Shares of oil marketing companies such as Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation (IOCL), and Bharat Petroleum Corporation (BPCL) rose in early trade on May 19 after petrol and diesel prices were increased by 90 paise per litre. This is the second hike in less than a week. The government has raised fuel prices to recover losses caused by high global crude oil prices.
After the latest increase, petrol in Delhi now costs Rs 98.64 per litre, up from Rs 97.77, while diesel is priced at Rs 91.58 per litre, up from Rs 90.67. This comes just days after fuel prices were increased by Rs 3 per litre on May 15 due to rising global crude oil prices, driven by tensions in West Asia and disruptions around the Strait of Hormuz, an important shipping route which carries more than one fifth of the global crude oil demand.
