India’s state-run Indian Oil Corp, Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL), which together control more than 90% of the country’s 103,000 petrol stations, tend to set diesel and petrol prices in tandem.
A Bharat Petroleum Corporation Limited (BPCL) spokesperson confirmed the price increase at its retail outlets. Indian Oil. Hindustan Petroleum Corporation Limited (HPCL) didn't immediately respond to a request for comment.
Following the rise, diesel in Delhi will cost 90.67 rupees ($0.95) a litre and petrol 97.77 rupees ($1.02), reflecting increases of 3.4% and 3.2%, respectively, from 87.67 rupees ($0.91) and 94.77 rupees ($0.99) a litre.
Shares of Indian fuel retailers were down between 2.4% and 3.6% on Friday (15 May). Indian Oil Corp fell 2.4%, HPCL dropped 3.3% and BPCL was down 3.6% as of 05:50 GMT.
Madhavi Arora, Chief Economist at Mumbai-based Global Financial Services said higher fuel prices would increase Indian consumer price inflation by around 0.15%, but said the indirect impact would be greater.
"The hikes are not enough but could be the start of multiple staggered hikes," she said.
To curb fuel consumption and rein in oil import bills, New Delhi has rolled out austerity measures as policymakers brace for a prolonged energy shock.
On Sunday (10 May), Prime Minister Narendra Modi urged a spate of measures including fuel conservation, work-from-home practices, and limits on travel and imports, as surging global energy prices put pressure on the country's foreign exchange reserves.
Some states have issued notices to government departments this week to restrict travel, avoid physical events and shift meetings online, while also asking them to work from home two days a week, with offices half-staffed.
India is likely to widen the measures to cover millions of employees across the federal government, state-run banks and public sector firms, signalling a system-wide tightening of expenditure and operations as financial risks mount.
The government did not respond to a Reuters email seeking comment.
Russia has carried out its most extensive aerial attack over a two-day period since the start of its full-scale...
Indian drivers face higher fuel costs after state-run fuel retailers raised petrol and diesel prices for the first ti...
U.S. President Donald Trump said his patience with Iran was running out after he discussed the war with Chinese Pr...
Finland said that...
Thousands of Israeli nationalists marched through Jerusalem’s Muslim Quarter on Thursday under heavy securit...
Russia has carried out its most extensive aerial attack over a two-day period since the start of its full-scale invasion, striking Kyiv and other Ukrainian cities with hundreds of drones, Ukrainian officials said.
A high-powered lawyer representing Elon Musk attacked the personal and professional credibility of OpenAI CEO Sam Altman on Thursday, as a landmark federal trial in California nears its conclusion.
Every year on 15 May, Palestinians across the Middle East mark Nakba Day - a commemoration of the mass displacement that accompanied the creation of the state of Israel in 1948.
Japanese filmmaker Koji Fukada has said that the use of artificial intelligence (AI) to “jump straight to the result” risks undermining the purpose of art, which he believes should be rooted in self-expression and a deeper understanding of the world.
The U.S.-Israeli war with Iran loomed over U.S. President Donald Trump's visit to China, as signs emerged that the conflict is causing a shift in alliances across the Middle East.
Just one week after a similar move by Australia, Greece announced that it will ban access to social media for children under the age of 15 from January 1, 2027, as governments around the world weigh tougher rules amid growing concerns over mental health, safety and screen addiction.
U.S. President Donald Trump said he does not think he will need China's help to end the war with Iran as he left for a high-stakes summit in Beijing on Tuesday, as hopes for a lasting peace deal dwindled and Tehran tightened its grip over the Strait of Hormuz.
When Donald Trump boarded Air Force One for Beijing on Tuesday, he brought two cabinet members whose presence in China would have seemed unlikely a year ago, highlighting an unusual moment in U.S.–China relations.
The Eurovision Song Contest opened in Vienna on Tuesday amid heightened political tensions, as Israel competed in the first semi-final despite a boycott by five European broadcasters over the war in Gaza.
Uzbekistan has launched a nationwide environmental initiative titled ‘Day Without Cars’, which will take place twice a month as part of efforts to improve air quality and reduce vehicle emissions.
The thirteenth session of the World Urban Forum will open in Baku on Sunday, bringing together government representatives, city leaders, urban planners, international organisations, businesses and civil society to discuss the future of sustainable urban development.
Thousands of Israeli nationalists marched through Jerusalem’s Muslim Quarter on Thursday under heavy security, with some calling for the death of Arabs and for Palestinian villages to be burned during an annual march marking Israel’s capture of East Jerusalem in 1967.
The United States cast Israel-Lebanon talks held in Washington on Thursday as "productive and positive" and a State Department official said more discussions aimed at ending their conflict will continue on Friday.
Every year on 15 May, Palestinians across the Middle East mark Nakba Day - a commemoration of the mass displacement that accompanied the creation of the state of Israel in 1948.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment