Fuel prices held steady despite global surge

Amid rising global energy costs, the Indian government has taken steps to protect consumers from sudden price shocks.

The Ministry of Petroleum and Natural Gas recently clarified that domestic fuel prices remain largely stable despite international volatility.

In Delhi, a standard 14.2 kg LPG cylinder continues to cost ₹913. Meanwhile, beneficiaries of the Pradhan Mantri Ujjwala Yojana still receive cylinders at a subsidised ₹613.

Oil marketing companies are currently absorbing losses to maintain these rates. As a result, households are shielded from global price fluctuations.

However, commercial LPG prices have increased. These cylinders, mainly used by hotels and industries, follow market-linked pricing.

The latest hike, effective April 1, reflects a sharp rise in international LPG benchmarks. In particular, the Saudi Contract Price surged due to supply disruptions near the Strait of Hormuz.

Still, commercial LPG accounts for less than 10% of total consumption, limiting its broader impact.

Petrol and diesel prices have also remained unchanged. In Delhi, petrol stands at ₹94.77 per litre, while diesel costs ₹87.67.

This stability comes despite global crude prices rising significantly in recent weeks. Public sector oil companies are bearing under-recoveries to prevent price hikes for consumers.

Only premium petrol variants have seen a slight increase of about ₹2 per litre. These fuels cater to a niche segment, so the overall effect remains minimal. Therefore, most motorists continue to pay unchanged rates.

The aviation sector has received partial relief as well. Aviation Turbine Fuel prices have been adjusted gradually instead of mirroring global spikes.

Airlines like IndiGo and SpiceJet have welcomed this move, noting that it may help stabilise fares.

Civil Aviation Minister Ram Mohan Naidu Kinjarapu described the approach as balanced and consumer-focused.

Global tensions involving the United States, Israel, and Iran continue to drive fuel price volatility.

Nevertheless, India’s strategy aims to cushion citizens while managing economic pressures effectively.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on March 16, 2017

Image Reference: https://pxhere.com/en/photo/1159054