OilPrices – Fuel Rate Hikes Continue as Global Crude Costs Surge
OilPrices – Petrol and diesel prices increased again on Monday as state-owned oil marketing companies continued revising retail fuel rates in line with higher international crude oil prices. The latest revision pushed petrol prices up by Rs 2.61 per litre and diesel by Rs 2.71 per litre, marking the fourth increase in less than two weeks.
The continued rise in fuel prices has raised concerns among consumers and businesses, especially as transportation and logistics expenses are expected to increase further in the coming weeks.
Fuel Prices Rise Across Major Cities
After the latest revision, petrol prices in Delhi climbed to Rs 102.12 per litre from Rs 99.51, while diesel prices rose to Rs 95.20 from Rs 92.49 per litre. Similar increases were reported in other metropolitan cities.
In Mumbai, petrol is now being sold at Rs 111.21 per litre, while diesel costs Rs 97.83. Kolkata recorded petrol prices at Rs 113.51 and diesel at Rs 99.82. In Chennai, petrol reached Rs 107.77 per litre and diesel touched Rs 99.55.
Fuel prices differ from state to state because of varying local taxes and transportation charges.
Multiple Increases Since Mid-May
Fuel price revisions resumed on May 15 after a long period of stability in retail rates. Since then, cumulative increases in petrol and diesel prices have nearly touched Rs 7.5 per litre.
The first revision earlier this month saw both petrol and diesel prices rise by Rs 3 per litre. Another increase followed on May 19, when rates were raised by 90 paise per litre. A third revision on May 23 added 87 paise to petrol prices and 91 paise to diesel prices.
The latest adjustment has intensified concerns over inflationary pressure, especially for sectors dependent on road transport and fuel-intensive operations.
Global Crude Prices Behind the Increase
Industry officials linked the rise in domestic fuel prices to increasing global crude oil rates, weaker refining margins and the depreciation of the Indian rupee against the US dollar.
International crude prices have reportedly surged sharply since late February due to geopolitical tensions in West Asia. Supply concerns intensified after military developments involving the United States, Israel and Iran, along with disruptions in shipping activity through the Strait of Hormuz, one of the world’s most important oil transit routes.
The rise in import costs has placed additional pressure on Indian fuel retailers, many of which had reportedly absorbed higher expenses for several weeks before revising retail prices.
Public Sector Retailers Dominate Fuel Market
India’s fuel retail market is largely controlled by public sector companies, including Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited. Together, these companies account for nearly 90 percent of fuel sales across the country.
Private fuel retailers have also revised prices in response to global market conditions. Nayara Energy had earlier increased petrol and diesel prices in March, while Shell plc announced significant hikes from April 1. Jio-BP, the joint venture between Reliance Industries Limited and BP plc, also aligned its fuel rates with public sector retailers.
Political Debate Over Fuel Price Revisions
The fresh increase in fuel prices has also triggered political reactions. Opposition parties claimed that revisions in retail fuel prices were delayed until after important state and Union Territory elections.
The government had earlier maintained that holding prices steady was necessary to shield consumers from inflation and protect household budgets from sudden cost increases.
Fuel prices had remained largely unchanged since April 2022, except for a Rs 2 per litre reduction announced in March 2024 ahead of the national elections.
With the latest revisions, petrol and diesel rates have now reached their highest levels since May 2022, adding further pressure on household expenses and business operating costs.