Fuel Price Hike in India Continues for Second Time in Days
The fuel price hike in India continued Tuesday as oil companies increased petrol and diesel prices for the second time within five days. Companies raised fuel prices by nearly 90 paise per litre across the country. The increase added more pressure on households already struggling with rising living costs.
The latest revision came just days after companies increased petrol and diesel prices by ₹3 per litre on May 15. That was the first major fuel hike in nearly four years.
In Delhi, petrol now costs ₹98.64 per litre after an 87-paise increase. Diesel rose 91 paise to ₹91.58 per litre. Mumbai, Kolkata, and Chennai also recorded fresh hikes.
Fuel Price Hike in India Hits Kolkata the Hardest
Kolkata saw the steepest increase among major metro cities.
Petrol prices in the city climbed 96 paise to ₹109.70 per litre. Diesel prices rose 94 paise to ₹96.07 per litre.
In Mumbai, petrol now sells at ₹107.59 per litre while diesel costs ₹94.08. Chennai also witnessed another increase. Petrol there reached ₹104.49 per litre, while diesel climbed to ₹96.11.
Premium fuel variants became costlier as well. Indian Oil’s XP95 petrol crossed ₹105 per litre in Delhi after the latest revision.
Iran Conflict and Oil Prices Push Fuel Costs Higher
Experts said the ongoing conflict in West Asia remains the biggest reason behind the fuel price hike in India.
Global crude oil prices continue rising as tensions involving Iran and the United States disrupt energy markets. Traders also worry about shipping movement through the Strait of Hormuz.
Brent crude prices stayed above $109 per barrel on Tuesday.
India imports more than 85% of its crude oil needs. Because of that, global oil price movements directly affect fuel costs inside the country.
Government data showed India’s crude oil basket averaged above $106 per barrel this month. Prices were much lower earlier this year.
Falling Rupee Creates More Pressure
The weak Indian rupee created another problem for fuel importers.
As the rupee trades near record lows against the U.S. dollar, oil imports become more expensive for companies.
Industry experts said oil companies absorbed losses for several weeks before increasing retail fuel prices this month.
Government officials recently confirmed that they are not considering a bailout package for oil companies.
Common People May Feel the Impact Soon
Higher fuel prices could increase transportation costs and push up prices of daily-use goods.
Bus operators, taxi drivers, delivery services, and small businesses may face higher expenses in the coming weeks.
Economists also warned that rising fuel prices could increase inflation if global crude oil prices remain high.
CNG prices in Delhi-NCR have already increased twice in recent days because of higher input costs.
Government Urges Citizens to Save Fuel
Last week, Prime Minister Narendra Modi urged citizens and government departments to conserve fuel whenever possible.
Several state governments have already advised offices to reduce travel, avoid unnecessary meetings, and encourage work-from-home arrangements.
Analysts believe fuel prices may continue rising if tensions in the Middle East worsen further or crude oil prices remain elevated.