India hikes petrol, diesel prices more than 3%, retailers say

May 15 (Reuters) - India has raised petrol and diesel prices for the first time in four ​years by 3 rupees ($0.03) per litre, or more than 3%, according to ‌retailers in Delhi on Friday, to recoup some of the losses incurred due to higher global crude oil prices.

Global oil prices spiked to more than $120 a barrel following the closure ​and severe disruption of the Strait of Hormuz by the war ​that started with U.S.-Israeli attacks on Iran, before pulling back to around $100 ⁠to $105.
India is one of the last major economies to raise retail fuel prices. ​Diesel in Delhi will cost 90.67 rupees a litre and petrol 97.77 rupees, ​reflecting increases of 3.4% and 3.2%, respectively, from 87.67 rupees and 94.77 rupees a litre.
The direct impact of the fuel price hike would be muted at about 15 basis points on ​consumer price inflation, although the indirect impact will be larger, said Madhavi Arora, ​chief economist at Mumbai-based Emkay Financial Services.
State-run Indian Oil Corp (IOC.NS), Hindustan Petroleum Corp (HPCL.NS), and Bharat ‌Petroleum ⁠Corp (BPCL.NS), which together control more than 90% of India's 103,000 fuel stations, tend to fix diesel and petrol prices in tandem.
On Sunday, Prime Minister Narendra Modi urged a spate of measures including fuel conservation, work-from-home practices, and limits on travel and ​imports, as surging global ​energy prices put ⁠pressure on the country's foreign exchange reserves.
Analysts and opposition parties said state retailers had delayed raising prices during key state ​elections. The polls ended this month, with Modi's BJP winning two ​of four ⁠states and expanding its influence.
Oil ministry official Sujata Sharma in April said retailers lose about 100 rupees per litre on diesel and about 20 rupees on petrol.
In late ⁠March, Russia-backed ​Indian private refiner Nayara Energy had raised pump ​prices to mitigate some of its revenue losses from retail sales.
($1 = 95.7625 Indian rupees)