The government has implemented a significant hike in petrol and diesel prices, raising them by Rs4.53 and Rs8.14 per litre, respectively.
As of April 16, the new rates stand at Rs293.94 for petrol and Rs290.38 for diesel. This increase comes amid expectations due to higher international market rates, despite a reduction in import premiums and a slightly improved exchange rate.
Petrol primarily fuels private transport, small vehicles, rickshaws, and two-wheelers, while diesel powers heavy vehicles, trains, and various agricultural machinery such as trucks, buses, tractors, tube wells, and thrashers.
Fuel prices undergo revision by the government every fortnight, influenced by several factors including international market prices and the exchange rate of the rupee.
On Monday, oil prices experienced a decline of approximately 1% per barrel following Iran’s attack on Israel, which turned out to be less damaging than initially feared. This alleviated concerns of a rapid escalation of conflict that could disrupt crude oil supply. Brent futures for June delivery dropped by 91 cents to $89.54 per barrel, marking a 1% decrease, while US crude futures for May delivery fell by 87 cents to $84.79 per barrel, also reflecting a 1% loss.
Oil benchmarks had surged on Friday in anticipation of Iran’s retaliatory strike, leading to prices reaching their highest levels since October.
