The escalating conflict in West Asia has sent shockwaves through the Indian energy market. Following a hike in premium petrol prices, state-owned Oil Marketing Companies (OMCs) like IOCL and BPCL have now implemented a massive increase in the price of industrial diesel. The price of diesel used for commercial and industrial purposes has been hiked by ₹28.22 per litre, marking a jump of over 25%.

The new rate for industrial-grade High-Speed Diesel (HSD) now stands at ₹137.81 per litre. Companies have cited the surge in global crude oil prices, which have reached $108.40 per barrel due to supply disruptions in the Middle East, as the primary reason for this hike. Notably, the prices of normal petrol and diesel for retail consumers remain unchanged to protect the general public from immediate inflation.

This is the second significant hike for the industrial sector within two weeks; on March 20, the price was increased from ₹87.67 to ₹109.59 in Delhi. Additionally, furnace oil prices have also seen a rise of ₹23.77 per litre. Indian Oil’s luxury petrol, XP100, now costs ₹160 per litre, up from ₹149. While the retail rates are stable for now, economists warn that the steep rise in industrial fuel costs will inevitably push up logistics and manufacturing expenses, potentially leading to a hike in the prices of essential commodities.