New Delhi, March 20 The price of premium or higher-grade petrol increased by Rs 2 per litre on Friday, while the rate of bulk diesel sold to industrial users was hiked by about Rs 22 per litre, reflecting the spike in global oil prices amid the conflict in the Middle East.
However, the price of normal petrol and diesel remains unchanged.
The price of 95-Octane petrol in Delhi has increased from Rs 99.89 per litre to Rs 101.89 in the national capital, according to industry sources.
Alongside, the price of bulk or industrial diesel was hiked from Rs 87.67 per litre to Rs 109.59 in Delhi.
International oil prices touched USD 119 per barrel on Thursday due to the intensifying Iran-related conflict, before falling back to around USD 108 per barrel.
A litre of normal petrol in Delhi continues to cost Rs 94.77, while the same grade diesel costs Rs 87.67 per litre.
Normal petrol typically has an octane rating of 91-92 and is suitable for standard engines, offering adequate performance for everyday driving. Premium petrol, on the other hand, has a higher octane rating of 95-98, making it ideal for high-performance or high-compression engines.
During a media briefing, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said there is no increase in the prices of normal petrol and diesel.
"There is a reported increase in the premium category, which hardly accounts for 2-4 per cent of the total petrol sold in the country," she said. "There is no increase in price for the common consumer."
Pricing decisions, she said, are made independently by oil companies, as petrol and diesel pricing was deregulated in 2010 and 2014, respectively. "It (pricing) is decided by oil marketing companies. The government does not regulate petrol and diesel prices," she added.
The government is closely monitoring global oil markets, but there are no immediate plans to raise retail fuel prices. Oil marketing companies are expected to absorb the current cost pressures for the time being.
"Our priority is to make energy available to all consumers, which we have been doing throughout the crisis. Until now, we have not increased the prices," she added.
Retail petrol and diesel prices have been frozen since April 2022, with fuel retailers like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) absorbing losses when crude prices are high and making profits when rates are low.
This meant that when global fuel prices went up in response to elevated crude prices, prices remained stable in India. And when softening of crude prices pushed down fuel rates globally, rates in India remained unchanged.
The government wants to continue protecting consumers, and this policy will continue unless there is a significant spike in crude prices.
India imports 88 per cent of its crude oil needs and roughly half of its natural gas requirement. These mostly come via the Strait of Hormuz. Following the US and Israeli attacks on Iranian government, military and nuclear facilities, Iran warned against shipping through the strait, and insurers withdrew coverage, effectively halting tanker movements.
Prices had risen to USD 119 per barrel in June 2022 in the aftermath of Russia's invasion of Ukraine. That year, oil companies had nominal profits, but in FY24, they posted a record Rs 81,000 crore profit, helping to recover past margin losses.
This year, the three companies have posted a profit of Rs 23,743 crore in the December quarter alone.
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