New Delhi: The price of industrial diesel and petrol were increased on Friday. This comes as the crude prices have increased across the world due to tension in the Gulf region. Though fuel prices at pumps have not been increased by the oil companies, diesel used in factories or manufacturing units were increased by Rs 21.92 per litre, reports claimed.
In Delhi, the price was Rs 109.59 for a litre of diesel. Premium petrol was priced at Rs 101.89. The cost of normal fuel was at Rs 94.77 and Rs 87.67 per litre of diesel and petrol respectively in the capital city.
Sujata Sharma, joint secretary in the ministry of
petroleum, confirmed the development, according to media reports. She mentioned that there was no hike in the price of normal petrol, but some increase in a premium fuel price, which doesn’t account for bulk petrol consumption in a day, according to a news report.
The three government companies that market oil control about 90 per cent of the country’s fuel business in the retail sector. They save consumers from price volatility in the global market at the cost of their margins. Currently, these margins are under stress.
Those margins are now under severe stress. Some dealers said the companies had withdrawn credit facility. Now mostly they have to make instant payment for purchase of fuels.
Benchmark Brent crude surged to $119.5 per barrel on March 9. Prices remained above $100 per barrel before again increasing to $108.65 on Thursday. Brent was trading at $108.06 on Friday.
India, which imports about 88% of the crude oil it consumes, has maintained supplies through diversification.