Petrol crosses Rs 102 in Delhi as fuel prices rise for fourth time in two weeks

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 passing 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, raising concerns over inflation and higher transportation costs.

According to industry sources, petrol prices were increased by Rs 2.61 per litre, while diesel rates were raised by Rs 2.71 per litre.

The latest hike comes amid elevated global crude oil prices and a weakening rupee, both of which have increased import costs for oil marketing companies.

In Delhi, petrol prices rose to Rs 102.12 per litre from Rs 99.51 earlier, while diesel prices increased to Rs 95.20 per litre from Rs 92.49.

The latest revision follows a prolonged freeze in retail fuel prices and comes amid high crude oil prices in the global market, tighter refining margins and a weaker rupee, which have sharply pushed up import costs.

Fuel prices were first increased on May 15, when petrol and diesel rates were raised by Rs 3 per litre each. This was followed by a 90-paise per litre hike on May 19. On May 23, petrol prices were increased by 87 paise per litre and diesel by 91 paise per litre.

After Monday’s increase, petrol at PSU pumps in Mumbai costs Rs 111.21 per litre, while diesel is priced at Rs 97.83. In Kolkata, petrol prices rose to Rs 113.51 per litre and diesel to Rs 99.82. In Chennai, petrol is now priced at Rs 107.77 per litre and diesel at Rs 99.55.

Fuel prices vary across states because of local taxes.

State-run Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) together control around 90 per cent of India’s fuel retail market.

The latest round of hikes comes 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 major global oil transit route.

Fuel retailers had kept pump prices unchanged during the first two-and-half months of the conflict despite rising input costs. The government had said the move was aimed at protecting consumers from inflation. Opposition parties, however, accused the government of delaying price revisions until after key state elections.

The May 15 fuel price hike came after the ruling Bharatiya Janata Party (BJP) expanded its electoral footprint by winning three of five state and Union Territory elections, including West Bengal.

Private fuel retailers also matched the hikes introduced by state-owned companies. Nayara Energy increased petrol and diesel prices by a similar amount every time PSU retailers revised rates.

These hikes came on top of earlier increases by private retailers ahead of the first state-run revision on May 15. Nayara Energy had raised petrol prices by Rs 5 per litre and diesel by Rs 3 per litre 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.

Jio-BP, the fuel retailing joint venture between Reliance Industries Ltd and BP Plc, has revised rates at its pumps in line with PSU retailers.

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 national elections.