New Delhi : Premium petrol prices have been increased by Rs 2 to Rs 2.3 per litre by oil marketing companies, mainly due to rising geopolitical tensions in the Middle East affecting global fuel markets. Dealers said that branded fuels like Hindustan Petroleum Corporation Limited’s Power petrol and Indian Oil Corporation Limited’s XP95 have become costlier.
The US also announced steps to increase oil supply. Even so, prices are still above the $100 per barrel mark. For the week, Brent crude is still up nearly 5%, after Iran attacked oil and gas facilities in Gulf countries, forcing production cuts. Treasury Secretary Scott Bessent said sanctions on Iranian oil stuck in tankers could be lifted, and more oil may be released from the U.S. reserves. At the time of reporting, Brent crude was at $108.26 per barrel, while WTI crude was at $95.27.
Above $110 per barrel crude, retail fuel price hikes become unavoidable, the brokerage said. An oil ministry official said in a recent briefing that India’s refineries are running at full capacity and there have been no fuel shortages at petrol pumps so far. Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, added that oil marketing companies are carrying out surprise checks at fuel stations to prevent any unfair practices.
Pricing decisions, she said, are taken by oil companies independently as petrol and diesel pricing were deregulated in 2010 and 2014, respectively. “It (pricing) is decided by oil marketing companies. Government does not regulate petrol and diesel prices,” she added.
The government is closely monitoring global oil markets, but there is no immediate plan to raise retail fuel prices. Oil marketing companies are expected to absorb the current cost pressure for the time being. Our priority is to make energy available to all consumers, which we have been doing all through the crisis. Till now we have not increased the prices,” she added.
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