Petrol, diesel prices up by Rs 2.61-2.71; hikes cross Rs 7.5/litre in two weeks

State-owned fuel retailers on Monday increased petrol and diesel prices by up to Rs 2.71 per litre, marking the fourth hike in less than a fortnight as companies continued passing rising global crude oil costs on to consumers.

The latest revision takes the cumulative increase in fuel prices since 15 May to nearly Rs 7.5 per litre, intensifying concerns over inflation and higher transportation costs across the economy.

Petrol prices were raised by Rs 2.61 per litre, while diesel prices climbed by Rs 2.71, according to industry officials. In Delhi, petrol now costs Rs 102.12 per litre, up from Rs 99.51, while diesel has risen to Rs 95.20 from Rs 92.49.

The fresh increases follow a prolonged freeze in retail fuel rates and come against the backdrop of elevated international crude oil prices, weaker refining margins and depreciation in the rupee, all of which have significantly increased import costs.

Fuel prices were first revised on 15 May, when petrol and diesel were each increased by Rs 3 per litre. This was followed by hikes of around 90 paise per litre on 19 May and further increases on 23 May.

In Mumbai, petrol now costs Rs 111.21 per litre and diesel Rs 97.83. In Kolkata, prices have risen to Rs 113.51 and Rs 99.82 respectively, while in Chennai petrol is retailing at Rs 107.77 and diesel at Rs 99.55. Fuel prices vary across states because of differing local taxes.

Public sector firms — Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd — together account for around 90 per cent of India’s fuel retail market.

The recent surge in fuel prices follows a sharp rise in international crude oil rates, which have climbed more than 50 per cent since late February amid escalating tensions in West Asia, including US-Israeli strikes on Iran and disruptions to shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes.

Despite rising input costs, state-run fuel retailers had held pump prices steady for more than two months, with the government arguing the move was intended to shield consumers from inflationary pressures. Opposition parties, however, alleged that revisions were delayed until after key state and Union Territory elections.

The first increase on 15 May came shortly after the Bharatiya Janata Party expanded its electoral presence by securing victories in three of five state and UT polls, including West Bengal.

Private fuel retailers also moved quickly to match state-run companies. Nayara Energy mirrored the latest increases, while Jio-BP — the joint venture between Reliance Industries and BP — aligned its pricing with public sector firms.

Private retailers had already implemented significant price increases earlier in the year. Nayara Energy raised petrol and diesel prices by Rs 5 and Rs 3 per litre respectively in March, while Shell increased petrol prices by Rs 7.41 per litre and diesel prices by as much as Rs 25 per litre from 1 April.

With the latest revisions, petrol and diesel prices have reached their highest levels since May 2022. Prior to the current round of increases, fuel rates had largely remained unchanged since April 2022, apart from a Rs 2 per litre cut announced in March 2024 ahead of the general election.

With PTI inputs