Fuel prices in India see a hike as petrol prices increase by Rs 2.61 per litre and diesel by Rs 2.71. This marks the fourth fuel price hike in the last two weeks, as state-run oil companies continue revisions to recover losses incurred after keeping rates unchanged despite global crude oil prices crossing $100 per barrel. The reason for the increase is mainly attributed to the ongoing West Asian conflict between the US and Iran which has led to the closure of the Strait of Hormuz.
Following the latest increase, petrol in New Delhi is now priced at Rs 102.12 per litre, while diesel rates have risen to Rs 95.20 per litre. Speaking on the impact of the ongoing West Asia conflict, Sushma Rawat, ONGC Director (Exploration), said crude oil prices have remained highly volatile due to uncertainty surrounding the situation.
“Whenever there is an announcement of a peace accord, crude prices begin to fall. But when it becomes clear that there is no immediate resolution, prices rise again,” Rawat told ANI.
She further stated that India has so far managed to protect consumers from the complete impact of rising global energy prices despite continued volatility in international crude markets.
"The government has given relief to the people for 76 days, during which the price has not increased. The price has increased, because the oil marketing companies (OMCs) were taking a hit of almost Rs 1,000 crore a day. How long do you sustain that?" she asked.
Petrol and diesel prices were last revised on May 23, when OMCs increased petrol rates by Rs 0.87 per litre and diesel prices by Rs 0.91 per litre.
Meanwhile, global oil prices witnessed a sharp decline of more than five per cent amid hopes of a possible peace agreement to end the ongoing conflict between the United States and Iran, despite US President Donald Trump downplaying the possibility of an immediate breakthrough.
At around 2300 GMT on Sunday, North Sea Brent Crude fell 5.1 per cent to $98.22 per barrel, while West Texas Intermediate (WTI) crude dropped 5.2 per cent to $91.57 per barrel before recovering marginally later in trading.
Delhi
Petrol: Rs 102.12 (+2.61)
Diesel: Rs 95.20 (+2.71)
Kolkata
Petrol: Rs 113.51 (+2.87)
Diesel: Rs 99.82 (+2.80)
Mumbai
Petrol: Rs 111.21 (+2.72)
Diesel: Rs 97.83 (+2.81)
Chennai
Petrol: Rs 107.77 (+2.46)
Diesel: Rs 99.55 (+2.57)
The latest increase in fuel prices is expected to add to the financial burden on commuters, transport operators and businesses across sectors. On May 16, India, after months of stability in fuel prices, saw a hike of Rs 3 in fuel prices – both petrol and diesel. It sprung surprise for many as the fuel rates had remained more or less stable since April 2022. The only exception was in March 2024, when the prices were reduced by Rs 2 per litre prior to the 2024 Lok Sabha elections.
Analysts have cautioned that continued hikes in petrol and diesel rates could raise transportation and logistics expenses, eventually leading to an increase in the prices of essential commodities and food products.
Government officials had previously stated that the revisions were necessary to manage rising import expenses and maintain stability in fuel supplies amid persistent geopolitical tensions and volatility in global energy markets.
Source: India Today