New Delhi: State-run oil marketing companies increased the petrol price by Rs 2.61 per litre and diesel by Rs 2.71 a litre on Monday, the fourth hike in just 10 days, which will push up transportation and logistics costs, adding to inflationary pressure.
With the latest revision, the cumulative hike in petrol and diesel prices since May 15 stands at around Rs 7.5 per litre. It was hiked by Rs 3 per litre on May 15 followed by 87-91 paise per litre hike on May 19 and May 23.
In Bengaluru, petrol price jumped to Rs 110.93 per litre, while diesel price rose to Rs 98.80 a litre.
In Delhi, petrol price crossed the Rs 100 per litre mark for the first time in over four years. A litre of petrol now costs Rs 102.12 in Delhi, while diesel price has jumped to Rs 95.20 per litre.
The Rs 102.12 per litre petrol price in the national capital includes Rs 16.59 value added tax (VAT) and Rs 4.45 dealer commission, data shared by Indian Oil Corporation showed.
Hyderabad is the costliest city for motorists with a litre of petrol costing Rs 115.73 and diesel Rs 103.82. It is followed by Thiruvananthapuram, where a litre of petrol costs Rs 115.49 and diesel Rs 104.41.
In cities like Patna, Kolkata, Jaipur and Mumbai, one litre petrol now costs more than Rs 110. Fuel prices differ across states because of variations in local taxes.
According to analysts, petrol and diesel prices are likely to go up further as the recent hikes have only marginally reduced the under-recoveries faced by oil marketing companies.
Petrol, diesel prices up by 90 paise a litre; second hike in five days"Oil marketing companies are incurring a loss of about Rs 700-800 crore daily on the sale of auto fuels and domestic LPG, even after factoring the fuel price hike. This high level of under-recoveries is unsustainable," said Prashant Vasisht, senior vice president at ICRA.
The fuel price hikes have started pinching household budgets. Five in every 10 consumers say cost of transportation, products and services have increased due to hike in petrol and diesel prices, according to a survey conducted by LocalCircles. Around 70% consumers surveyed say they will reduce non-essential travel and outings to cope with rising petrol/diesel prices.
"Beyond higher transportation costs, the broader concern is the pass-through effect on the prices of everyday goods," said Vivek Yadav, Partner at BDO India.
Consumers may respond by becoming more value-conscious, prioritising essential purchases and delaying discretionary spending. Businesses that proactively adapt their cost structures today will be better positioned to protect margins and maintain consumer trust in the event of a sustained period of elevated fuel prices, he added.