Amid the Iran-US war, earlier on 15th May, the fuel prices were increased by Rs 3. Oil companies were bearing losses but couldn't bear the losses, and now the fuel prices have increased by Rs 90 paise, which led to Rs 107.59 per litre petrol and Rs 94.08 per litre diesel in Mumbai.
According to experts cited by Reuters, a sustained hike in crude oil cost will have a huge impact on transportation, retail inflation and household budgets. This means that if the tensions continue in West Asia, then the inflation will become higher. This raises concerns about India's import bill, rupee weakening against the dollar and increasing pressure on fuel retailers.
Arvind Kumar, director of IOCL, said that Indian oil refineries are operating more than 100 percent to ensure uninterrupted fuel supply, reported Times of India. As per the India Express reports, Oil companies were losing Rs 40 per litre on diesel and Rs 14 per litre on petrol as there is a sudden increase in global crude oil prices. This will affect the common man's pockets; if the oil crisis continues, that would lead to higher inflation.
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