Petrol, Diesel Prices Hiked Again by 90 Paise Per Litre Amid Rising Crude Oil Costs

Petrol and diesel prices were increased by around 90 paise per litre on Tuesday, marking the second hike in fuel rates within a week after state-run oil marketing companies ended a nearly four-year freeze on retail price revisions.

Following the latest increase, petrol prices in Delhi rose to Rs 98.64 per litre from Rs 97.77, while diesel prices climbed to Rs 91.58 per litre from Rs 90.67, according to industry sources. Fuel prices continue to vary across states depending on local taxes and levies.

The latest revision comes just days after public sector fuel retailers increased petrol and diesel prices by Rs 3 per litre on Friday, the first major hike in over four years. The increase was attributed to rising global crude oil prices following the ongoing Iran conflict, which has sharply pushed up international energy costs.

India, the world’s third-largest importer and consumer of crude oil, had delayed retail fuel price revisions despite sustained pressure from global markets. Analysts believe oil companies are now gradually passing on the burden of mounting under-recoveries to consumers.

State-run fuel retailers have been incurring daily losses due to increased crude prices. Industry sources indicated that additional fuel price increases may be required in the coming weeks if global crude prices remain elevated. Public sector retailers have not officially commented on the future pricing outlook.

Dealers and analysts noted that the staggered increase in fuel prices resembles the phased hikes implemented in April 2022 during the post-pandemic recovery period, when oil companies gradually adjusted rates over several days.

Opposition parties have criticized the timing of the price hikes, alleging that the government delayed fuel price revisions until the conclusion of recent state elections. The ruling Bharatiya Janata Party, led by Prime Minister Narendra Modi, secured victories in two of the four states that went to the polls.

Amid concerns over rising energy costs and inflationary pressures, Prime Minister Modi has urged citizens to reduce unnecessary travel and conserve fuel consumption.

The continued rise in petrol and diesel prices is expected to increase transportation and logistics costs, potentially impacting inflation and household budgets across the country.