FuelPrices – Petrol and Diesel Rates Climb Again Amid Rising Global Oil Costs

FuelPrices – Petrol and diesel prices recorded another increase across the country on Saturday, marking the third revision in fuel rates within a span of less than 10 days. The latest adjustment comes as state-owned oil companies continue to respond to higher international crude oil prices and growing domestic demand.

In the national capital, the price of petrol rose by 87 paise per litre, taking the retail rate from Rs 98.64 to Rs 99.51. Diesel prices also moved higher by 91 paise, increasing from Rs 91.58 to Rs 92.49 per litre. Similar revisions were implemented in several other cities based on local taxes and transportation costs.

Consecutive Revisions Since Mid-May

The latest increase follows earlier hikes announced on May 15 and May 19. Oil marketing companies had first raised fuel prices by Rs 3 per litre earlier this month before introducing another rise of nearly 90 paise a few days later. With the newest adjustment, petrol and diesel prices have climbed by almost Rs 5 per litre in total during May.

Public sector fuel retailers had maintained a long period of stability in retail fuel rates before beginning the recent revisions. Industry experts link the increase to rising global crude prices, tighter refining margins, and pressure on the Indian rupee, all of which have significantly increased import costs for energy companies.

Global Factors Behind the Increase

International oil markets have remained volatile due to geopolitical tensions in West Asia, leading to elevated crude prices worldwide. Since India imports a large share of its crude oil requirement, any sharp movement in global prices directly affects domestic fuel costs.

Apart from external pressures, refining companies are also dealing with higher operational expenses and increased shipping costs. Analysts say these combined factors have made it difficult for oil firms to continue absorbing losses while maintaining frozen retail rates.

The latest revisions also come at a time when fuel consumption is rising in several states because of agricultural activities linked to wheat harvesting and the beginning of paddy sowing preparations. Diesel demand, in particular, typically rises during this period due to increased use of farming equipment and transportation services.

Government Focus on Fuel Consumption

The recent price movement follows Prime Minister Narendra Modi’s appeal encouraging citizens to reduce unnecessary fuel consumption. He had advised people to prefer public transport whenever possible and adopt work-from-home practices to help lower India’s oil import burden and reduce pressure on foreign exchange reserves.

Officials believe controlled fuel usage could support economic stability at a time when international energy prices remain unpredictable.

Indian Oil Says Supplies Remain Stable

Meanwhile, Indian Oil Corporation (IOC) clarified that there is no nationwide shortage of petrol or diesel despite reports of supply interruptions at a few retail outlets. The company described the issue as temporary and limited to certain local areas where demand patterns had shifted unexpectedly.

According to IOC, a seasonal jump in diesel usage during harvesting activities has contributed to higher demand in some regions. The company also noted that many consumers had shifted toward public sector fuel stations because retail rates at some private outlets were comparatively higher.

IOC stated that institutional buyers have also increased purchases from government-run pumps, as bulk fuel supplies are currently being sold at rates linked closely to international market prices.

Limited Impact Across Retail Network

The company emphasized that only a very small number of outlets from its nationwide network of more than 42,000 fuel stations had experienced disruptions. It added that fuel stocks and supply chains remain stable across most locations.

Data released by IOC showed that petrol sales between May 1 and May 22 increased by 14 percent compared to the same period last year. Diesel sales during the period recorded an even stronger rise of nearly 18 percent, reflecting sustained growth in fuel demand across the country.