Mayur MohtaFuel prices across India climbed for the fourth time in under two weeks on Monday with petrol up by Rs 2.61 per litre and diesel by Rs 2.71 as the West Asia conflict keeps global crude oil markets on edge and oil marketing companies scramble to recover months of losses.
Filling up your tank just got more expensive again. Monday brought yet another round of fuel price increases across India, the fourth in less than two weeks, as state-owned oil marketing companies pushed petrol and diesel rates higher to keep pace with a global crude oil market thrown into chaos by the ongoing West Asia conflict.
Petrol Crosses Rs 100 in Delhi, Mumbai Surpasses Rs 111
Delhi residents now pay Rs 102.12 per litre for petrol up from Rs 99.51 while diesel in the capital climbed to Rs 95.20 from Rs 92.49. Mumbai crossed the Rs 111 mark, with petrol at Rs 111.21 and diesel at Rs 97.83 per litre at PSU pumps. Kolkata saw petrol rise to Rs 113.51 and diesel to Rs 99.82. In Chennai, petrol is now Rs 107.77 and diesel Rs 99.55. Prices vary from state to state owing to different local taxes and transportation costs.
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A Series of Rapid Revisions After Years of Freeze
The current wave of hikes started on May 15 marking the first major revision in nearly four years. That first cut alone added Rs 3 per litre. A 90-paise increase came next on May 19. Then came another 87–91 paise hike on May 23. And now Monday’s steep increase of Rs 2.61–2.71 per litre. Together, the four rounds have added nearly Rs 7.50 per litre to fuel costs in just ten days.
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Why Are Prices Rising So Fast?
The trigger lies thousands of kilometres away. The West Asia conflict particularly US-Israeli strikes on Iran and disruptions to the Strait of Hormuz, a critical global oil transit route sent international crude prices soaring by over 50 per cent in recent months. India’s crude import basket averaged around USD 69 per barrel in February before the fighting intensified. By May, that figure had jumped to an average of USD 113–114 per barrel.
Despite those soaring costs, India’s three public sector oil giants Indian Oil Corporation (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) held retail prices steady for 76 days straight. Together, they control over 90 per cent of India’s 1,03,000-plus fuel stations. But absorbing those losses became impossible.
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Companies Were Bleeding Rs 1,000 Crore a Day
BPCL stated last week that it continues to suffer revenue losses of Rs 25–30 per litre on diesel and Rs 10–14 per litre on petrol even after the new hikes. ONGC Director (Exploration) Sushma Rawat put the scale of losses in sharp perspective.
“The government has given relief to the people for 76 days, during which the price has not increased. The price has increased, because the OMCs were taking a hit of almost Rs 1,000 crore a day. How long do you sustain that?” she asked.
Former BPCL Marketing Director Sukhmal Kumar Jain agreed, noting that the companies remain in deep financial trouble.
“The public sector oil companies are still in heavy under-recoveries,” Jain told ANI, pointing out that crude had risen from USD 65–70 per barrel to USD 110–115 during the conflict period.
Inflation Fears Grow as Transport Costs Rise
Higher fuel prices don’t just hurt at the pump they ripple through the entire economy. Transport costs go up, raising prices of goods, vegetables and logistics services. Economists warn that the back-to-back hikes could stoke broader inflationary pressures across sectors hitting ordinary households who are already managing tighter budgets.
Aditya Didwaniya
Akshay Didwaniya
Pratik Agrawal
