Petrol and diesel rates surge in MP from today:Bhopal petrol reaches ₹109.71 while Indore diesel climbs above ₹95 per litre

The impact of rising global crude oil prices triggered by tensions involving Iran, the United States, and Israel is now being felt in Madhya Pradesh, with petrol and diesel prices increasing by nearly ₹3 per litre across the state. The revised fuel rates came into effect from 6 am on Friday. In Indore, petrol prices rose to ₹109.86 per litre, while diesel reached ₹95.06 per litre. Premium petrol prices climbed to ₹119.56 per litre. Previously, petrol was being sold at ₹106.58 per litre and diesel at ₹91.97 per litre. Similarly, in Bhopal, petrol prices increased from ₹106.68 to ₹109.71 per litre, while diesel prices rose from ₹91.87 to ₹94.88 per litre. In Ujjain, petrol is now priced at ₹110.16 and diesel at ₹95.34 per litre. In Jabalpur, petrol costs ₹110.10 and diesel ₹95.28 per litre. Meanwhile, Gwalior recorded petrol prices at ₹110.02 and diesel at ₹95.19 per litre, while in Singrauli petrol reached ₹109.92 and diesel ₹95.14 per litre. Rise in transport and daily commodity costs expected According to Rajendra Singh Vasu, president of the Madhya Pradesh Petrol Diesel Association, the increase has been driven by global instability and rising crude oil prices. He warned that the fuel price hike is likely to impact transportation costs, freight charges, and prices of everyday commodities across the state. Why have fuel prices increased? The primary reason behind the increase is the sharp rise in international crude oil prices. Before tensions escalated between Iran and the United States, crude oil was trading near $70 per barrel. It has now reportedly crossed $100 per barrel. Oil companies had been under financial pressure due to rising crude prices and are now attempting to offset losses through retail fuel price hikes. Officials indicated that if crude prices remain elevated for a prolonged period, further increases in petrol and diesel prices may follow. Prices rose earlier in neighbouring countries The government had earlier maintained that although global oil prices had surged due to conflict in West Asia, the burden had not yet been passed on to Indian consumers. Countries such as Pakistan, Nepal, and Sri Lanka had already witnessed fuel price increases of 15% to 20%, while India had kept retail prices stable until now. Fuel prices had remained unchanged since March 2024 Petrol and diesel prices in India had largely remained unchanged since March 2024. Ahead of the 2024 Lok Sabha elections, the government had reduced fuel prices by ₹2 per litre to provide relief to consumers. Although fuel prices in India are technically deregulated and oil companies are allowed to revise rates daily based on the 15-day average of international crude prices, political sensitivity had reportedly delayed revisions for an extended period. Oil companies reportedly losing ₹30,000 crore every month According to government estimates, state-run oil companies including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum had been incurring heavy losses because of elevated crude oil prices. Petroleum Ministry Joint Secretary Sujata Sharma reportedly stated that these companies were losing nearly ₹30,000 crore every month on the sale of petrol, diesel, and LPG. Experts say further price hikes may be needed Experts believe the current ₹3 increase may still not be enough to fully offset losses. According to estimates, oil companies may eventually need to increase petrol prices by as much as ₹28 per litre and diesel prices by ₹32 per litre to reach a break-even point. Analysts claim petrol prices are still nearly 29.5% below required market levels, while diesel prices remain around 36.5% lower. If tensions involving Iran continue to disrupt global energy supplies, further fuel price hikes may be unavoidable. Earlier excise duty cuts helped stabilise prices To prevent earlier increases in fuel prices, the government had previously reduced special excise duties on petrol and diesel by ₹10 per litre each. Excise duty on petrol had been reduced from ₹13 per litre to ₹3, while the duty on diesel was reduced from ₹10 to zero. Following the cuts, central excise duty on petrol declined from ₹21.90 to ₹11.90 per litre, while diesel duty fell from ₹17.80 to ₹7.80 per litre. The move had helped keep retail fuel prices stable despite volatility in global crude markets. PM Modi had urged citizens to conserve fuel Prime Minister Narendra Modi had recently advised citizens to use petroleum products cautiously in view of geopolitical tensions in West Asia. Speaking at an event in Telangana, Modi said the situation demanded careful use of petrol, diesel, and gas, stressing that imported petroleum products should be consumed only when necessary. He said reducing fuel consumption would help conserve foreign exchange reserves and minimise the adverse effects of global conflict on India’s economy.