Why fuel prices hiked seven times in eight days? Finance Minister explains
Petrol and diesel prices have been increased seven times in the last eight days, breaching ₹100 per litre mark for petrol in Delhi on Tuesday. Finance Minister Nirmala Sitharaman on Tuesday said that disruptions in supply chains and the resultant increase in global crude oil prices due to the war between Russia and Ukraine has resulted in the record hike in motor fuel prices in the last eight days.
Per litre petrol and diesel prices were increased on Tuesday by 80 paise and 70 paise respectively. Petrol and diesel prices in the last eight days have increased by ₹4.80 per litre. This comes as a record increase in the eight days since the daily price revision was implemented in June 2017.
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On Tuesday, a litre of petrol and diesel cost 100.21 and ₹91.47 respectively. The fresh hikes in fuel prices have been mopping all the benefits achieved during 137 days of hiatus between early November 2021 and mid-March 2022.
The petrol and diesel prices have been surging keeping pace with the international oil prices, as India imports around 85 per cent of its total fuel need. Crude oil prices in the international market had started surging days before Russia's invasion of Ukraine started. The crude oil price is expected to increase further in the coming days owing to the Russia-Ukraine war, which would result in further hikes in petrol and diesel prices in India.
Speaking about the recent price hikes, Finance Minister Nirmala Sitharaman has said in Parliament that the disruption and a resultant increase in the price of global oil and also disruption to supply are all happening since a couple of weeks ago and the government is responding to it. She also said that the government is taking various steps in response to the rise in global oil prices.