Petrol and diesel prices were increased again on Monday, marking the fourth hike in under two weeks as state-owned fuel retailers continued to pass on rising global crude oil costs to consumers. The latest increase has pushed cumulative fuel price hikes to nearly Rs 7.5 per litre since revisions resumed on May 15, raising concerns over inflation and transportation costs.
Petrol prices were raised by Rs 2.61 per litre, while diesel rates went up by Rs 2.71 per litre, according to industry sources.
In Delhi, petrol now costs Rs 102.12 per litre, up from Rs 99.51, while diesel prices increased to Rs 95.20 per litre from Rs 92.49.
The latest round of hikes comes amid elevated global crude oil prices, narrowing refining margins and a weakening rupee, all of which have increased India’s fuel import costs.
Fuel prices were first revised on May 15, when petrol and diesel rates were increased by Rs 3 per litre each after a prolonged freeze. This was followed by a 90-paise hike on May 19, and another increase on May 23, when petrol prices rose by 87 paise per litre and diesel by 91 paise.
Following Monday’s revision, petrol prices at PSU outlets in Mumbai climbed to Rs 111.21 per litre and diesel to Rs 97.83. In Kolkata, petrol now costs Rs 113.51 and diesel Rs 99.82 per litre, while Chennai prices stand at Rs 107.77 for petrol and Rs 99.55 for diesel.
Fuel prices differ across states because of varying local taxes.
State-run oil marketing companies — Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd — together account for nearly 90 per cent of India’s fuel retail market.
The recent fuel price surge follows a sharp rise in global crude oil prices, which have climbed more than 50 per cent since late February after US-Israeli strikes on Iran and disruptions in shipments through the Strait of Hormuz, a key global oil transit route.
The government had earlier defended the delay in fuel price revisions, saying oil retailers absorbed higher input costs to shield consumers from inflation during the conflict period. Opposition parties, however, alleged that price revisions were postponed until after key state elections.
The May 15 price hike came shortly after the ruling Bharatiya Janata Party expanded its electoral footprint by winning three of five state and Union Territory elections, including West Bengal.
Congress leader Pramod Tiwari on fuel price hike for fourth time, said, "The T20 cricket tournament is going on, and it seems Prime Minister Modi has also got carried away by the excitement. Within 10 days, he broke records. On May 15, prices were increased by Rs 3, on May 19 by another 90 paise, on May 23 again by 87 paise and 91 paise, and on May 25 by Rs 2.71, taking it beyond the century mark. Inflation has scored too many centuries. That is why, PM Modi, you are called the 'Inflation Man'. I want to say something to you. There is one thing I cannot understand. In the global market, crude oil prices are falling, from 122 dollars per barrel down to 98 dollars per barrel, yet you are increasing prices. It seems as though this is being done only to benefit companies, including some of Prime Minister Modi’s close associates."
Private fuel retailers also mirrored the PSU-led hikes. Nayara Energy matched every revision by state-run firms, while Shell had already increased petrol prices by Rs 7.41 per litre and diesel prices by up to Rs 25 per litre from April 1. Nayara Energy had earlier raised petrol and diesel prices by Rs 5 and Rs 3 per litre, respectively, in March.
Meanwhile, Jio-BP — the fuel retail joint venture between Reliance Industries Ltd and BP Plc — has aligned its pump prices with PSU retailers.
With the latest hikes, petrol and diesel prices have reached their highest levels since May 2022. Fuel rates had largely remained unchanged since April 2022, except for a Rs 2-per-litre cut announced in March 2024 ahead of the national elections.