BENGALURU: In less than a week, the Centre on Tuesday increased petrol and diesel prices for the second consecutive time, raising retail fuel rates by around 90 paise per litre amid surging global crude oil prices triggered by the escalating conflict in West Asia.The latest revision comes days after fuel prices were increased by Rs 3 per litre on May 15 following a sharp rise in international crude prices and supply concerns linked to disruptions around the Strait of Hormuz, one of the world’s busiest oil transit chokepoints.With the fresh hike, petrol at Indian Oil Corporation (IOC) outlets in Bengaluru will now cost Rs 107.15 per litre, while diesel prices have risen to Rs 95.04 per litre.Global crude oil markets have remained volatile as the conflict in West Asia shows no signs of easing. Brent crude crossed the $111 per barrel mark on Tuesday, fuelling fears of further increases in domestic fuel prices in the coming days.Industry sources said oil marketing companies have resumed the practice of daily upward revision in retail fuel prices after a prolonged period of relative stability. Sources in the Karnataka Federation of Petroleum Traders (AKFPT) indicated that fuel prices could rise further if international crude prices continue to climb.“The uncertainty in West Asia and supply disruptions near the Strait of Hormuz are putting pressure on global crude prices. If the situation continues, consumers may have to brace for further hikes,” a petroleum traders’ representative said.The back-to-back increases are expected to put additional pressure on household budgets and raise transportation and logistics costs, which could lead to a rise in the prices of essential commodities. Commercial vehicle operators and app-based cab drivers expressed concern that repeated hikes in diesel and petrol prices would directly affect their operating costs and earnings.Economists have also warned that sustained fuel price increases could add to inflationary pressure, especially at a time when food prices remain volatile in several parts of the country.
