Fuel Prices Surge Again: Petrol and Diesel Rates Increase by Up to Rs 2.71
Significant Rise in Fuel Prices
A file image of a petrol pump in Guwahati. (Photo: Chinmoy Bhowmick/'X')
New Delhi, May 25: On Monday, petrol and diesel prices saw an increase of Rs 2.61 to Rs 2.71 per litre, marking the fourth hike within a span of less than two weeks. This adjustment reflects the ongoing trend of state-owned fuel retailers transferring the burden of rising international oil prices to consumers.
Since the resumption of fuel price adjustments on May 15, following an extended period of stability, the total increase in petrol and diesel prices has approached Rs 7.5 per litre. This surge has raised alarms regarding inflation and the potential for increased transportation costs throughout the economy.
According to industry sources, petrol prices have risen to Rs 102.12 per litre in Delhi, up from Rs 99.51, while diesel prices have increased to Rs 95.20 per litre from Rs 92.49.
The recent price hikes come after a long period of price stability and are attributed to high global crude oil prices, reduced refining margins, and a depreciating rupee, all of which have significantly escalated import costs.
Earlier adjustments included a Rs 3 per litre increase on May 15, followed by a 90 paise rise on May 19, and further increases of 87 paise for petrol and 91 paise for diesel on May 23.
Following the latest adjustments, petrol prices at public sector pumps in Mumbai have reached Rs 111.21 per litre, while diesel is priced at Rs 97.83. In Kolkata, petrol now costs Rs 113.51 and diesel Rs 99.82. Chennai's prices stand at Rs 107.77 for petrol and Rs 99.55 for diesel.
Price variations across states are primarily due to differing local taxes.
The Indian fuel market is predominantly controlled by state-owned companies, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), which together account for 90% of the market share.
These consecutive price hikes follow a significant rise in global crude oil prices, which have surged over 50% since late February due to US-Israeli military actions against Iran and disruptions in shipments through the Strait of Hormuz, a vital global oil transit route.