India raises diesel, petrol prices for third time in eight days
Retailers’ losses are getting compounded due a demand spike from bulk consumers
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[NEW DELHI] India’s state-run refiners raised retail prices again of diesel and petrol on Saturday (May 23) to help processors cut losses on discounted sales and to control a spike in demand.
Prices of both fuels rose by nearly 1 per cent, or less than one rupee, with petrol now sold at 99.51 rupees (S$1.33) and diesel at 92.49 rupees per litre in New Delhi, according to the website of Indian Oil, the country’s largest fuel retailer. Prices vary across India due to local taxes.
Smaller peers Bharat Petroleum (BPCL) and Hindustan Petroleum too raised prices in the same range.
The state refiners, which command 90 per cent of the market, raised prices for the first time in four years on May 15 by over 3 per cent, or three rupees per liter. The next two hikes were kept at less than one rupee as the government staggers increases to avoid shocking consumers with a sharp single spike.
BPCL is selling diesel at a loss of 25 to 30 rupees a liter and petrol at a loss of 10-14 rupees a liter, the Mumbai-based refiner said on Tuesday. In comparison, Shell India, a private retailer, is selling petrol at over 115 rupees and diesel at over 126 rupees per liter.
Retailers’ losses are getting compounded due a demand spike from bulk consumers who are turning to cheaper retail pumps. That is also spurring panic buying as people fear the country is running out of fuel.
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India has adequate supplies of petrol and diesel and people should avoid panic buying, the Ministry of Petroleum and Natural Gas said in a post on X late on Friday. “Responsible consumption and public cooperation will help ensure smooth fuel availability for everyone during the ongoing high-demand period,” it said. BLOOMBERG
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