Gasoline and diesel prices on the rise; LPG reaches record level



NEW DELHI: State-run fuel retailers hiked fuel prices across the board on Tuesday, a day after the BJP completed the selection of chief ministers in the four states it won in the recent Assembly polls. The rise in petrol, diesel and LPG sparked a howl of protest from the opposition who called it a “triple onslaught”.
The first price increase in five months saw retailers raise the base price of petrol and diesel by 80 paise per litre. The actual increase at the pump will be a few paise higher depending on the differential impact of VAT in each state. Petrol in Kochi will cost Rs 105.18 per liter and diesel Rs 92.40 per litre, while in Thiruvananthapuram, a liter of petrol will cost Rs 106.36 and diesel Rs 93.47.
The price of domestic LPG (liquefied petroleum gas) refills was also increased by Rs 50 each, marking the first increase in almost six months. LPG prices are at record highs after the hike and consumers will have to bear the brunt as the subsidy has been removed since May 2020.

Petrol, diesel and LPG prices increased after 5 months

The sharp increase, although inevitable, will weigh on household budgets by making goods and services more expensive. PHDCC Chairman Pradeep Multani said companies’ price-cost margins will be affected as raw materials and utilities will cost more.
More expensive fuel will also fuel inflation, as LPG, petrol, diesel and jet fuel – the prices of which were increased by 18% last week – have a weight of 6.8% in the index. wholesale price. This could prompt the RBI to tighten monetary policy, which will impact interest rates and payouts.
Inflationary pressure could rise further in the coming days as fuel retailers are expected to raise prices further to cover a better chunk of their under-recovery, currently estimated at Rs 18-20.


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