Indian state-run refiners are mulling a modest increase in petrol and diesel prices within days as the government weighs the economic impact of the U.S.-Iran war against consumer needs, Bloomberg News reported, citing people familiar with the matter.
Fuel retailers are likely to raise prices by about 5 rupees per liter to partly offset estimated daily losses of 10 billion rupees on fuel sales, the report said. However, the increase would still remain below 15 to 20 rupees per liter, a hike which is needed to fully cover losses, the sources told Bloomberg.
India's energy imports have come under pressure following disruption in flows through the Strait of Hormuz, pushing up crude prices and creating shortages of cooking gas, the report said.
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