Close on the heels of Indian Oil Marketing companies raising premium petrol rates on higher crude prices, their Sri Lankan subsidiaries also follow suit. According to a PTI report, Lanka IOC, a subsidiary of Indian Oil, has also increased retail prices following the hike by the state-run Ceylon Petroleum Corporation (CPC).
On Sunday, Sri Lanka raised fuel prices by around 25%, marking the second such increase in a week and the third revision since March 1. With the latest revision, retail fuel prices are approaching levels seen during the country’s 2022 economic crisis, when Sri Lanka declared its first-ever sovereign default since gaining independence from Britain in 1948.
Rising crude oil prices and the disruption of the Strait of Hormuz have led to an increase in the prices of premium petrol in India and Sri Lanka.
Sri Lanka hikes fuel prices 25%; Lanka IOC also hiked prices
Sri Lanka’s private bus operators on Sunday warned that up to 90% of their fleet could stop operating after the sharp increase in fuel prices that came into effect at midnight. Operators said the steep rise in diesel prices could force them to halt services if bus fares are not revised.
The Lanka Private Bus Owners’ Association has demanded a fare hike to offset rising costs. Meanwhile, the 2022 financial crisis had triggered widespread protests that eventually forced then president Gotabaya Rajapaksa to resign and flee the country.
What’s the scenario in India?
The price of premium petrol and bulk diesel sold to industrial users has been increased. However, the prices of regular petrol and diesel remain unchanged, according to PTI.
Delhi: The price of premium 95-octane petrol in Delhi increased by Rs 2 per litre, from Rs 99.89 to Rs 101.89 per litre. Bulk or industrial diesel prices have seen a much sharper increase. In Delhi, the price has been raised from Rs 87.67 per litre to Rs 109.59 per litre.
Mumbai: The price increased from Rs 90.39 per litre to Rs 113.11 per litre, a rise of Rs 22.72 per litre.
Kolkata: The price rose from Rs 92.30 per litre to Rs 114.27 per litre, up Rs 21.97 per litre.
Chennai: Prices increased from Rs 92.54 per litre to Rs 113.38 per litre, a rise of Rs 20.84 per litre.
Regular petrol and diesel prices unchanged
Despite the hike in premium fuel and bulk diesel prices, the rates of normal petrol and diesel have not been revised in India.
A litre of regular petrol in Delhi continues to cost Rs 94.77, while diesel remains priced at Rs 87.67 per litre.
Normal petrol generally has an octane rating of 91–92 and is suitable for standard engines. Premium petrol has a higher octane rating of 95–98 and is designed for high-performance or high-compression engines.
Crude prices surge amid Middle East tensions
The International oil prices touched $119 per barrel recently amid escalating tensions involving Iran. The Brent crude is currently at $112.63 per barrel today.
India imports nearly 88% of its crude oil requirements and about half of its natural gas. A large portion of these imports passes through the Strait of Hormuz, a key shipping route.
With the inputs from PTI