Petrol and diesel prices were increased by around 90 paise per litre on Tuesday, marking the second fuel price revision within a week after public sector oil companies ended a prolonged freeze on fuel rates that had remained largely unchanged for nearly four years.
With the latest increase, petrol in Delhi now costs Rs 98.64 per litre, up from Rs 97.77, while diesel prices rose to Rs 91.58 per litre from Rs 90.67, according to industry figures.
The latest revision follows the Rs 3 per litre hike announced on May 15, which was the first major increase in fuel prices since April 2022. The rise comes amid sharp increases in global crude oil prices due to tensions in West Asia and disruptions in international oil supply routes.
Petrol and diesel prices rise across metro cities
Fuel prices have risen across all major Indian cities following Tuesday’s revision.
In Mumbai, petrol is now retailing at Rs 107.59 per litre and diesel at Rs 94.08 per litre. Kolkata recorded the highest petrol price among the metro cities at Rs 109.70 per litre, while diesel there costs Rs 96.07.
In Chennai, petrol prices increased to Rs 104.46 per litre and diesel to Rs 96.11. Bengaluru recorded petrol prices at Rs 107.12 per litre and diesel at Rs 95.04.
Hyderabad continues to report some of the highest fuel rates in the country, with petrol priced at Rs 111.88 per litre and diesel nearing the Rs 100 mark at Rs 99.95.
Global crude oil surge impacts domestic fuel rates
Retail fuel prices had remained mostly frozen since April 2022 despite volatility in global crude markets. The only notable revision during this period came in March 2024, when petrol and diesel prices were cut by Rs 2 per litre ahead of the Lok Sabha elections.
However, crude oil prices have climbed sharply in recent months. Industry estimates indicate that global oil prices have risen by over 50 per cent since late February following geopolitical tensions involving Iran and disruptions in the Strait of Hormuz, one of the world’s most important oil shipping routes.
Officials said state-run oil companies have been under pressure due to mounting losses caused by the gap between international crude prices and domestic retail rates.
CNG and LPG prices also witness increases
The recent fuel hikes come alongside increases in compressed natural gas (CNG) and LPG prices.
CNG prices were first raised by Rs 2 per kg in several cities, including Delhi and Mumbai, on May 15. Another increase of Re 1 per kg followed on Sunday.
Domestic LPG cylinder prices were also revised upward in March, with prices increasing by Rs 60 per cylinder. Despite the hike, oil marketing companies are reportedly continuing to incur losses on subsidised LPG sales.
Officials estimate that companies are losing around Rs 674 on every 14.2-kg domestic LPG cylinder sold.
Centre pushes fuel conservation measures
Amid rising energy prices and concerns over India’s oil import bill, the Centre has urged citizens and institutions to reduce fuel consumption.
Prime Minister Narendra Modi recently called for fuel conservation, greater use of work-from-home arrangements and reduced travel wherever possible.
Several state governments have also advised departments to cut non-essential travel and minimise physical meetings to lower fuel consumption and operational expenses.
Private retailers had revised prices earlier
Private fuel retailers had already raised fuel prices before public sector companies announced revisions this month.
Nayara Energy increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre earlier this year.
Meanwhile, Shell raised petrol prices by Rs 7.41 per litre and diesel prices by Rs 25 per litre from April 1. In Bengaluru, Shell currently sells petrol at Rs 119.85 per litre and diesel at Rs 123.52 per litre.
Fuel prices in major cities on May 19 stood at Rs 98.64 for petrol and Rs 91.58 for diesel in Delhi, Rs 107.59 and Rs 94.08 respectively in Mumbai, Rs 109.70 and Rs 96.07 in Kolkata, and Rs 107.12 and Rs 95.04 in Bengaluru.