Petrol and diesel prices in Punjab have witnessed a sharp increase of around Rs 3 per litre, pushing petrol rates beyond Rs 100 per litre in several cities of the state and triggering concerns among transporters, farmers and consumers over a possible rise in the prices of essential commodities.
Following the hike, diesel prices ahead of the paddy sowing season have increased from Rs 87.83 to Rs 90.78 per litre in Punjab, while fuel rates continue to vary across different cities. In neighbouring Chandigarh, petrol prices rose from Rs 94.30 to Rs 97.44 per litre, while diesel climbed from Rs 82.45 to Rs 85.56 per litre.
The sudden increase led to long queues at several fuel stations across Punjab. Reports from Amritsar said a petrol pump in the Islamabad area ran out of fuel due to heavy rush after the revised rates came into effect.
Representatives of petrol pump associations indicated that fuel prices could rise further in the coming days. Transport operators also warned of an imminent increase in freight charges, saying the hike would eventually impact vegetable prices and other essential goods.
Industry representatives attributed the increase mainly to rising crude oil prices in the international market and the growing cost of fuel additives.
Experts said the diesel price hike could directly impact household budgets and agricultural expenses. Higher transportation costs are expected to make vegetables, fruits and ration supplies costlier, while farmers may face increased expenditure on tractors, irrigation pumps and other diesel-operated machinery. Public transport fares, including buses, autos and school transport services, could also see an upward revision.
According to estimates based on data from the Petroleum Planning and Analysis Cell, Punjab consumes nearly 189 crore litres of diesel during the four-month paddy season. With the latest increase of Rs 3.11 per litre, farmers in the state are expected to bear an additional burden of nearly Rs 588 crore during the season.
Agriculture experts said farmers use nearly 90 litres of diesel per acre for land preparation and irrigation, resulting in an additional burden of about Rs 280 per acre after the price revision. Punjab’s nearly 5.5 lakh tractors, most of which run on diesel, are also expected to add to the financial pressure on the rural economy, with the annual impact estimated at around Rs 1,000 crore.
During normal agricultural operations, Punjab’s daily diesel consumption ranges between 95 lakh litres and one crore litres, while consumption rises sharply during paddy sowing and wheat harvesting seasons. Estimates suggest that farmers may now have to bear an additional expenditure of nearly Rs 90 crore every month and around Rs 3 crore per day because of the latest hike.
Ashok Sachdeva, president of the Ludhiana Petrol Association, said the increase in retail fuel prices was still comparatively lower than the rise witnessed in global crude oil markets. He added that consumers were already expecting a hike and advised people to use vehicles only when necessary, warning that fuel prices could increase further in the coming days.
Prime Minister Narendra Modi had recently, during an event in Telangana, urged citizens to use petroleum products carefully in view of the geopolitical situation in West Asia. He said petrol, diesel and cooking gas should be used judiciously to reduce dependence on imported petroleum products, save foreign exchange and minimise the adverse impact of global conflicts on the Indian economy.