Modi to hold meeting with Chief Ministers today; fuel prices under watch

NEW DELHI: Prime Minister Narendra Modi has convened an emergency meeting of Chief Ministers to discuss the impact of the West Asian conflict on the country and measures to tackle the situation. The meeting will be held via video conference at 6:30 pm on Friday. Issues such as the rising prices of petrol, cooking gas, and other energy products are expected to be discussed.

However, Chief Ministers of Kerala, West Bengal, Tamil Nadu, Assam, and Puducherry will not participate due to the model code of conduct in place. The Cabinet Secretary will hold separate discussions with the Chief Secretaries of these states later. Following the West Asian crisis, public sector oil companies had increased the price of premium petrol by Rs 2.09 to Rs 2.35 per litre on March 20. Prices of regular petrol and diesel are also expected to rise after the general elections.

Meanwhile, private company Nayara Energy, which operates around 7,000 fuel stations across the country, has increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre. With local taxes added, fuel prices are likely to rise further in states like Kerala. Since about 90 percent of the fuel market is controlled by public sector oil companies, the price hike by Nayara Energy may not immediately impact the general public.

Crude oil prices rise
The price hike by Nayara Energy comes at a time when international crude oil prices have risen to 119 US dollars per barrel following the West Asian conflict. The company stated that, as a private firm without government support, the increase was necessary considering higher import costs. Fuel sold through Nayara’s outlets is supplied from the Vadinar refinery, the second-largest single-site refinery in India. Nayara Energy was formed in 2017 after the acquisition of the former Essar Oil by a consortium led by Russian company Rosneft.

Need for preparedness
The crisis arising from the West Asian conflict may continue for a long period, and India is exploring ways to reduce its impact. For the public to cope with the situation, state governments need to respond effectively and adapt to the challenges. The Prime Minister has called the meeting with this objective. Similar video conferences were held during the COVID-19 period as well.