Centre Signals Sharp Hike in Petrol, Diesel Prices After LPG Rise

New Delhi: Following the recent hike in LPG prices, the Central government is now preparing to sharply increase petrol and diesel prices as well, with the Petroleum Ministry signalling a possible increase of up to ₹5 per litre. In a foretaste of what is to come, bulk diesel prices were already raised by ₹12 per litre on Thursday — from ₹137 to ₹149 — a move that will hit public sector transport systems including KSRTC, the Railways, and large industrial units that are bulk consumers.

Aviation turbine fuel prices for international services have also been raised by $76.55 per kilolitre (approximately ₹7,265).

The government has cited a rise in Brent crude oil prices to $126 per barrel as justification for the hike. However, critics point out that crude had already fallen back to around $108 per barrel shortly after. Before the West Asia conflict began, crude was trading at an average of just $70 per barrel in February — yet the government did not reduce fuel prices by even a rupee at that time.

Current retail prices in Kochi stand at ₹105.87 per litre for petrol and ₹94.54 for diesel. The move has drawn sharp criticism, with opposition parties and economists pointing out that in July 2008 — when crude hit a then-record $147 per barrel during the global financial crisis — domestic petrol was priced at just ₹50.50 per litre and diesel at ₹34.80, underscoring the dramatic disconnect between crude prices and retail fuel pricing that has widened under the current government's taxation regime.