Amid Middle East Crisis, Industrial Diesel Prices Hiked By Rs 28 A Litre

State-run oil marketing companies have raised the price of industrial diesel by Rs 28.22 per litre, an increase of more than 25 per cent, with the new rate set at Rs 137.81 per litre. The adjustment was made on Wednesday, by companies including the Indian Oil Corporation Ltd and Bharat Petroleum Corporation Ltd. 

According to internal communication seen by NDTV Profit, it applies to high-speed diesel, known as HSD, when sold in bulk directly to commercial and industrial establishments. The companies cited the ongoing conflict in the Middle East and the resulting rise in crude oil costs as the reason for the move. In the same internal notification, the price of furnace oil was increased by Rs 23.77 per litre.

The companies have told customers that supplies to industrial and bulk users will continue without interruption. There has been no disruption in availability, they said. 

Prices at petrol pumps for ordinary motorists and diesel car owners have been left unchanged. This is the second significant increase in industrial diesel prices in less than two weeks. On March 20, the same companies raised the bulk price in Delhi from Rs 87.67 per litre to Rs 109.59 per litre, an increase of Rs 22. 

At the same time, they raised the price of premium 95-octane petrol by Rs 2 per litre. International oil prices reached USD 108.40 per barrel on Thursday as the conflict involving Iran intensified.

To keep fuel available inside India, the central government has placed an export levy of Rs 21.5 per litre on diesel and Rs 29.5 per litre on aviation turbine fuel. 

The Ministry of Petroleum and Natural Gas said all refineries in the country are running at high capacity. Crude oil inventories are adequate and stocks of petrol and diesel are sufficient to meet demand.

Retail prices for petrol and diesel sold to the public have not been altered.