India raises fuel prices by nearly a rupee in second hike within a week

NEW DELHI: India raised prices of petrol and diesel by nearly a rupee a litre on Tuesday, ​fuel retailers in Delhi said, as the government moves to ‌recover losses incurred from high global crude prices.

After the hike of roughly 0.9 rupees ($0.0093), petrol will cost 98.64 rupees a litre in Delhi while diesel will ​be at 91.58 rupees a litre, dealers said.

Prices vary across ​the country because of regional taxes.

The world's third-largest importer and ⁠consumer of oil is one of the last major economies ​to raise retail fuel prices after the U.S.-Israeli war on Iran triggered ​the effective closure of the Strait of Hormuz.

Global oil prices spiked to more than $120 a barrel, before pulling back slightly.

State-run Indian Oil Corp, Hindustan Petroleum and Bharat ​Petroleum, which together control more than 90% of a network of ​103,000 fuel stations, tend to set prices in tandem.

Tuesday's increase followed India's first ‌rise ⁠in four years last Friday when it raised petrol and diesel prices by 3 rupees a litre.

Analysts and opposition parties said that the government, headed by Prime Minister Narendra Modi, postponed increasing prices because of key ​state elections.

Modi's Bharatiya ​Janata Party went ⁠on to win two of the four key states, expanding its influence.

Sujata Sharma, a joint secretary in ​the federal oil ministry, on Monday said state fuel ​retailers ⁠are incurring a daily loss of 7.5 billion rupees on fuel sales.

The government is not planning any financial support for state retailers right now, ⁠she ​added.

Modi has urged people to limit their travel ​to conserve fuel and curb buying gold.