Petrol and diesel prices were raised again on Monday, marking the fourth fuel price increase in less than two weeks as government-owned oil marketing companies continued to pass on rising global crude oil costs to consumers.
With the latest revision, petrol prices have risen by ₹2.61 per litre and diesel by ₹2.71 per litre since the latest round of hikes began. Cumulative increases since May 15 have now reached nearly ₹7.5 per litre.
In Delhi, petrol now costs ₹102.12 per litre, while diesel is priced at ₹95.20.
The repeated hikes come amid elevated global crude oil prices, tighter refining margins and a weaker rupee, all of which have sharply increased India’s fuel import bill.
Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation together account for nearly 90 percent of India’s fuel retail market.
--Chennai: ₹107.77 (+₹2.26)
--Thiruvananthapuram: ₹115.49 (+₹2.85)
--Chennai: ₹99.55 (+₹2.57)
--Thiruvananthapuram: ₹104.41 (+₹2.86)
Fuel prices vary across states depending on local taxes and levies.
The latest increase follows a sharp surge in international crude oil prices after geopolitical tensions in West Asia intensified.
Global crude prices had risen more than 50 percent since late February following US-Israeli strikes on Iran and disruptions to shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes.
Although crude oil prices eased sharply on Monday morning amid hopes of a ceasefire agreement involving Iran, retail fuel prices in India continue to reflect the earlier surge in import costs.
Economists and analysts say more fuel price increases may be on the cards. According to Madan Sabnavis, chief economist at Bank of Baroda, the recent increases may still not fully compensate oil marketing companies for losses incurred during the prolonged freeze in retail fuel prices.
Financial services firm Emkay Global Financial Services has estimated that petrol and diesel prices could rise by as much as ₹10 per litre in the near term if crude oil prices remain elevated.
