India’s fuel consumers faced another sharp blow on Monday as petrol and diesel prices were increased by Rs 2.61 and Rs 2.71 per litre, marking the fourth hike in less than two weeks. With this latest revision, cumulative fuel price increases have now nearly touched Rs 7.5 per litre since May 15, raising concerns over inflation, transportation costs, and the broader economic impact.
Key Highlights
- Petrol and diesel prices surged for the fourth time in two weeks, pushing cumulative hikes close to Rs 7.5 per litre.
- Rising global crude prices and import costs have driven India’s highest fuel rates since May 2022.
The revised rates pushed petrol prices in Delhi to Rs 102.12 per litre, up from Rs 99.51, while diesel rose to Rs 95.20 per litre from Rs 92.49. Similar increases were recorded across India’s major metro cities. In Mumbai, petrol is now priced at Rs 111.21 per litre and diesel at Rs 97.83, while Kolkata’s rates climbed to Rs 113.51 and Rs 99.82, respectively. Chennai recorded petrol at Rs 107.77 per litre and diesel at Rs 99.55 while petrol price in Banglore is Rs 108.09 per litre. Prices continue to vary across states depending on local taxation policies.
| City | Petrol Price (Rs/litre) | Diesel Price (Rs/litre) | Previous Petrol Price (Rs/litre) | Previous Diesel Price (Rs/litre) |
|---|---|---|---|---|
| Delhi | Rs 102.12 | Rs 95.20 | Rs 99.51 | Rs 92.49 |
| Mumbai | Rs 111.21 | Rs 97.83 | Rs 108.49 | Rs 95.02 |
| Kolkata | Rs 113.51 | Rs 99.82 | Rs 110.64 | Rs 97.02 |
| Chennai | Rs 107.77 | Rs 99.55 | Rs 105.31 | Rs 96.98 |
| Bengaluru | Rs 108.09 | Rs 98.80 | Rs 105.48 | Rs 96.10 |
Global Crude Surge and Weak Rupee Push Fuel Costs Higher
The latest hike follows previous increases of Rs 3 per litre on May 15, 90 paise on May 19, and 87-91 paise on May 23, ending a prolonged period of fuel price stability that had remained largely unchanged since April 2022, except for a Rs 2 per litre reduction announced in March 2024 ahead of the general elections.
Industry experts attribute the continuous rise to higher international crude oil prices, tightening refining margins, and a weakening Indian rupee, all of which have increased import costs for domestic fuel retailers. Global crude prices have surged more than 50 percent since late February, largely due to geopolitical tensions in West Asia, including supply disruptions through the Strait of Hormuz, one of the world’s most critical oil transit routes.
India’s state-run oil marketing giants - Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited - control nearly 90 percent of the domestic fuel retail market and had initially absorbed rising global costs to shield consumers. However, sustained losses appear to have forced them to pass the burden on to consumers.
Also Read: Fuel Prices Rise Again as Petrol and Diesel Get Second Hike in a Week
Political Debate Intensifies as Consumers Brace for Inflation
The timing of these repeated hikes has sparked political criticism, with opposition parties accusing the government of delaying fuel price revisions until after crucial state elections. The government, however, has defended its earlier pricing freeze as a measure to protect consumers from immediate inflationary shocks.
Private retailers had already initiated fuel price hikes before state-owned firms revised rates. Nayara Energy increased petrol and diesel prices by Rs 5 and Rs 3 per litre, respectively, in March, while Shell raised petrol prices by Rs 7.41 per litre and diesel by as much as Rs 25 per litre from April 1. Meanwhile, Jio-bp has aligned its pricing with public sector revisions.
With petrol and diesel prices now at their highest levels since May 2022, economists warn of a likely domino effect on food inflation, logistics costs, and household expenses, placing further pressure on businesses and consumers already grappling with rising living costs.
