Petrol and diesel prices were increased across the country on Tuesday for the second time in less than a week, as soaring global crude oil prices and escalating tensions in West Asia continued to impact domestic fuel rates.
State-run oil marketing companies (OMCs) raised petrol prices by up to 86 paise per litre and diesel prices by up to 83 paise per litre.
The latest revision comes just days after a Rs 3-per-litre hike announced on May 15, the first increase in more than four years.
Delhi fuel prices near Rs 100 mark
In the national capital, petrol prices climbed from Rs 97.77 to Rs 98.64 per litre, while diesel prices rose from Rs 90.67 to Rs 91.58 per litre.
Mumbai recorded one of the steepest hikes, with petrol prices increasing by 91 paise to Rs 107.59 per litre and diesel rising by 94 paise to Rs 94.08 per litre.
In Chennai, petrol touched Rs 104.49 per litre and diesel Rs 96.11 per litre, while Kolkata saw petrol prices surge to Rs 109.70 per litre and diesel to Rs 96.07 per litre.
Fuel prices in Jaipur also rose sharply, with petrol reaching Rs 108.91 per litre and diesel Rs 94.15 per litre.
Crude oil surge fuels domestic hikes
The latest increase follows a sharp rally in international crude oil prices, which have surged over 50 per cent since tensions involving Iran escalated earlier this year.
Global supply concerns intensified after disruptions around the Strait of Hormuz, one of the world’s most critical oil shipping routes, amid the ongoing US-Iran conflict and wider instability in West Asia.
Brent crude prices have remained above USD 100 per barrel in recent weeks, adding pressure on domestic fuel retailers.
CNG prices also increased
The hike in petrol and diesel rates comes alongside recent increases in compressed natural gas (CNG) prices.
Indraprastha Gas Limited (IGL) on Sunday raised CNG prices by Rs 1 per kg across its network, marking the second hike within 48 hours. Earlier this month, CNG rates had already been increased by Rs 2 per kg amid rising energy costs.
Oil companies stare at massive losses
Despite the price hikes, public sector fuel retailers are expected to face heavy financial pressure. Industry estimates suggest that Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited could together report losses nearing Rs 1.2 lakh crore in the first quarter of FY27.
Government assures adequate fuel supply
The fuel price revisions come at a time when authorities have urged fuel conservation amid the ongoing global energy crisis. However, the Indian government has maintained that there is no shortage of fuel in the country and that energy supplies remain stable despite geopolitical tensions.
(With ANI and IANS inputs)