Fuel prices in India continued their upward trajectory on Monday with petrol prices increased by ₹2.61 per litre and diesel by ₹2.71 per litre. According to reports from Goodreturns, this marks the fourth price revision in 10 days amid rising global energy concerns linked to the ongoing Iran conflict. The latest increase follows another round of fuel price revisions announced on May 23, when petrol prices were raised by 87 paise per litre and diesel rates went up by 91 paise per litre. CNG prices in Delhi were also revised higher by Re 1 per kg to ₹81.09 during the same period. After Monday's revision, cumulative increases in petrol and diesel prices have reached nearly ₹7.5 per litre since the daily revisions resumed following a prolonged freeze. With the latest hike, cumulative increases in petrol and diesel prices are almost ₹5 per litre since the state-owned oil marketing companies ended the hiatus in rate revision on May 15.
Following the latest hike, petrol in Delhi is now priced at ₹102.12 per litre, crossing the ₹100-per-litre mark once again from the previous ₹99.51. As reported by Goodreturns, diesel in Delhi now costs ₹95.20 per litre from ₹92.49 after the revision. The price increases have added further pressure on household budgets already strained by inflation. The fresh hike pushed fuel prices higher across all major metropolitan cities, with Mumbai recording petrol at ₹108.49 per litre and diesel at ₹95.02, Kolkata showing petrol at ₹110.64 per litre and diesel at ₹97.02, and Chennai prices standing at ₹105.31 for petrol and ₹96.98 for diesel. Fuel prices are now at their highest levels since May 2022, raising concerns over inflationary pressures and higher transportation and logistics costs across the economy.
According to the latest data from Goodreturns, diesel prices also witnessed sharp increases across the country. In Kolkata, diesel prices touched ₹97.02 per litre with a ₹2.80 hike, while Mumbai recorded diesel prices at ₹95.02 per litre. Chennai saw diesel rates rise to ₹96.98 per litre after a ₹2.57 increase. The price variations reflect different tax structures and local market conditions across different states, with prices varying significantly across regions depending on local taxes. CNG prices in Delhi were also revised higher by Re 1 per kg to ₹81.09, marking the third increase in recent days and taking the cumulative hike to ₹4 per kg.
The latest fuel price revision comes amid continued geopolitical tensions surrounding Iran, which have disrupted global crude oil supply chains. As reported by Goodreturns, concerns over movement through the Strait of Hormuz - one of the world's most critical oil shipping routes - have led to volatility in international crude markets over the past several weeks. Brent crude had surged above $110 per barrel during the peak of the conflict before easing slightly on hopes of a potential US-Iran peace agreement. According to earlier statements from state-run fuel retailers, companies were reportedly absorbing losses estimated at nearly ₹1,000 crore per month before the recent price adjustments. ONGC Director (Exploration) Sushma Rawat explained that oil marketing companies were absorbing losses of nearly ₹1,000 crore per day while keeping retail prices unchanged, stating "The government has given relief to the people for 76 days, during which prices were not increased. But the OMCs were taking a hit of almost ₹1,000 crore a day. How long can that continue?"
Industry executives warn that sustained fuel price increases could ripple through freight rates, food prices and overall supply-chain costs in the coming months. Vineet Agarwal, Managing Director of Transport Corporation of India (TCI), told Firstpost that fuel-price volatility is now structural, adding that businesses would need to focus on improving asset productivity, accelerating multimodal freight and reducing diesel dependence. He also warned that geopolitical tensions in West Asia had embedded a lasting risk premium into crude oil markets, making a structurally higher fuel-price environment more likely even if prices temporarily cool. India imports nearly 85 per cent of its crude oil requirements, making domestic fuel prices highly sensitive to geopolitical disruptions and currency fluctuations. The latest revision follows increases of ₹3 per litre on May 15, around 90 paise on May 19, and the 87-91 paise hike on May 23, with industry executives noting that the government still has several policy options including excise duty cuts, targeted subsidies and calibrated retail hikes. According to Crisil, oil marketing companies were losing about ₹10 per litre on petrol and ₹13 per litre on diesel even after the earlier hike.
