Government Hikes Fuel Prices Again: Economist Sharad Kohli Explains What Happens Next

本站添加: 2026-05-19

[00:00:00]per se and diesel prices going up by 0.83 per se. So now petrol is costing more across metros. Fuel prices have seen uh increases. Petrol is rising in in multiple cities and uh this is second hike in a week. Second high in a week.

[00:00:18]Lace revision comes amid continued a lot of the volatility in global oil rates adding to the burden on consumers after the previous hike earlier this week.

[00:00:34]All right, let's go straight across to Mr. Shhat Kohi economist who's joining us on the phone line. Thank you for joining us here Mr. Sharat Kohli. Uh now we see this the second hike in a week.

[00:00:45]Fuel prices have been raised again. uh your first analysis of uh this rise. We did expect that there would be fuel rises but this is the second time in a week that the prices have risen. Yes, Mr. Kohli.

[00:01:02]>> Uh good morning Shivangi to you and your public TV viewers. Um well I think this is a very odd amount first of all and it's a very small amount as well. So this gives rise to the speculation that the underreovery being uh being faced by the oil marketing companies Hindustan Petroleum, Bat Petroleum and Indian oil well that was quite substantial. It was on disage to be at,000 a day which is 30,000 crores per month. So I think this to me seems like Shivangi a mathematical adjustment they must have targeted recovering the underreovery to a certain extent and when 3 rupees was hiked they must have felt that this is not covering that much amount what they had targeted so this adjustment has been made because this is true that 3 rupees wasn't enough when it was done on Friday but then uh making this adjustment of 91 pesa or 87 pesa seems like a very odd amount and a very tiny little amount to make because even if they were wanted to in in installments then it should have been a round figure because we are still quite far away from the numbers that we have on record and you've been also talking about them. This is quite far away from the under recovery. So this seems like a mathematical adjustment. Well, you know something must have fell short of their recovery which they wanted to cover out of under recovery and they have made this adjustment. However, there is no taking away the fact that this is going to put additional load on the common man and the cascading effect of especially diesel on the on inflation is going to be felt because all the transportation is going going to go up. We've saw CNG prices the second installment coming uh you know you know which is going to raise the prices of the commuting you know whether it's auto rickshas or or cababies so I think yeshuh let let's see let's wait and see all eyes on crude oil all eyes still hovering around $ 109 to $110 which is which is definitely and this yes and no on Iran happening from President Trump he's he's now again deferred his looming attack on Iran which he was threatening over the couple of days I just came to know he's postponed it again on at behest of UAE or Saudi Arabia whatever that's a typical Donald Trump I think I think it's all driven by the crude oil prices because there's again hope that Russia has given you know the waiver which was expiring uh which President Trump had waved some time ago I'm told just now that he's again extended that waiver so that just might cool down the crude oil prices so things are very volatile as of now Shivangi and every day seems to be a new day as far as this whole crude game is concerned.

[00:03:33]>> Mr. Kohley, you were mentioning about that uh waiver. So, US sanctions had uh in fact there was a waiver on US sanctions on Russian seaborn oil. You were discussing that. And secondly, the price hike is also coming as international crude oil prices continue to rise sharply due to the ongoing conflict in West Asia. So are these two factors which are surging the fuel prices back home here?

[00:04:01]>> Well Shivangi I think the oil marketing companies for fuel for fuel price rise we need to keep an eye on what the oil marketing companies are looking at at this point of time. I think they are keeping a very microscopic watch on their bottom lines which is the profits or the losses for that matter. We don't know. I mean because they are supposed to be submitting quarterly accounts to uh the stock exchanges because they're all the three companies which have 90% market share are listed in stock markets. So I think they must be observing their bottom lines and the losses that they are the the bleeding which they are facing at this point of time and they will be going as per the as per consultations with the government because the common man it is true we found the voices from opposition that you know you know the government has passed on when the prices of crude oil were low you know you know people were being charged higher amount of petrol and now when the prices internationally have risen you know they have being passed on so they were not reversed at that point of time so I think uh things will be done very prudently and that's what I'm I'm hoping but then yes every pesa of increase in crude oil we should keep in mind has got a rippling and a cascading effect and this is going to you know you know fuel inflation more importantly I'm anxiously waiting for the inflation numbers the CPI numbers we saw the wholesale price index up to 8.3 uh well not many viewers know that if wholesale price index is 8.3 it eventually converts to retail price CPI which is called the consumer price index uh in the coming months. So I think people should gear up for for paying higher. Their home budgets are going to go a little haywire in the in the times to come. Shivangi.

[00:05:41]>> All right. Uh well thank you for getting us all those details Mr. Shahhat Kohli economist joining us here as we decode the latest update which has come in. So petrol and diesel prices have increased by 90 pes. Uh this is