NEW DELHI, May 23 (Reuters): Indian state-owned fuel retailers raised petrol and diesel prices for the third time this month, dealers said on Saturday, as the companies look to recoup losses caused by elevated crude oil prices amid the Iran war.
Petrol in New Delhi will cost 0.87 rupees (just under 1 US cent) more at 99.51 rupees a litre, while diesel prices will be raised 0.91 rupees to 92.49 rupees per litre, dealers said.
India, the world's third-largest importer and consumer of oil, was one of the last major economies to raise retail fuel prices after the US-Israeli war on Iran triggered a surge in prices globally.
The price of fuel has become roughly 5 rupees more expensive over the three price increases. The fuel price rise announced on May 15 was India's first in four years.
The companies are raising pump prices in a staggered manner, similar to the way they did in April 2022, when they increased retail prices after elections in some key states, including northern Uttar Pradesh.
Opposition parties have said the government headed by Prime Minister Narendra Modi had postponed the current price increases to try to win votes in recent state elections.
Still, sources at refiners have said more price increases are needed to recoup the losses.
Bharat Petroleum continues to incur a revenue loss of 25 to 30 rupees per litre on diesel and 10 to 14 rupees per litre on petrol despite the higher prices, the refiner's chairman said earlier this week.
Meanwhile, India's Trade Minister Piyush Goyal will visit Canada between May 25 and May 27, heading a delegation of about 150 Indian industry leaders as part of efforts to strengthen trade and investment ties between the two countries.
Goyal told a news briefing on Saturday that the delegation would hold meetings with Canadian ministers, business leaders and industry groups in Ottawa and Toronto.
India and Canada have been seeking to revive economic engagement after diplomatic tensions slowed bilateral trade talks.
India expects to sign a free trade agreement with Canada covering sectors such as energy and critical minerals, while creating opportunities for Indian textile and leather companies, Goyal said.
During Prime Minister Mark Carney's visit to New Delhi in March, both countries agreed to finalise the terms of reference for negotiating a comprehensive economic partnership agreement.