India to raise petrol and diesel prices after 4-month hiatus, traders say

Two dealers told Reuters late on Monday that fuel retailers in the Indian state will raise petrol and diesel prices by 0.8 rupees ($0.0105) per liter from Tuesday, the first increase since November.

The dealers, who declined to be named, said they had received information from oil companies regarding Tuesday’s retail price. Reuters has seen the new price note.

Three state-run fuel retailers in India – Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation – dominate fuel retailing in India, and tend to move their prices together.

Businesses cannot be reached for comment outside of normal business hours.

The recent price hike means consumers will be paying less than 1% more at the pump, despite the surge in global oil prices since the conflict in Ukraine began last month, and the depreciation of the Indian rupee.

A liter of petrol in Delhi will cost Rs 96.21 and diesel will sell for Rs 87.47 on Tuesday. One dealer said there may be a regular increase in pump prices.

India’s state-run oil companies have not raised prices since November 4, a move observers said helped Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) in crucial state assembly elections.

India, the world’s third largest oil importer and consumer, ships about 85% of its oil needs from overseas markets.

Domestic diesel and gasoline prices are linked to international prices for the two fuels, which come right after increases in crude oil prices.

(dollar = 76.1850 Indian rupees)

(Reporting by Nidhi Verma; Editing by Jean Harvey)

(The title and image for this report may have been reformulated only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

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