Fuel prices have increased by ₹3 per litre across India, with petrol now costing ₹97.77 per litre in Delhi and diesel at ₹90.67 per litre. According to reports from Business Standard, Kolkata recorded the highest increase in petrol prices, rising by ₹3.29 to ₹108.74 per litre, while Mumbai saw petrol prices increase by ₹3.14 to ₹106.68 per litre. Chennai recorded a hike of ₹2.83, taking petrol prices to ₹103.67 per litre. The latest price hike marks the first increase in four years by state-run refiners, coming after over two years of holding prices steady since March 2024. In Jaipur, petrol prices rose to ₹107.97 per litre from ₹104.72 per litre and diesel climbed to ₹93.23 per litre from ₹90.21 per litre following the nationwide hike.
Diesel prices also rose across major cities, with Kolkata now charging ₹95.13 per litre after a ₹3.11 increase. As reported by Business Standard, Mumbai saw diesel prices increase by ₹3.11 to ₹93.14 per litre, while Chennai recorded a ₹2.86 rise, taking diesel prices to ₹95.25 per litre. The uniform price increases across metro cities reflect the broader impact of global crude oil market volatility on domestic fuel pricing. According to Mint, the price hike comes ahead of the crucial kharif sowing season, which could push up input costs and food inflation in the coming months.
The government's modest ₹3 per litre fuel price hike provides only limited relief to oil marketing companies (OMCs) grappling with elevated global crude oil prices. According to Mint, the public sector OMCs—Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd and Hindustan Petroleum Corp. Ltd—have been losing around ₹20 per litre on petrol and ₹100 per litre on diesel sales due to high oil prices and unchanged retail prices in India. Prashant Vasisht from ICRA Ltd estimates that at crude prices of $105-110 per barrel, OMCs incur losses of about ₹500 crore daily on auto fuels and domestic LPG, even after factoring the fuel price hike. At their peak, oil marketing companies were absorbing losses of ₹23-30 per litre on petrol and diesel, translating to a combined daily loss of ₹1,300-1,400 crore across petrol, diesel, and LPG.
Despite the fuel price increases, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri maintained that India has sufficient fuel reserves and uninterrupted energy supplies. On May 12, Puri stated there had been no reports of fuel shortages in the country and that refineries were operating at optimum levels. The fuel price revision comes amid growing concerns over global energy supplies due to tensions in West Asia and disruptions in the Strait of Hormuz, a key maritime trade route for crude oil transportation. Brent crude oil prices have remained above $100 per barrel following the ongoing conflict involving the US, Israel and Iran since February this year. The widening regional conflict has impacted fuel markets as several West Asian countries are major energy suppliers.
Prime Minister Narendra Modi recently made seven appeals to citizens to strengthen economic resilience by reducing dependence on imported fuel and adopting environmentally sustainable alternatives amid the ongoing West Asia conflict. PM Modi urged people to prioritise work from home, reduce fuel consumption, avoid foreign travel for a year, adopt Swadeshi products, cut cooking oil usage, shift towards natural farming and curb gold purchases. To tackle volatility in global fuel prices, the Prime Minister also called for changes in transportation habits. He appealed to citizens to reduce petrol and diesel consumption by using metro services and public transport wherever available, opting for carpooling when private vehicles are necessary, preferring railways for goods transportation and increasing the use of electric vehicles wherever possible. In line with the appeal, Delhi Chief Minister Rekha Gupta on Thursday ordered curbs on the use of official vehicles by ministers, MLAs and other public representatives, and urged Delhi residents to adopt carpooling and use public transport to reduce fuel consumption.
