FuelPrices – Petrol and Diesel Rates Rise Again Across Major Indian Cities
FuelPrices – Petrol and diesel prices across India moved higher again on Tuesday as state-run fuel retailers continued revising rates after maintaining a long freeze on retail prices for nearly four years.
Petrol prices in the national capital increased by nearly 90 paise per litre, taking the rate in New Delhi to Rs 98.64 from Rs 97.77. Diesel prices also climbed to Rs 91.58 per litre, compared to the earlier Rs 90.67.
Second Fuel Increase Within a Week
The latest revision comes only days after oil marketing companies announced a Rs 3 per litre hike on Friday, which marked the first major increase in fuel prices in more than four years. The adjustment followed a sharp rise in international crude oil prices linked to tensions involving Iran and disruptions in global oil supply routes.
Energy companies had been under pressure due to elevated crude costs while retail prices remained unchanged for an extended period. Industry experts believe the recent revisions are intended to partly offset mounting financial losses faced by fuel retailers.
Global Crude Prices Driving Domestic Revisions
International crude oil prices have risen significantly since late February after military developments involving Iran affected shipping movement through the Strait of Hormuz, one of the world’s key oil transit corridors. The disruption has increased concerns over supply stability in global energy markets.
According to market estimates, crude oil prices have surged by more than 50 percent during this period. The increase has directly impacted countries heavily dependent on oil imports, including India.
Despite the sharp rise in global energy costs, domestic petrol and diesel rates had largely remained frozen. The government had earlier defended the decision, saying stable fuel prices were necessary to shield consumers from sudden inflationary pressure.
Opposition Questions Timing of Price Hikes
Political reactions have also intensified following the recent fuel revisions. Opposition parties accused the government of delaying price increases until after important state elections concluded.
The Bharatiya Janata Party (BJP) secured victories in three out of five states during the recent assembly elections, including West Bengal. Critics argued that fuel rate revisions resumed only after polling ended.
Analysts tracking the petroleum sector stated that the initial Rs 3 increase announced last week covered only a limited portion of the gap between international crude costs and domestic retail prices.
Oil Companies Continue Facing Heavy Losses
Officials from the Ministry of Petroleum and Natural Gas indicated that oil companies are still dealing with major financial strain despite the recent hikes. Sujata Sharma, Joint Secretary in the ministry, said the May 15 increase helped reduce company losses to some extent, though public sector fuel retailers were still reportedly losing around Rs 750 crore every day.
With Tuesday’s revision, fuel prices have reached their highest level since May 2022. Retail rates had remained largely unchanged since April 2022, except for a one-time reduction of Rs 2 per litre announced ahead of the 2024 Lok Sabha elections.
Metro Cities See Fresh Fuel Price Levels
Among India’s major metropolitan cities, Mumbai recorded petrol prices at Rs 107.59 per litre, while diesel reached Rs 94.08. In Kolkata, petrol prices rose to Rs 109.70 and diesel to Rs 96.07 per litre. Chennai also witnessed increases, with petrol touching Rs 104.49 and diesel climbing to Rs 96.11 per litre.
Fuel rates continue to differ from state to state because of varying value-added tax structures imposed by local governments.
CNG Prices Also Continue Rising
Alongside petrol and diesel, compressed natural gas prices have also increased in several cities. Earlier this month, CNG prices were raised by Rs 2 per kg in Delhi, Mumbai and other urban centres, followed by another Re 1 increase shortly after.
The government has simultaneously introduced measures aimed at controlling fuel consumption and reducing pressure on the country’s oil import bill. Prime Minister Narendra Modi recently urged citizens and institutions to adopt fuel-saving practices, including increased work-from-home arrangements and reduced travel.
Several state governments have also advised departments to limit official travel and reduce physical meetings to manage rising energy costs more efficiently.