Due to the rise in international crude oil prices, India’s state-owned oil marketing companies (OMCs)—such as IOCL and BPCL—increased industrial diesel prices on Wednesday, April 1. According to media reports, the price of industrial diesel, or HSD (high-speed diesel), has been increased by ₹28.22 per litre. As a result, its price has increased from ₹109.59 to ₹137.81 per litre. This represents a straight up 25 percent increase in prices. Earlier, on March 20, industrial diesel prices had seen an increase of ₹22; At that time, the price in the national capital had increased from ₹87.67 to ₹109.59. Oil companies have also increased the price of FO (furnace oil) by ₹23.77 per litre.
Who will be affected?
Industrial diesel, or HSD, is sold in bulk to commercial entities. Its buyers include large factories and manufacturing units, which use diesel to run their generators. Apart from this, it is also extensively used in major construction agencies and infrastructure projects. Private bus operators and mass transporters also buy diesel in bulk from these companies.
Impact on general public today
For common consumers of petrol and diesel, pump prices have been kept stable. This means there is no change in the prices of petrol and diesel sold at retail fuel pumps. However, private retailers like Naira Energy and Shell have increased their prices by ₹3 to ₹25 to compensate for the losses incurred by their companies.
Where is furnace oil used?
It is a type of fuel oil, which is slightly thicker than diesel in consistency. It is used to operate heavy machinery. Since it is cheaper than diesel, it is used extensively in various industries. This price increase of ₹23.77 per liter will prove to be a cost increase for the steel and cement industries. It is used to fire furnaces in factories, to produce electricity in power plants, to create steam in factory boilers, and in the engines of large ships.
