The resumption of fuel price hikes has fanned concerns of stoking inflation
The retail price of petrol and diesel on Wednesday was increased by 80 paise each in Delhi for the second consecutive day.
A litre of petrol in Delhi will now cost RS 97.01, while diesel price has been raised to Rs 88.27.
Petrol and diesel prices were on Tuesday hiked by 80 paise a litre each while domestic cooking gas LPG rates were increased by Rs 50 per cylinder as state oil firms ended an over four-and-half month hiatus in rate revision.
While LPG rates were last revised on October 6, 2021, petrol and diesel prices had been on a freeze since November 4 as five states, including Uttar Pradesh and Punjab, went to the polls.
LPG prices had gone up by close to Rs 100 per cylinder between July and October 6, 2021, triggering criticism.
The resumption of fuel price hikes has fanned concerns of stoking inflation, which is already above the targeted 6 per cent level. India relies on overseas purchases to meet about 85 per cent of its oil requirement.
The Opposition parties were quick to attack the government on the price rise, with Congress, TMC and Left parties forcing two adjournments of proceedings in the Rajya Sabha on Tuesday.
The benchmark Brent crude oil prices have risen sharply on the escalation in the Russia-Ukraine conflict and have put pressure on state fuel companies to increase the retail prices.
Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation - the three big state-run companies - dominate fuel retailing and tend to move their prices together.
The Oil Companies seems to have gone back to the daily price revision mechanism.