Petrol, diesel prices hiked again; fuel rates rise by nearly Rs 5 within 10 days

Petrol and diesel prices were increased by up to 91 paise per litre on Saturday, marking the third hike in less than 10 days as state-owned oil companies continued passing on higher global energy costs to consumers.

Petrol prices in Delhi were increased by 87 paise from Rs 98.64 to Rs 99.51 per litre, while diesel rates went up by 91 paise from Rs 91.58 to Rs 92.49 per litre.

The latest increase follows hikes of Rs 3 per litre on May 15 and 90 paise per litre on May 19. In total, petrol and diesel prices have risen by nearly Rs 5 per litre since May 15.

State-owned oil marketing companies resumed revising rates on May 15 after a prolonged freeze, citing elevated international crude oil prices linked to the West Asia conflict.

Industry sources said the latest revision increased petrol prices by 87 paise per litre and diesel by up to 91 paise per litre across the country.

The back-to-back increases come amid higher global crude oil prices, tighter refining margins and a weaker rupee, all of which have increased import costs.

In Delhi, petrol now costs Rs 99.51 per litre and diesel Rs 92.49 per litre.

With the latest revision, fuel prices have climbed close to Rs 5 per litre since state-run oil companies ended the pause in revisions on May 15, raising concerns over inflation and transportation costs.

Petrol and diesel prices had earlier been increased by Rs 3 per litre each on May 15 and by 90 paise per litre on May 19.

Private fuel retailers also matched the increases announced by state-owned companies.

Nayara Energy had already increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre in March. Shell raised petrol prices by Rs 7.41 per litre and diesel prices 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, moved prices in line with public sector oil companies.

Following Saturday’s increase, petrol at PSU pumps in Mumbai costs Rs 108.49 per litre and diesel Rs 95.02 per litre. In Kolkata, petrol is priced at Rs 110.64 per litre and diesel at Rs 97.02 per litre. In Chennai, petrol costs Rs 105.31 per litre and diesel Rs 96.98 per litre.

Fuel prices differ across states because of local taxes.

Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) together account for around 90 per cent of India’s fuel market.

The recent increases come after global crude oil prices rose more than 50 per cent since late February following US-Israeli strikes on Iran and disruptions in shipments through the Strait of Hormuz, a key global oil transit route.

Fuel retailers had earlier maintained lower pump prices despite rising input costs. The government had said this was aimed at shielding consumers from inflation.

Opposition parties, however, accused the government of delaying fuel price revisions until after key state elections.

The May 15 hike came after the Bharatiya Janata Party (BJP) won three of five state and Union Territory elections, including West Bengal.

Despite the recent increases, oil marketing companies continue to face losses.

Petroleum Ministry Joint Secretary Sujata Sharma said earlier this week that the May 15 increase reduced losses by around one-fourth, but state-run firms were still losing around Rs 750 crore per day.

According to Crisil, oil marketing companies were still losing about Rs 10 per litre on petrol and Rs 13 per litre on diesel even after the earlier increase.

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 reduction announced in March 2024 ahead of the national elections.

The latest increases come as the government attempts to contain India’s oil import bill and reduce fuel consumption.

Prime Minister Narendra Modi last week urged citizens and government departments to conserve fuel, promote remote working and avoid non-essential travel amid concerns over rising energy prices, foreign exchange reserves and the current account deficit.

Several state governments have also instructed departments to reduce travel and office attendance.

Compressed natural gas (CNG) prices have increased by Rs 3 per kg in two instalments during the same period.

Industry officials said the latest revisions appeared calibrated to partly reduce pressure on oil companies without causing a sharp inflation shock, though they acknowledged the hikes would add to price pressures.

India’s retail inflation rose to 3.48 per cent in April from 3.40 per cent in March, while wholesale inflation climbed to a 42-month high of 8.3 per cent, largely due to higher fuel and energy costs.

(With inputs from agencies)