Petrol, Diesel Prices Raised By Over Rs 2; Delhi Petrol Crosses Rs 100 After Fourth Hike In 11 Days

Petrol and diesel prices have been increased for the fourth time in just 11 days as the ongoing Iran war continues to disrupt global oil markets. With the latest revision, petrol prices in Delhi have crossed the Rs 100-per-litre mark, adding to inflation concerns and increasing pressure on household budgets across the country.

Petrol And Diesel Prices Rise Across Major Cities

On Monday, petrol prices were raised by Rs 2.61 per litre, while diesel prices saw an increase of Rs 2.71 per litre. Following the hike, petrol in Delhi now costs Rs 102.12 per litre, while diesel is priced at Rs 95.20 per litre.

Revised Petrol Prices

• Delhi: Rs 102.12 per litre after a hike of Rs 2.61
• Kolkata: Rs 113.51 per litre after a hike of Rs 2.87
• Mumbai: Rs 111.21 per litre after a hike of Rs 2.72
• Chennai: Rs 107.77 per litre after a hike of Rs 2.46

Revised Diesel Prices

• Delhi: Rs 95.20 per litre after a hike of Rs 2.71
• Kolkata: Rs 99.82 per litre after a hike of Rs 2.80
• Mumbai: Rs 97.83 per litre after a hike of Rs 2.81
• Chennai: Rs 99.55 per litre after a hike of Rs 2.57

The increase in diesel prices is expected to push transportation and logistics costs even higher, which could eventually affect the prices of essential commodities. Items such as milk and bread have already become costlier following earlier fuel price hikes.

Previous Fuel And CNG Hikes Added To Inflation Pressure

The latest increase comes just two days after fuel prices were revised on May 23, when petrol became costlier by 87 paise per litre and diesel by 91 paise per litre. Alongside fuel, CNG prices in Delhi were also increased by Re 1 per kg, taking the rate to Rs 81.09 per kg.

The repeated revisions have intensified concerns over rising inflation and the growing burden on consumers already dealing with higher daily expenses.

Iran War And Strait Of Hormuz Disruption Behind Price Spike

The ongoing conflict involving Iran has significantly disrupted global crude oil supply chains. The Strait of Hormuz, one of the world's most important oil transit routes, has witnessed major disruptions, resulting in a sharp rise in international crude oil prices.

For several weeks, oil marketing companies in India continued selling petrol and diesel at older retail prices despite purchasing crude oil at much higher costs. However, after nearly two months of conflict since the war began on February 28, losses for oil companies reportedly became unsustainable.

According to estimates, Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) were together absorbing losses of more than Rs 1,000 crore every day, forcing the government to approve fuel price revisions.

Experts Say More Price Revisions May Follow

Speaking on the impact of the latest hike, Sourav Mitra, Partner - Oil and Gas, Grant Thornton Bharat, said, "The recent back-to-back price hikes will offer partial relief to OMCs, but not a full cushion. Even if the Middle East situation stabilises, it will take time for risks around the Strait of Hormuz to fully ease, keeping crude prices elevated-likely above $90 per barrel. Combined with a weakening rupee, this continues to pressure OMC margins, and they could still face under-recoveries."

He added, "Going forward, some calibrated price revisions may be required. The government will need to balance OMC financial health against the impact on consumers."

Fuel prices in India had largely remained unchanged since April 2022. In fact, rates were cut by Rs 2 per litre ahead of the 2024 Lok Sabha elections. The current increase therefore marks the first major fuel price revision in nearly four years.