Fuel prices rise for 4th straight day
For the fourth consecutive day on Monday, petrol and diesel prices witnessed a rise in Nashik as global oil prices soared following the killing of a top Iranian general by US that has fanned fresh fears of conflict in the crude-rich Middle East.
The retail pump price of petrol was hiked by 9 paise per litre, while diesel saw an increase of 6.11 paise, resulting into hike in fuel prices for the fourth consecutive day in the city. Petrol in Nashik now costs Rs 80.60 per litre, while a litre of diesel comes for Rs 68.07.
India is 84 per cent dependent on imports to meet its oil needs and any spike in global prices has a direct bearing on its economy. Not just imports but even domestic crude oil, which forms the raw material for making petrol, diesel and other petroleum products, is priced according to international benchmarks.
Officials said there is no immediate threat of any supply disruption to India and the only impact would be felt in prices. For an economy that is struggling to recover from a six-year low growth rate of 4.5 per cent, a spike in oil prices poses a significant risk as it will not just stoke inflation but also lead to higher outgo on government subsidies on cooking fuel.
Prices were unchanged over the new year. Rates of petrol have been on the upswing since December 26 and that of diesel since November 29, 2019. Diesel prices have increased by Rs 2.78 per litre over this period while petrol has become costlier by 91 paise.