Petrol and diesel prices were raised by Rs 2.61-2.71 per litre on Monday, marking the fourth increase in less than two weeks as state-owned fuel retailers continued to pass on rising international oil prices to consumers.
With the latest revision, cumulative increases in petrol and diesel prices have nearly touched Rs 7.5 per litre since fuel price revisions resumed on May 15 after a prolonged freeze, stoking concerns over inflationary pressures and higher transportation costs across the economy.
The latest revision pushed petrol prices higher by Rs 2.61 per litre and diesel by Rs 2.71, according to industry sources. Petrol prices were raised to Rs 102.12 a litre in Delhi from Rs 99.51 previously, while diesel rates were increased to Rs 95.20 per litre from Rs 92.49.
The back-to-back increases follow a prolonged freeze in retail fuel prices and come amid elevated crude oil prices in the global market, tightening refining margins, and a weaker rupee, which have sharply raised the cost of imports.
Petrol and diesel prices were increased on May 15 by Rs 3 per litre each, and on May 19 by 90 paise a litre. This was followed by an 87-paise per litre increase in petrol and a 91-paise hike in diesel rates on May 23.
After Monday’s increase, petrol at PSU pumps in Mumbai now costs Rs 111.21 per litre and diesel Rs 97.83, while prices in Kolkata rose to Rs 113.51 and Rs 99.82, respectively. In Chennai, petrol is priced at Rs 107.77 and diesel at Rs 99.55.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) together control 90 per cent of India’s fuel market.
The back-to-back increases come after global crude oil prices surged more than 50 per cent since late February following US-Israeli strikes on Iran and disruptions to shipments through the Strait of Hormuz, a critical global oil transit route.
Fuel retailers had in the first two-and-half-months of the conflict kept pump prices low despite rising input costs, a move the government said was aimed at shielding consumers from inflation. Opposition parties, however, accused the government of delaying price revisions until after key state elections.
The May 15 increase came after the ruling Bharatiya Janata Party (BJP) expanded its electoral footprint by winning three of five state and UT elections, including West Bengal.
Every time state-owned firms raised prices, private fuel retailers such as Nayara Energy swiftly matched them, raising petrol and diesel rates by a similar quantum.
These came on top of hikes effected earlier by private retailers ahead of the first state-run fuel price revision on May 15. Nayara Energy had 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 a litre and diesel by as much as Rs 25 per litre from April 1.
Jio-BP, the fuel retailing joint venture of Reliance Industries Ltd and BP Plc, has, however, moved rates at its pumps in tandem with PSUs. Petrol and diesel prices are now at their highest levels since May 2022. Rates had remained frozen since April 2022 except for a Rs 2-per-litre cut in March 2024 ahead of national elections.
