Petrol and diesel prices were hiked by Rs 3 per litre on Friday amid mounting pressure from rising global crude oil prices triggered by the ongoing West Asia conflict, news agency PTI reported.
With the latest revision, petrol prices in Delhi increased from Rs 94.77 to Rs 97.77 per litre, while diesel rates rose from Rs 87.67 to Rs 90.67 per litre. Petrol has now come within striking distance of the Rs 100 mark in the national capital.
Prices in other metros
Petrol prices were also revised in other metros, reaching Rs 108.74 per litre in Kolkata, Rs 106.68 in Mumbai and Rs 103.67 in Chennai, with hikes ranging between Rs 2.83 and Rs 3.29 per litre.
Diesel prices saw a sharp increase as well, climbing to Rs 95.13 per litre in Kolkata, Rs 93.14 in Mumbai and Rs 95.25 in Chennai.
Why the hike happened now
India had so far avoided a major increase in retail fuel prices despite surging global crude oil prices and the worsening situation in West Asia. State-run oil marketing companies held retail fuel prices steady for nearly 11 weeks despite rising input costs, but were eventually forced to pass on part of the burden as losses mounted.
The latest Rs 3 per litre increase covers only a fraction of the pressure stemming from the West Asia conflict, PTI quoted sources as saying.
The crude basket India imports, which averaged around USD 69 per barrel in February before the conflict escalated, has since climbed to nearly USD 113-114 per barrel.
A look back at price trends
Petrol and diesel prices had largely remained unchanged since April 2022, except a one-time Rs 2 per litre cut announced in March 2024 ahead of the Lok Sabha elections.
Oil marketing companies had suspended daily fuel price revisions in April 2022 to shield consumers from the global oil shock triggered by Russia’s war against Ukraine. While the three firms absorbed heavy losses initially, they later recovered some of the hit as crude prices eased.
Speculation and panic at pumps
Speculation over a fuel price hike had been building for days. Infomerics Ratings Chief Economist Manoranjan Sharma told India Today earlier this week: “With Brent crude above $105 per barrel, fuel price hikes after May 15 are highly likely.”
As speculation spread, petrol pumps across several states witnessed heavy rushes. An India Today ground report from 15 petrol pumps across Delhi-NCR, Uttar Pradesh, Gujarat, Odisha and Bihar found unusually long queues and a spike in demand.
Several customers opted for full-tank refills following widespread buzz that fuel prices could jump by Rs 5 to Rs 20 per litre from May 15. The actual hike of Rs 3, while significant, was on the lower end of market fears.
With global crude remaining elevated and the West Asia conflict showing no signs of easing, consumers may need to brace for further increases in the coming weeks.
