State-run fuel retailers on Monday increased petrol and diesel prices by Rs 2.61 to 2.71 per litre, marking the fourth fuel price hike in under two weeks as companies continued to transfer the burden of rising global oil prices to consumers.
With the latest revision, cumulative increases in petrol and diesel prices have crossed Rs 7.5 per litre since fuel price revisions resumed on May 15 after a prolonged freeze, fuelling concerns over inflationary pressures and higher transportation costs across the economy, reported PTI.
Latest fuel price hike
The latest revision pushed petrol prices higher by Rs 2.61 per litre and diesel by Rs 2.71, according to industry sources.
Following the increase, petrol prices in Delhi rose to Rs 102.12 per litre from Rs 99.51, while diesel rates increased to Rs 95.20 per litre from Rs 92.49.
In Mumbai, petrol now costs Rs 111.21 per litre and diesel Rs 97.83 at PSU-operated pumps. In Kolkata, petrol prices climbed to Rs 113.51 and diesel to Rs 99.82. In Chennai, petrol is priced at Rs 107.77, while diesel costs Rs 99.55 per litre, the news agency reported.
Fuel prices vary across states due to differences in local taxes.
Series of increases since May 15
Petrol and diesel prices were first increased on May 15 by Rs 3 per litre each, followed by a 90-paise hike on May 19.
This was followed by an 87-paise per litre increase in petrol prices and a 91-paise hike in diesel rates on May 23.
Monday’s increase marks the fourth revision in less than two weeks after fuel prices had remained frozen for more than two years.
Why fuel prices are rising
The back-to-back increases come amid elevated crude oil prices in global markets, tighter refining margins, and a weaker rupee, all of which have sharply increased import costs.
Global crude oil prices have surged more than 50 per cent since late February, following the US-Israel conflict involving Iran and disruptions to shipments through the Strait of Hormuz, a key global oil transit route.
Fuel retailers had absorbed higher input costs during the initial months of the conflict, with the government stating that the move was aimed at shielding consumers from inflationary pressures.
However, opposition parties accused the government of delaying fuel price revisions until after key state elections.
Political backdrop and market response
The May 15 hike came shortly after the ruling Bharatiya Janata Party (BJP) expanded its electoral footprint by winning three of the five state and Union Territory elections, including West Bengal.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) together account for nearly 90 per cent of India’s fuel retail market.
Private fuel retailers have also revised prices in line with PSU companies. Nayara Energy had earlier raised petrol and diesel prices by Rs 5 and Rs 3 per litre, respectively, in March, while Shell increased petrol prices by Rs 7.41 per litre and diesel by as much as Rs 25 per litre from April 1, reported PTI.
Jio-BP, the fuel retailing joint venture between Reliance Industries Ltd and BP Plc, has aligned its pricing with state-run retailers.
Highest fuel prices since 2022
Petrol and diesel prices are now at their highest levels since May 2022.
Fuel rates had remained unchanged since April 2022, except for a Rs 2-per-litre cut announced in March 2024 ahead of the Lok Sabha elections.
(With PTI inputs)