Overview
- State-run retailers on Saturday raised petrol by about Rs 0.87 per litre and diesel by about Rs 0.91 per litre in Delhi, marking the third retail increase since May 15 and taking cumulative hikes to nearly Rs 5 per litre.
- The Ministry of Petroleum and Natural Gas said national petrol and diesel stocks are adequate and asked consumers not to panic buy while officials blamed temporary shortages at some pumps on panic buying and bulk diesel buyers shifting to retail outlets.
- Public sector oil marketing companies have been absorbing large losses after keeping prices steady since April 2022 and are now recording heavy under-recoveries that the phased price adjustments are intended to reduce.
- Retail rates now differ sharply across cities because of local taxes, with petrol near Rs 99.51 per litre in Delhi and above Rs 110 in Kolkata, and related rises in CNG and PNG are increasing costs for drivers and small businesses.
- Analysts warn that the passthrough of higher import costs will raise transport and logistics expenses and could add upward pressure to inflation if crude prices stay elevated and shipping risks persist.