Petrol and diesel prices increased by Rs 3, CNG price also up
Petrol and diesel prices have increased by Rs 3 per liter each. In Delhi, petrol will now be available at Rs 97.77 per liter, while the price of diesel has risen to Rs 90.67 per liter. These new rates came into effect today, May 15. This price hike marks the first such increase in nearly two years.
The retail prices of petrol in Mumbai, Kolkata, and Chennai will now stand at Rs 106.68, Rs 108.74, and Rs 103.67 per liter, respectively.
On the other hand, diesel will be available at Rs 93.14 per liter in Mumbai, Rs 95.13 in Kolkata, and Rs 95.25 in Chennai.
Along with petrol and diesel, the price of CNG in major cities has also gone up by up to Rs 2 per kilogram. In Delhi, one will now have to pay Rs 79.09 for a kilogram of CNG.
The primary reason for this hike is the volatility in crude oil prices within the international market. Prior to the outbreak of hostilities between Iran and the US, crude oil prices stood at $70 per barrel; they have now surged past the $100 per barrel mark.
State-run oil companies -- Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) -- have been buying crude oil at a higher price amid Middle East crisis, but had not been passing the increase on to retail consumers.
The oil-marketing companies have reportedly been bearing a loss of about Rs 1,600 crore daily. Despite this, the Centre refrained from increasing fuel prices to keep inflation under control.
Freight charges and fares for public transport will increase
The hike in diesel prices has a direct impact on the pockets and kitchens of common people.
Truck and tempo rentals will rise, making vegetables, fruits, and groceries arriving from other states more expensive.
Farmers will incur higher expenses to operate tractors and pumping sets, thereby increasing the cost of food grains.
An increase may also be observed in the fares for public transport and school buses.