Report by Ananya Singh
Petrol and Diesel prices were hiked by Oil Marketing Companies (OMCs) today after around four months. The previous hike had been in November 2021 after which the central government had asked state governments to reduce Value Added Tax (VAT) on the fuels as the prices were extremely high.
This time, the hike for both fuels was equal at 80 paisa/liter (₹0.8/l), resulting in buyers having to pay less than 1% more at fuel pumps. Fuel prices have been generally adjusted on a day-to-day basis by OMCs since July 2021. However, there was a 137 day freeze during which time fuel prices were not changed.
This was because of the recent state elections that took place in Uttar Pradesh, Goa, Punjab, Manipur, and Uttarakhand.
The below table shows the prices of petrol and diesel in a few cities before and after the hike.
| City | Before Hike (Petrol/liter) | After Hike (Petrol/liter) | Before Hike (Diesel/liter) | After Hike (Diesel/liter) |
| Delhi | ₹95.41 | ₹96.21 | ₹86.67 | ₹87.47 |
| Mumbai | ₹109.98 | ₹110.82 | ₹94.14 | ₹95.00 |
| Kolkata | ₹104.67 | ₹105.51 | ₹89.79 | ₹90.62 |
| Chennai | ₹101.40 | ₹102.16 | ₹91.43 | ₹92.19 |
The price of non-subsidized Liquefied Petroleum Gas (LPG) used in homes as cooking gas was also increased by ₹50. Therefore, a standard LPG cylinder of 14.2kg will now cost ₹949.50 in New Delhi. Prices in Mumbai, Kolkata, and Chennai are static at ₹899.50/14.2kg, ₹926/14.2kg and ₹915.50/14.2kg respectively till now.
The last change in prices of LPG was in October 2021 when the prices had gone up by almost ₹100. After that, the prices remained the same until today in spite of crude-oil prices sky-rocketing due to the Russia-Ukraine conflict.
International hikes on the prices of energy and fuel are directly connected to the Russia-Ukraine conflict. With countries taking sides and international sanctions being imposed, the price of oil is increasing rapidly on a day-to-day basis. This is putting a strain on the Indian economy as India imports more than 85% of its oil and fuel.
Non-subsidized LPG
The government offers a quota of 12 LPG cylinders/household which can be bought at prices lower than the open market prices (subsidized rates). Therefore, OMCs sell these cylinders at a fixed price. All cylinders bought after exhausting the quota of 12 cylinders are non-subsidized LPG cylinders.