State-run oil marketing companies have once again increased petrol and diesel prices across major Indian cities, marking the second fuel price hike in less than a week amid soaring global crude oil prices linked to escalating tensions in West Asia.
The latest revision, effective from Tuesday, has pushed fuel prices up by nearly Re 1 per litre, taking the cumulative increase since May 15 to almost ₹4 per litre.
The price revision was carried out simultaneously by Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, which together dominate India’s fuel retail market.
Revised Petrol And Diesel Prices In Major Cities
Following the latest increase, fuel prices in metro cities witnessed hikes ranging between 82 paise and 96 paise per litre depending on local taxes and levies.
Petrol Prices
- Delhi: ₹98.64 per litre (up by 87 paise)
- Kolkata: ₹109.70 per litre (up by 96 paise)
- Mumbai: ₹107.59 per litre (up by 91 paise)
- Chennai: ₹104.49 per litre (up by 82 paise)
Diesel Prices
- Delhi: ₹91.58 per litre (up by 91 paise)
- Kolkata: ₹96.07 per litre (up by 94 paise)
- Mumbai: ₹94.08 per litre (up by 94 paise)
- Chennai: ₹96.11 per litre (up by 86 paise)
The latest revision follows an earlier ₹3 per litre increase announced last week.
Oil Companies Still Facing Heavy Losses
Industry experts stated that despite the repeated hikes, state-run oil marketing companies continue to incur substantial losses on fuel sales.
According to sector estimates, the three companies are still losing between ₹9 and ₹12 per litre on petrol and diesel due to elevated international crude prices and currency depreciation.
Reports suggest that the oil companies had cited daily losses of nearly ₹1,000 crore before the first hike on May 15. Although the earlier revision reduced losses, the companies are reportedly still under financial pressure.
Experts have indicated that further fuel price increases may be possible if crude oil prices continue to remain high.
West Asia Conflict Driving Global Crude Prices Higher
The sharp rise in fuel prices has largely been attributed to the ongoing conflict in West Asia and disruptions around the Strait of Hormuz, a crucial global oil transit route.
India imports over 88 per cent of its crude oil requirements, making the country highly vulnerable to global energy price fluctuations.
Benchmark Brent Crude prices have surged significantly since the conflict intensified earlier this year.
According to reports:
- Brent crude rose from around $72.87 per barrel before the conflict to over $112 per barrel on Tuesday
- Prices had briefly touched nearly $120 per barrel in March
- India’s crude oil basket price crossed $114 per barrel in April
Although crude prices have eased slightly in May, they remain significantly higher than earlier levels.
Weak Rupee Adding To Pressure
The depreciation of the Indian rupee against the US dollar has further increased import costs for crude oil purchases.
The rupee has weakened nearly 6 per cent against the dollar this year and is currently trading around ₹96.34 per US dollar.
Since crude oil imports are paid for in dollars, the weaker currency has intensified pressure on domestic fuel pricing.
Analysts Warn Of Continued Inflationary Impact
Economists believe the continued rise in petrol and diesel prices could increase transportation costs, logistics expenses and inflation across several sectors.
Higher fuel costs are also expected to impact prices of essential commodities, packaged goods and public transportation in the coming weeks.
Global market analysts have warned that crude prices could remain elevated if geopolitical tensions involving Iran and the wider West Asia region continue.
