Winning Bizness Desk

Mumbai.Government-owned oil companies have increased the prices of premium petrol variants such as Speed, Power and XP95 by Rs 2.09 to Rs 2.35 per litre from March 20, pushing rates sharply higher across major cities. In Bhopal, premium petrol has climbed to around Rs 117 per litre, while in New Delhi prices now range between Rs 107 and Rs 112.30 per litre. Notably, there has been no change in the price of regular petrol, keeping the hike limited to high-octane fuel categories.

Premium fuel variants see fresh price hike

The price revision applies to premium petrol sold under different brand names by public sector oil firms. Bharat Petroleum sells it as Speed, Hindustan Petroleum markets it as Power, while Indian Oil offers it as XP95. These fuels are typically priced Rs 10 to Rs 12 higher than regular petrol due to their enhanced quality and performance benefits. The hike comes at a time when global energy markets remain volatile, adding to domestic pricing pressures.

Octane difference drives performance and pricing

The key distinction between regular and premium petrol lies in their octane number, which determines fuel stability and engine performance.

• Regular petrol usually comes with an octane rating of 91, suitable for most vehicles
• Premium petrol ranges between 95 and 100 octane, offering smoother engine performance
• Higher octane reduces engine knocking and improves longevity
• Special additives and refining processes make premium fuel costlier

These factors make premium petrol a preferred choice for high-performance and luxury vehicles, though it is not essential for standard engines.

Global crude surge pushes up domestic costs

The increase in premium petrol prices is largely attributed to rising international crude oil prices and higher costs of additives used in premium fuels.

• Indian basket crude has surged from around $70 to $156 per barrel
• Additive costs for premium fuel have also increased significantly
• Oil companies were under pressure due to rising input costs
• Price hike seen as a move to offset mounting losses

Market experts warn that if crude prices remain elevated for a prolonged period, prices of regular petrol and diesel may also be revised upwards.

Premium petrol accounts for limited overall sales

Despite the hike, premium petrol constitutes only a small fraction of total fuel consumption in the country. According to Petroleum Ministry Joint Secretary Sujata Sharma, premium variants account for just 3 to 4 percent of total petrol sales. This limits the broader impact of the price increase on the general public, though it affects specific vehicle segments.

Industrial fuel prices jump sharply by 25 percent

Alongside petrol, Indian Oil has raised the price of industrial fuels by about Rs 22 per litre, marking a 25 percent increase. Rates have gone up from Rs 87.67 to Rs 109.59 per litre.

• Industrial fuels include furnace oil, light diesel oil and high-speed diesel
• Widely used in factories, boilers and power generation units
• Essential for running machinery, metal processing and industrial heating
• Cost escalation may impact manufacturing and production expenses

When premium petrol is necessary for vehicles

• Normal vehicles between 100cc and 1500cc do not require premium petrol
• Luxury or sports cars with 95 octane requirement must use premium fuel
• Older vehicles may benefit occasionally for engine cleaning

The latest price adjustments underline the growing linkage between global crude trends and domestic fuel pricing, with premium segments acting as the first point of impact.