Uttar Pradesh government minister Nitin Agarwal has issued his first response to the recent increase in prices of premium petrol and industrial diesel, attributing the surge to the ongoing conflict involving Iran, Israel and the United States.
He said the situation has arisen due to a mismatch between demand and supply.
Agarwal stated that the war in the Gulf region has created challenges for countries worldwide, given their dependence on crude oil and gas supplies from the region.
He noted that disruptions during wartime have widened the gap between demand and supply, leading to higher fuel prices.
He also pointed out that prices have not remained elevated throughout, adding that they had declined over the past 10-11 years.
The minister said the current spike is a result of tight supply conditions and elevated demand.
He added that fuel prices are expected to stabilise once the situation in the Gulf region returns to normal.
Amid rising global crude oil prices linked to escalating tensions in West Asia, oil marketing companies on Friday increased the price of premium petrol by Rs 2.09 per litre, effective from March 20.
State-owned oil marketing companies, including Hindustan Petroleum Corporation Limited and Indian Oil Corporation Limited, have raised prices of their premium petrol variants by around Rs 2.09 to Rs 2.35 per litre.
Following the revision, the price of branded fuels such as Power Petrol and XP95 has increased from around Rs 111.68 per litre to around Rs 113.77 per litre.
