Ira Singh 
A sharp increase in industrial diesel prices by public-sector oil marketing companies (OMCs) is expected to add fresh pressure on inflation, as elevated energy costs flow through key sectors such as manufacturing, logistics, and power generation.Amid the ongoing tensions in West Asia, state-run fuel retailers including Indian Oil Corporation Limited (IOCl), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) on Friday implemented a selective price hike. While retail fuel prices remain unchanged, diesel sold for industrial use has witnessed a steep jump of over 25%.
According to information,in Delhi the price of industrial diesel has been increased to Rs109.59 per litre from Rs87.67 earlier—an increase of Rs21.92 per litre. However, diesel for retail consumers, including vehicle owners and transport operators, continues to be sold at Rs87.67 per litre, providing some relief to end-users.The hike is significant as diesel remains a critical input across industries. Higher fuel costs are likely to push up production expenses, which may eventually be passed on to consumers, thereby intensifying inflationary pressures across the supply chain.
Recent data already indicates a firming inflation trend. Retail inflation, measured by the Consumer Price Index (CPI), rose to a 10-month high of 3.21% in February, while wholesale price inflation climbed to an 11-month high of 2.13%, reflecting underlying cost pressures in the economy.In addition to diesel, OMCs have also raised prices of premium petrol variants by up to Rs2.35 per litre. Products such as XP95, Speed, and Power—marketed by the three companies—have seen price increases ranging between Rs2.09 and Rs2.35 per litre. However, the price of regular petrol in Delhi remains unchanged at Rs94.77 per litre.
According to Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, the increase is limited to premium fuel categories and bulk diesel. She noted that premium petrol constitutes only 2–4% of total petrol consumption in the country.Sharma emphasized that fuel pricing has been deregulated, with petrol prices freed in 2010 and diesel in 2014, leaving pricing decisions to oil marketing companies rather than the government.
Economists raised concern that the rise in industrial fuel costs could have a cascading impact on inflation in the coming months. Devendra Pant, Chief Economist at India Ratings and Research, expects wholesale inflation to accelerate further, projecting the Wholesale Price Index (WPI) inflation to rise to around 3.7% in March.With global energy markets remaining volatile due to geopolitical tensions, analysts believe sustained cost pressures could pose challenges for inflation management and economic stability in the near term.
(Business Correspondent)
