By Admin 
After the increase in the prices of premium petrol, now industrial diesel (Diesel Price Hike in India) has also become expensive. Indian Oil Corporation (IOC) has made a major revision in the rate of industrial diesel, increasing it from ₹ 87.67 per liter to ₹ 109.59 per liter. After this decision, it is expected that the industrial sector, logistics and transport costs will be affected.
Industrial diesel is not sold at common petrol pumps. It is purchased directly by factories, big generators, mining companies, construction sites and power plants. Earlier, oil companies had increased the prices of branded and high-octane category premium petrol by about ₹ 2 per liter. However, at present there has been no change in the prices of normal petrol, which has provided immediate relief to the common consumers.
Inflation will increase due to increase in fuel prices
According to economic analysts, if this trend in fuel cost continues, its effect may gradually be visible on inflation and supply chain as well. At present, the market’s eyes are on international oil prices and the next decisions of oil companies. Energy market experts say that this increase is a sign of instability in the global crude oil market and increasing concern about supply. The ongoing conflict in the Middle East has increased pressure on the global energy supply chain, increasing costs for oil companies. For this reason, prices have been revised in select fuel categories.
Increase in price of industrial production will affect common people
However, it is a matter of relief for the common consumers that there has been no change in the prices of normal petrol and diesel at present. Analysts believe that the impact of such increase in fuel cost may indirectly reach the common consumers as well. When industrial production and freight transportation become expensive, its effect is ultimately reflected in the prices of goods and services, which can lead to upward pressure on inflation.
India imports a large part of its oil needs, hence fluctuations in the international market have a direct impact on domestic fuel prices. At present, the common motorists have definitely got immediate relief due to the stable prices of petrol and diesel, but the possibility of further changes cannot be ruled out amid the uncertainty of the energy market.
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