Nagpur: After a hike in prices in petrol, diesel and LPG, the prices of CNG and cooking gas piped to household kitchens (PNG) in the national capital were hiked on Thursday by Re 1.
This is the third increase in CNG rates in March which follows a spike in input prices across the globe. The CNG prices in NCT of Delhi have been increased to Rs 59.01 per kg from existing Rs 58.01.
Petrol and diesel prices on Wednesday were hiked by 80 paise per litre for the second day in a row after 137 days. The last price hike in fuel prices was witnessed on November 4, 2021.
What could be the possible reason for the hike in fuel prices in India?
Speculations rife that the fuel prices rose as assembly elections have ended in Uttar Pradesh, Punjab, Goa, Manipur and Uttarakhand, with BJP winning majority of the states.
However, as per reports, the main reason due to the price hike in the country is due to a rise in crude oil prices. The oil prices are at an all-time high after Russia invaded Ukraine.
India imports about 85% of its oil needs, making it the world’s third-biggest oil importer and consumer. The country’s local petrol and diesel prices are linked to the international costs of the two fuels, which move proportionally to crude prices.
The crude oil prices have risen sharply, nearly $115 per barrel, mainly due to the Russia-Ukraine conflict. The on-going conflict has put pressure on the state fuel giants– Indian oil corporation, Bharat petroleum Corporation and Hindustan petroleum corporation to increase the prices.
The latest price rise in the fuels mean that the common man will be paying less than 1% extra more at the pump, despite a substantial increase in global oil prices since the conflict in Ukraine began last month.
In the latest, the crude oil prices jumped by more than $4 on Monday with Brent crude climbing above $111 a barrel. The development comes after the EU considered joining the US in the Russian oil ban. Prices are likely to move higher ahead of talks between the European Union and US President Joe Biden in a series of summits that aims to harden the West’s response to Moscow over its invasion of Ukraine.