Diesel price: Bulk diesel price hike rolled back for Gujarat fishermen, will be treated as special exception

Fishermen in Gujarat will continue to receive diesel at subsidised rates after the Centre decided to roll back a recent steep increase in bulk fuel prices, following a request from the state government. The relief comes after oil companies raised the price of bulk diesel by Rs 22.43 per litre for industrial users earlier in the week, in response to rising global crude prices amid the ongoing supply disruption due to the Middle East war. The hike had also been extended to diesel supplied to fishing boats, triggering concern among the state’s fishing community. Fisheries minister Jitu Vaghani said that the Gujarat government intervened, urging the Centre to treat fishermen as retail consumers and provide a “special exception” to shield them from the increase.After the price hikes were announced, many manufactureres and transporters across the state were left struggling amid already existing pressures from inflaction and energy market volatility.“Under the guidance of Prime Minister Narendra Modi, the Centre has accepted this reasonable representation of the fishermen of Gujarat. The Centre has instructed Bharat Petroleum to withdraw the increase of Rs 22.43 in the price of diesel used in fishermen’s boats,” an official release said.It added that “a representation was made to Vaghani, MLAs, local leaders and various fisheries organisations. Considering the seriousness of the matter, Vaghani, under the guidance of the chief minister, made a representation to the Centre to intervene in the matter.” “So, the fishermen of the state will now receive diesel at the previously decided concessional rate,” it added.The state had earlier entered into an agreement with Bharat Petroleum to supply diesel to fishermen at discounted prices. However, the recent revision had pushed up costs until the rollback was approved.The broader price revision comes at a time when global oil markets have been volatile. Bulk diesel prices in Delhi, for instance, were raised from Rs 87.67 per litre to Rs 109.59, even as retail fuel prices remained unchanged. Petrol in the national capital continues to be priced at Rs 94.77 per litre, while regular diesel remains at Rs 87.67.Officials have maintained that there has been no increase in fuel prices for the general public. “Some increase is reported in the premium category which hardly makes up for 2%-4% of the entire petrol (sold in the country),” said Sujata Sharma, joint secretary in the ministry of petroleum and natural gas. “There is no increase in price for the common man.”She added that fuel prices are determined by oil marketing companies as petrol and diesel have been deregulated, and the government does not directly set rates.Retail prices have been frozen since April 2022, with companies absorbing fluctuations in global crude prices. The government has indicated it will continue this approach unless there is a significant and sustained spike in international oil rates.India relies on imports for 88% of its crude oil needs, with a large share transported through the Strait of Hormuz. Ongoing tensions in the region have disrupted supplies and pushed global crude prices higher, touching $119 per barrel before easing to around $108.While bulk fuel costs have risen in line with global trends, the exemption for Gujarat’s fishermen ensures they will not be impacted by the latest hike.