With crude oil prices hovering above $100 per barrel, the private fuel retailer has increased fuel prices to offset its losses. In Bengaluru, petrol prices have been hiked by Rs 7.41 per liter. Additionally, the price of diesel has seen an increase of Rs 25.
Petrol and Diesel rates surge
New Delhi: Just a few days ago, the prices of petrol and diesel were hiked at Nayara Energy's fuel pumps. Now, another company has raised petrol and diesel prices in India. Shell India has implemented a price hike for petrol and diesel effective April 1st.
With crude oil prices hovering above $100 per barrel, the private fuel retailer has increased fuel prices to offset its losses. In Bengaluru, petrol prices have been hiked by Rs 7.41 per liter. Additionally, the price of diesel has seen an increase of Rs 25.
Consequently, the price of regular petrol has risen to Rs 119.85, while the 'Power' variant is now priced at ₹129.85. Due to local taxes, fuel prices at these pumps may vary slightly in other cities. The hike in diesel prices has been even more substantial, amounting to Rs 25.01 per liter. Regular diesel is now priced at Rs 123.52, and premium diesel at Rs 133.52.
Could Prices Rise Further?
According to a report by Moneycontrol, the primary reason for this hike is the surge in oil prices triggered by the conflict involving Iran. It is estimated that diesel prices could rise even further, potentially reaching Rs 148-Rs 165 per liter. However, no official announcement regarding this has been made yet.
The report notes that private fuel retail companies are under pressure because public sector oil companies have largely kept their prices unchanged, despite the rising cost of crude oil. Unlike their public sector counterparts, private oil retailers do not receive government compensation; consequently, they are compelled to pass the burden of rising costs onto their customers.
Nayara Had Also Raised Prices
Just a few days prior, Nayara Energy had also hiked the prices of petrol and diesel. Petrol prices have risen by Rs 5 per liter, and diesel prices by Rs 3 per liter. This company operates 6,967 petrol pumps across the country. Meanwhile, Shell India has a total of over 325 petrol pumps located in Karnataka (particularly Bengaluru), Maharashtra, Gujarat, Tamil Nadu, Telangana, and Assam.
How much have crude oil prices risen?
It is worth noting that India imports approximately 88 percent of its crude oil requirements. Consequently, fuel prices remain sensitive to disruptions in supply. Amidst escalating conflicts in West Asia, concerns regarding shipments passing through the Strait of Hormuz have intensified. Since February 8-when the United States and Israel launched attacks on Iran-Brent crude prices have surged by up to 60 percent.
