AA Edit | Fuel Prices To Push Inflation Up

Oil marketing companies have once again increased fuel prices steeply on Monday — the fourth time in the last two weeks. With the latest price hike, the cumulative increase in petrol and diesel prices has reached Rs 7.5 per litre, which is expected to reflect in inflation numbers.

In Delhi, petrol will now retail at Rs 102.12 per litre, while diesel will cost Rs 95.20 per litre. After adding local taxes, fuel price was highest in Andhra Pradesh, where petrol is sold at Rs 117.19 per litre and diesel at Rs 104.88 a litre. In Hyderabad, petrol is being sold at Rs 115.58 per litre, while diesel costs Rs103.74.

Despite the steep hikes, people cannot expect to see a pause in further increase in fuel prices as oil marketing companies continue to bleed, losing around Rs 700 crore a day because of higher global crude oil prices.

Though United States President Donald Trump raised hopes of an Iran deal on Sunday, it was extinguished within a few hopes, underlining uncertainty surrounding peace efforts in West Asia. However, peace overtures cooled crude oil price for the first time below $100 a barrel.

Even in the event of a peace deal between the US and Iran, the global crude oil supply would reach a status quo ante only after six months as sources for at least 11 million barrels were damaged in the West Asian war, making fuel pain imperative for Indians at least till the end of 2026.

The Narendra Modi government, however, should not forego the opportunity to reform the country’s energy market. While shifting to green energy remains the long-term goal for India, the government must diversify its supplier base — buying not more 20 per cent from any single region — to derisk itself from local supply disruptions. Unless India secures its energy autonomy, it cannot emerge as a major global power.