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Petrol-Diesel Prices: A leading domestic brokerage firm has called for a further hike in petrol and diesel prices. Read on to discover the underlying reasons behind this demand.

Petrol-Diesel Prices: People across the country are already deeply concerned about the spiraling costs of petrol and diesel. Amidst this, a new report has emerged that is likely to heighten public anxiety even further. Specifically, Kotak Institutional Equities—a major domestic brokerage firm—has stated that, given the current circumstances, it may become necessary to raise petrol and diesel prices by an additional ₹13 to ₹17 per liter. The firm contends that the price hikes implemented so far are insufficient to compensate for the losses currently being incurred by oil marketing companies.

Why Such a Major Demand?

According to media reports, crude oil prices in the international market have been on a continuous upward trajectory. Rising geopolitical tensions in the Middle East, coupled with concerns regarding supply stability, have driven up the cost of crude oil. Since India imports the vast majority of its oil requirements from abroad, these global factors are having a significant impact on the domestic economy. Kotak notes that state-owned oil marketing companies are currently facing substantial financial losses. These companies are reportedly incurring monthly losses amounting to approximately ₹25,000 crore. Specifically, they are losing about ₹14 per liter on petrol and roughly ₹11 per liter on diesel—meaning the losses they are absorbing exceed the actual selling price of the fuel.

Prices Have Already Risen Twice

Over the past few days, petrol and diesel prices have already been hiked on two separate occasions. Initially, prices were raised by ₹3 per liter, followed by a subsequent hike of 90 paise per liter. Despite these adjustments, Kotak maintains that the increases implemented thus far remain insufficient. Consequently, the firm has warned that if crude oil prices persist at their current elevated levels, consumers could face an even more severe financial shock in the near future.

How Will It Affect the Common Man?

Whenever the prices of petrol and diesel rise, the impact is felt directly in the common man's pocket. It is not just the cost of driving that increases; rising transportation expenses also drive up the prices of food, daily necessities, and other commodities, thereby disrupting the entire household budget. Experts believe that this fuels inflation. Everything—from milk, fruits, and vegetables to groceries and even online delivery services—becomes more expensive. It is safe to assume that if oil prices remain elevated in the international market, the economic pressure is likely to intensify. Currently, all eyes remain fixed on the price of crude oil. If tensions subside and oil prices drop, the general public will certainly find relief. However, if the situation deteriorates further, petrol and diesel could become even more expensive in the days to come.