Premium petrol up Rs 2 per litre amid global oil spike

NEW DELHI: Feeling the pinch of a surge in global crude prices, oil marketing companies on Friday increased the retail price of 95-octane premium petrol by nearly Rs 2 a litre and jacked up the rates of industrial diesel by Rs 22 a litre.At the same time, IndianOil, the country’s largest fuel retailer vowed to adopt a “responsible pricing” strategy in an indication that pump prices for normal petrol and diesel may not be raised immediately. In a social media post, IndianOil said there is no automatic fuel price revision in India despite a surge in global fuel prices. “A limited revision applies only to premium petrol XP-95, with minimal impact on overall consumption. Through evolving global conditions, the focus remains clear: consistent supply, responsible pricing, and service you can rely on.”

The retail price of normal petrol and diesel, and aviation turbine fuel, remain unchanged. Officials said less than 5% of people use the premium category of petrol in their vehicles.“Some increase is reported in the premium category, which hardly makes up 2-4% of the entire petrol sold in the country,” said Sujata Sharma, joint secretary in the petroleum ministry. Sharma added that the prices of petrol and diesel were deregulated in 2010 and 2014, respectively, and are decided independently by oil companies.The cost of crude for Indian refiners has soared 120% since the conflict in the Gulf broke out on Feb 28, hitting $156.29 a barrel on Friday, wiping out the profits for domestic oil marketing companies. The price of global benchmark Brent crude also reached close to $110 a barrel, nearly 50% higher than the pre-conflict price of $72.87.Officials said the OMCs make profits when rates are low, absorbing losses when crude prices are high.According to oil companies, high-speed diesel for industrial users in Delhi is now available at Rs 109.59 per litre. Officials in oil marketing companies said prices of this category of diesel are linked to international prices and are automatically revised every fortnight.A litre of normal petrol – with an octane rating of 91 and suitable for standard engines – in Delhi continues to cost Rs 94.77, while the same grade of diesel costs Rs 87.67 per litre. The retail prices of normal petrol and diesel were last revised in April 2022.India imports nearly 90% of its crude oil needs and roughly half of its natural gas requirement, which has been disrupted due to the closure of the Strait of Hormuz.