May 25 (Reuters) – India’s state-owned fuel retailers increased diesel prices by 2.71 rupees ($0.0283) per litre and petrol by 2.61 rupees, dealers said on Monday, the fourth hike in May to recoup some losses driven by higher crude costs due to the Iran war.
Indian state fuel retailers, which control 90% of the market, began raising pump prices from May 15 after elections were over in some key states.
Since then the state companies – Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp – have raised the prices of diesel by about 8.6% and petrol by about 7.8%.
A litre of petrol in New Delhi will now cost 102.12 rupees ($1.07), while diesel will be priced at 95.20 rupees ($0.9949) per litre.
Rising crude prices and supply disruptions after the closure of the Strait of Hormuz have hit India, the world’s third-largest oil importer and consumer.
New Delhi has also introduced austerity measures to curb fuel consumption and contain its oil import bill as policymakers brace for a prolonged energy shock.
Prices vary across states due to local taxes.
State retailers’ losses on fuel sales have also risen as some bulk customers are turning to cheaper retail pumps, causing shortages in some areas.
IOC in a statement on Saturday said its retail sales of diesel for May 1-22 had risen by 18% from a year earlier, and petrol sales were up by 14%.
($1 = 95.6900 Indian rupees)
This report is given by Reuters. The Sen Times holds no responsibility for its content.
