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Steep fuel price hikes spark uproar in Parliament

Steep fuel price hikes spark uproar in Parliament

The Hindu
Tuesday, March 22, 2022 6:06 PM GMT

Increase to add up to ₹9 to ₹12 per litre of diesel and petrol; LPG cylinder up by ₹50

After a four and a half month freeze on fuel prices in the run up to five State Assembly elections, India’s oil marketing companies began recovering the higher crude oil costs that have prevailed in recent months on Tuesday, with an 80 paise hike per litre in retail prices for petrol and diesel, along with a ₹50 increase in domestic cooking gas prices.

Both Houses of Parliament were disrupted with Opposition members demanding a roll back of the hikes and walking out from Lok Sabha, and Rajya Sabha proceedings marred by protests by members who also trooped into the well of the House, demanding a discussion on the issue.

Economists expect the gradual fuel price hikes to add up to anywhere between ₹9 to ₹12 per litre of diesel and petrol, which could go up to as much as ₹20 a litre if the average global crude oil price rises to $110-120.

Such hikes would undo the excise duty cuts announced by the government in early November 2021 and push retail prices past the ₹100 per litre mark for both fuels. The price hikes are expected to feed into retail inflation that has already been over the 6% mark in the past two months, pinching households and denting consumption further.

Petrol and diesel prices were last revised in November 2021, though crude oil prices surged by nearly $30 a barrel since then, soaring even higher than $100 a barrel, following the invasion of Ukraine by Russia. Domestic cooking gas prices have been unchanged since October 2021.

According to PTI, petrol in Delhi will now cost ₹96.21 per litre as against ₹95.41 previously while diesel rates have gone up from ₹86.67 per litre to ₹87.47. The price of a non-subsidised LPG cylinder has been increased to ₹949.50 for each 14.2-kg bottle in Delhi.

Read full story on The Hindu
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