Fuel prices rise again across MP:Petrol reaches ₹110.75 in Bhopal, diesel now costs ₹95.91/Litre; second hike in 5 days

Petrol and diesel have become costlier by 90 paise per litre in the country from today, Tuesday. This is the second hike in fuel prices in less than a week. Earlier, on May 15, petrol and diesel prices were increased by ₹3 per litre each. Now, in Bhopal, 1 litre of petrol costs ₹110.75 and diesel costs ₹95.91. The new rates for petrol per liter in Indore-Jabalpur are ₹110.79, in Gwalior ₹110.69, and in Ujjain ₹111.27. Meanwhile, diesel will be available for ₹96.40 in Ujjain. In Bhopal, diesel will be available for ₹95.91, in Indore for ₹95.97, in Jabalpur for ₹95.98, and in Gwalior for ₹95.86 per litre. Prices of other things may also increase Why did petrol-diesel prices increase? The main reason for this increase is the fluctuation in crude oil prices in the international market. Before the war between Iran and America began, crude oil prices were $70, which have now risen to over $100 per barrel. Oil companies were under pressure due to rising crude prices. Therefore, companies have taken this step to compensate for the losses. If crude oil prices remain high for a long time, petrol and diesel prices may be increased further. Price increases up to four times the base price Fuel prices in the country are determined based on international crude oil prices and the rupee’s position against the dollar. Government oil companies update new rates every day at 6 am under the ‘Daily Price Revision’ or Dynamic Pricing System. Before reaching the consumer, various taxes and expenses are added to the oil prices, which we can understand in simple terms: 1. Crude Oil Price (Base Price): India imports about 90% of its crude oil needs from abroad. The price per litre of oil is determined based on the barrels purchased from the international market. 2. Refining and Company Charges: Crude oil is refined in the country’s refineries to produce petrol and diesel. This includes refining costs and company margins. 3. Central Government’s Excise Duty: After leaving the refinery, the central government levies excise duty and road cess on it. This is uniform across all states in the country. 4. Dealer Commission: The oil companies sell fuel to petrol pump owners (dealers) at a certain rate, to which the dealers’ fixed commission is added, which varies for petrol and diesel. 5. State Government’s VAT: Finally, state governments levy VAT or local sales tax according to their discretion. Since VAT rates vary from state to state, fuel prices also differ in various cities like Delhi, Mumbai, Kolkata, and Chennai. Prices increased in neighbouring countries, and now have increased in India The government had been arguing until now that there was a surge in global oil prices due to the West Asia war. As a result, petrol-diesel prices increased by 15% to 20% in neighbouring countries like Pakistan, Nepal, and Sri Lanka, but the burden was not passed on to Indian consumers. Prices had not changed since 2024, and cuts were made before the elections Petrol and diesel prices in the country had remained stable since March 2024. Just before the Lok Sabha elections 2024, the government had provided relief to the public by cutting prices by ₹2 per litre. Although technically fuel prices in India are regulated and companies can change rates daily based on the 15-day average price of international crude, they were not changed for a long time due to political sensitivity. Oil companies were incurring a loss of ₹30,000 crore every month According to the government, public sector companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum were running at a loss due to high crude oil prices in the international market. According to Sujata Sharma, Joint Secretary of the Ministry of Petroleum, companies are incurring a loss of about ₹30,000 crore every month on the sale of petrol, diesel, and LPG.