In a major blow to consumers already grappling with inflation, petrol and diesel prices witnessed another sharp increase on Monday, marking the fourth hike in less than two weeks. State-owned oil marketing companies continued passing on the burden of rising international crude oil prices and a weakening rupee to domestic consumers, pushing fuel prices to their highest levels since May 2022.
Petrol prices were raised by Rs 2.61 to Rs 2.87 per litre across major metro cities, while diesel prices increased by Rs 2.57 to Rs 2.81 per litre. The latest revision comes just two days after fuel prices were increased by 87-91 paise per litre on Saturday.
With the latest hike, petrol and diesel prices have now risen by nearly Rs 7.5 per litre since the resumption of daily price revisions on May 15 after a prolonged freeze. The steep and frequent increases have intensified concerns over inflation, transportation costs, and the broader economic impact on households and businesses.
Following Monday’s revision, petrol in Delhi crossed the Rs 102 mark and is now priced at Rs 102.12 per litre, up from Rs 99.51. Diesel prices in the national capital climbed to Rs 95.20 per litre from Rs 92.49.
The revised petrol prices in metro cities are:
High-speed diesel prices now stand at:
The current round of hikes began on May 15, when petrol and diesel prices were increased by Rs 3 per litre each. This was followed by another increase of around 90 paise per litre on May 19 and a fresh hike over the weekend.
Adding to the burden on consumers, compressed natural gas (CNG) prices were also raised by Re 1 per kg, marking the third increase in recent days. In Delhi, CNG now costs Rs 81.09 per kg compared to Rs 80.09 earlier. The cumulative increase in CNG prices has now reached Rs 4 per kg.
Indraprastha Gas Ltd (IGL) also revised rates upward in neighbouring cities, impacting lakhs of auto-rickshaw drivers, taxi operators, and commercial vehicle owners who depend on CNG as a cheaper alternative fuel.
The fresh increases come amid elevated global crude oil prices and a depreciating rupee, both of which have sharply increased the import costs for oil marketing companies. India imports nearly 85 per cent of its crude oil requirements, making domestic fuel prices highly sensitive to international market fluctuations.
According to market analysts, geopolitical tensions in West Asia and supply concerns have kept crude oil prices elevated, while the weakening rupee has further increased the landed cost of imports.
State-owned oil retailers — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) — together account for nearly 90 per cent of the country’s fuel retail market.
Fuel retailers had maintained stable prices for several months despite rising international oil prices, with the government claiming the move was intended to shield consumers from inflationary shocks. However, opposition parties alleged that the government delayed price revisions until after key state elections.
Ratings agency Crisil had estimated that even after earlier revisions, oil marketing companies were losing nearly Rs 10 per litre on petrol and Rs 13 per litre on diesel due to high input costs.
Private fuel retailers had already increased prices significantly earlier this year. Nayara Energy had raised petrol prices by Rs 5 per litre and diesel by Rs 3 per litre in March, while Shell increased petrol rates by Rs 7.41 and diesel by up to Rs 25 per litre from April 1. Jio-BP, the joint venture between Reliance Industries and BP Plc, has largely aligned its fuel prices with PSU retailers.
The repeated fuel price hikes are expected to have a cascading impact on the economy, particularly on transportation, logistics, and food prices. Higher diesel prices directly affect freight movement and agricultural operations, raising fears of another round of inflationary pressure in the coming weeks.
With fuel prices climbing steadily and global crude markets remaining volatile, consumers may continue to face additional increases unless international oil prices ease or the government intervenes through tax reductions.
Leave Your Comment