Fuel prices hiked again: Petrol, diesel rates increased by 90 paise per litre for second time in a week
Fuel prices hiked again: Fuel prices across the country witnessed another sharp rise on Tuesday, with petrol and diesel becoming costlier by nearly 90 paise per litre. The latest revision marks the second increase in less than a week after state-owned oil marketing companies resumed price revisions following a prolonged freeze of over four years.
In the national capital, petrol prices climbed to Rs 98.64 per litre from Rs 97.77, while diesel rates increased to Rs 91.58 from Rs 90.67 per litre.
The hike comes days after oil companies raised fuel rates by Rs 3 per litre on Friday, citing mounting losses caused by soaring international crude oil prices.
The recent spike in fuel prices is largely linked to the sharp increase in global crude oil rates following the Iran conflict and disruptions in oil supply routes through the Strait of Hormuz, one of the world’s most important oil transit corridors.
Industry experts say international crude prices have surged significantly in recent months, increasing pressure on Indian oil retailers that had continued selling fuel at lower rates despite rising import costs.
Oil companies had maintained stable retail prices during the election period to shield consumers from inflationary pressure. However, the continued rise in global energy costs made further revisions unavoidable.
With Tuesday’s increase, petrol and diesel prices have now reached their highest levels since May 2022.
Fuel prices had largely remained unchanged since April 2022, except for a Rs 2 per litre reduction announced ahead of the 2024 Lok Sabha Elections.
Rates continue to vary across states because of differences in Value Added Tax (VAT) imposed by state governments.
In Mumbai, petrol is now being sold at Rs 107.59 per litre and diesel at Rs 94.08. Kolkata recorded petrol prices at Rs 109.70 and diesel at Rs 96.07 per litre, while Chennai saw petrol rates rise to Rs 104.49 and diesel to Rs 96.11.
The latest fuel hike follows recent increases in compressed natural gas (CNG) and cooking gas prices.
Earlier this month, CNG prices were increased by Rs 2 per kg in several cities, including Delhi and Mumbai, followed by another Re 1 increase shortly after.
Domestic LPG cylinder prices were also revised upward in March. Despite the increase, oil companies are reportedly still selling cooking gas below actual market cost and continue to absorb heavy losses.
According to industry estimates, the recent fuel hikes have only partially reduced the financial burden on oil marketing companies.
Officials from the Petroleum Ministry recently stated that oil companies continue to incur substantial daily losses even after the earlier price revision. Market analysts believe current retail prices still do not fully reflect international crude costs.
A report by Crisil estimated that after the earlier fuel hike, oil companies were still losing around Rs 10 per litre on petrol and nearly Rs 13 per litre on diesel.
Economists believe the latest fuel price increase could add pressure on inflation in the coming months.
India’s retail inflation rose to 3.48 per cent in April 2026, while wholesale inflation climbed sharply due to higher fuel and energy prices.
The government has already appealed for fuel conservation measures, including reduced travel and increased work-from-home practices, to help manage the country’s rising oil import bill and pressure on foreign exchange reserves.
- With inputs from agencies
