The demand for petrol and diesel in India has been rising at a rate of 3 per cent, and is currently at five million barrels every day. With a rising economy, India has been satiating the thirst for fuel with oil secured from Russia and Iraq at lower rates, while the west has limited its options amid conflict in Europe. Despite this, the prices of petrol and diesel in India remain unchanged, five months after they last went down thanks to a reduction in levies.

As of Friday, Petrol has been selling at Rs 106.31 a litre in Mumbai while diesel is priced at 94.27 per litre.

For motorists in the national capital Delhi, Rs 96.72 per litre is the price for petrol, while they are paying Rs 89.62 for diesel.

Kolkata is right after Mumbai when it comes to petrol at Rs 106.03 per litre, while diesel if third costliest at Rs 92.67 a litre.

Chennai has the second most expensive fuel, with petrol for Rs 102.63 a litre, and diesel at Rs 94.24 per litre.

Big three oil suppliers under stress

But the three state-owned oil firms in India are feeling the pressure of rising LNG prices, which affects their refining process, and hits their margins. Hence they are now looking for alternatives such as naphtha an diesel for crude refinery operations. The companies are already struggling to bounce back from a record loss they suffered earlier this year because of a price freeze ahead of UP elections.

UN chief objects to India’s policies

Although India still relies heavily on oil, gas and coal, and is trying hard to satiate demand while keeping prices in control, the UN Secretary-General Antonio Guterres has expressed displeasure over the country’s subsidies on fossil fuels, which are seven times higher than those given for clean energy.

(With inputs from agencies)