Delhi. The people who are facing the scorching heat in the month of May have been given another severe blow of inflation by the government oil companies this morning. People were just leaving their homes for their daily work when the new rates came into effect at the petrol pumps. The three major oil companies of the country – Indian Oil, Bharat Petroleum and Hindustan Petroleum have increased the price of petrol by 87 paise and diesel by 91 paise per liter. This cumulative increase of about Rs 5 per liter in the last 10 days has completely devastated the household budget of the salaried and middle class.
Petrol nears century in Delhi, outcry in other cities
After the latest revision, the new price of petrol in the national capital Delhi has become Rs 99.51 per liter, which is just 49 paise away from the psychological level of Rs 100. Diesel has also touched the level of Rs 92.49 per liter. The situation in other metro cities of the country is even more serious; petrol is being sold at Rs 110.64 in Kolkata, Rs 108.49 in Mumbai and Rs 105.31 in Chennai per liter. It is noteworthy that after nearly four years of stability, oil companies had made a major change of Rs 3 in the rates for the first time on May 15, after which this trend has continued continuously.
West Asian tensions have disrupted India’s calculations.
The main reason for this sharp rise in fuel prices in the domestic market is the geopolitical turmoil unfolding across the seven seas. The escalating military conflict between the US and Iran in West Asia has severely affected the world’s most important oil supply route, the Strait of Hormuz. Consequently, crude oil prices in the international market have surged to around $113 to $114 per barrel. Since India imports approximately 85 to 90 percent of its total crude oil needs from abroad, this global heat was expected to scorch the Indian market and its economy.
Agricultural season and freight charges hit twice
The current increase in petrol and diesel prices has also brought a major crisis to the country’s rural areas and agriculture sector. Many states are currently in the final stages of wheat harvesting and preparing for paddy sowing, where diesel is in high demand to run tractors and pump sets. Furthermore, the increase in diesel prices will immediately increase transportation costs within the country. This will directly impact the prices of fruits, green vegetables, milk, and rations arriving in the markets, which could make retail inflation figures even more alarming in the coming days.