The prices of petrol and diesel have been increased once again in the country. In Delhi, petrol has become costlier by 87 paise per liter and diesel by 91 paise per litre. The special thing is that this is the third time in the month of May that fuel prices have been increased. Earlier this week, it was increased by 90 paise per liter and a few days ago by Rs 3 per liter. The continuously rising prices have increased the concern of the common people.
Effect of crude oil prices
The biggest reason for the increase in the prices of petrol and diesel is the rise in the prices of crude oil in the international market. There is volatility in the global oil market due to the ongoing tension in West Asia and the uncertain environment between America and Iran.
India buys about 85 percent of its crude oil needs from abroad. In such a situation, the cost of oil in the international market has a direct impact on the fuel prices of the country. On Friday, Brent crude reached above $104 per barrel, while American WTI crude was also seen trading around $97 per barrel.
Increased pressure on oil companies
Government oil companies were keeping the prices of petrol and diesel stable for a long time. According to the central government, companies were incurring a loss of about Rs 1,000 crore every month. In such a situation, now companies have started increasing the prices gradually.
In the last two years, India had tried to get relief by buying cheap crude oil from Russia. But now due to rising prices in the global market and uncertainty about supply, that profit also seems to be decreasing.
Impact on common man’s pocket
The effect of petrol and diesel becoming expensive is not limited to drivers only. Increase in transport costs also affects the prices of food items, vegetables and everyday items. In such a situation, inflation is expected to increase further in the coming days.
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