Petrol and diesel prices were increased by Rs 2.61 and Rs 2.71 per litre, respectively, on Monday, marking the fourth hike in under two weeks as state-owned fuel retailers continued to align pump prices with rising global crude oil costs due to West Asia conflict.
With the latest revision, cumulative increases in fuel prices since revisions resumed on May 15 have nearly reached Rs 7.5 per litre, raising concerns over inflation and higher transportation costs across sectors.
Following Monday’s hike, petrol in Delhi rose to Rs 102.12 per litre from Rs 99.51, while diesel climbed to Rs 95.20 from Rs 92.49, according to industry sources.
Fuel prices had remained unchanged for an extended period before revisions resumed earlier this month. Petrol and diesel prices were first raised by Rs 3 per litre each on May 15, followed by a 90 paise increase on May 19. Another revision on May 23 saw petrol prices go up by 87 paise per litre and diesel by 91 paise.
In Mumbai, petrol now costs Rs 111.21 per litre and diesel Rs 97.83. Kolkata recorded prices of Rs 113.51 for petrol and Rs 99.82 for diesel. In Chennai, petrol is priced at Rs 107.77 and diesel at Rs 99.55. Fuel rates vary across states due to differences in local taxes.
The latest hikes come amid elevated global crude oil prices, tighter refining margins and a weaker rupee, all of which have increased import costs.
State-run fuel retailers, Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, account for nearly 90 per cent of India’s fuel retail market.
Global crude prices have surged more than 50 per cent since late February following US-Israeli strikes on Iran and disruptions to shipments through the Strait of Hormuz, a key global oil transit route.
Fuel retailers had absorbed rising input costs for nearly two-and-a-half months, with the government saying the move was aimed at shielding consumers from inflation.
Opposition parties, however, alleged that price revisions were delayed until after key state elections.
The May 15 revision followed the ruling Bharatiya Janata Party’s (BJP) gains in three of five state and Union Territory elections, including West Bengal.
Private retailers have also mirrored the hikes. Nayara Energy matched PSU price revisions and had earlier increased petrol and diesel prices by Rs 5 and Rs 3 per litre, respectively, in March. Shell plc raised petrol prices by Rs 7.41 per litre and diesel by as much as Rs 25 per litre from April 1.
Meanwhile, Jio-BP, the fuel retail venture between Reliance Industries Limited and BP plc, aligned its pump prices with PSU retailers.
Petrol and diesel prices are now at their highest levels since May 2022. Rates had remained frozen since April 2022, barring a Rs 2 per litre cut in March 2024 ahead of national elections.