Third fuel price hike in 10 days pushes petrol beyond Rs 100 in Shimla
Shimla, May 23,
Petrol and diesel prices continued their upward march across the country as fuel rates were increased for the third time within the last 10 days, further burdening consumers already grappling with inflation.
This time, petrol prices have gone up by 87 paise per litre and diesel by 91 paise per litre. With the latest hike, petrol prices in Shimla have crossed the ₹100 mark for the first time. Petrol in the state capital is now being sold at ₹100.14 per litre, while diesel has reached ₹92.17 per litre.
In Sujanpur of Hamirpur district, petrol is priced at ₹99.96 and diesel at ₹90.44 per litre. In Luhri, petrol costs ₹100.01 and diesel ₹92 per litre. In Mandi, petrol is selling at ₹99.06 and diesel at ₹91.42 per litre, while in Una, petrol has reached ₹97.08 and diesel ₹89.78 per litre.
The repeated increase in fuel prices is expected to have a cascading impact on inflation and household expenses. Experts believe the hike would directly affect transportation costs, leading to higher bus fares and freight charges. Consequently, prices of essential commodities, including vegetables, fruits, ration, and other goods transported from outside the state, are also likely to rise further.
This marks the third fuel price increase in just 10 days. Earlier this week, petrol and diesel prices were increased by around 90 paise per litre, while a few days before that, rates had already been raised by nearly ₹3 per litre.
The latest hike is expected to hit the horticulture sector as well. With the apple season set to begin next month in Himachal Pradesh, transportation costs for apple growers are likely to rise sharply, affecting profit margins.
The state’s largest truck union in Baddi had already increased freight rates four days ago. Rising transport expenses have also pushed up the prices of construction materials such as sand, gravel, cement, and steel, making house construction in hilly areas more expensive.
Farmers are also expected to feel the impact, as higher diesel prices will increase the operational cost of tractors, irrigation pumps, and other agricultural machinery, ultimately raising the cost of cultivation and food grain production.
According to experts, the primary reason behind the hike is the sharp fluctuation in international crude oil prices. Crude oil, which was trading at around US$70 per barrel before the escalation of tensions between the United States and Iran, has now surged beyond US$100 per barrel in the international market.
Experts warn that if global crude prices remain elevated for a prolonged period, further hikes in petrol and diesel prices cannot be ruled out. Hike in price might be to regulate demand of fuel and panic buying.
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