Summary of this article
Petrol prices increased by 87 paise per litre nationwide
Diesel rates rose by 91 paise amid crude surge
Global oil tensions continue pushing domestic fuel prices higher
Households and transport operators are set to face higher fuel expenses after oil marketing companies (OMCs) increased petrol and diesel prices again on Tuesday.
Petrol prices rose by up to 87 paise per litre, and diesel up by 91 paise per litre across major cities. The latest revision comes less than a week after state-run oil companies raised fuel prices by Rs 3 per litre, ending a freeze that had remained in place for more than four years.
In New Delhi, petrol prices increased from Rs 97.77 to Rs 98.64 per litre, while diesel prices rose from Rs 90.67 to Rs 91.58 per litre.
Fuel Prices Increase Across Metro Cities
Fuel rates continued to rise across the country, although the final retail price varied from state to state because of differences in value-added tax (VAT).
Kolkata recorded the sharpest increase among the four metro cities. Petrol prices there rose by 96 paise to Rs 109.70 per litre, while diesel prices increased by 94 paise to Rs 96.07 per litre.
The latest hike follows rising losses faced by public sector OMCs due to the sharp increase in global crude oil prices. State-run retailers had kept domestic fuel prices unchanged for several years despite volatility in international markets.
Compressed natural gas (CNG) prices have also increased in recent days. On May 15, CNG prices were raised by Rs 2 per kg in cities such as Delhi and Mumbai. Another increase of Re 1 per kg followed on Sunday.
Crude Oil Prices Remain Elevated
Global crude oil prices have climbed sharply in recent months due to continuing tensions in West Asia. Crude prices have risen more than 50 per cent since late February after military strikes involving Iran, the US and Israel disrupted energy supply routes through the Strait of Hormuz, one of the world’s key oil transit channels.
Brent crude moved above $110 per barrel after gaining nearly 8 per cent last week, while West Texas Intermediate (WTI) crude traded close to $107 per barrel.
India imports nearly 85-90 per cent of its crude oil requirements, making domestic fuel prices sensitive to movements in international oil markets. Rising crude prices are also adding pressure on the country’s foreign exchange reserves.
Government Urges Consumers Against Panic Buying
The government has urged consumers not to engage in panic buying and said supplies of petrol, diesel, LPG and natural gas remain adequate across the country despite the ongoing geopolitical tensions.
Officials from the Ministry of Petroleum and Natural Gas said Indian refineries continue to operate normally and fuel stocks remain sufficient nationwide. However, the Centre did not indicate whether further fuel price revisions could take place in the coming weeks.
