According to Business Standard, petrol and diesel prices were raised by ₹2.61-2.71 per litre on Sunday, marking the fourth increase in less than two weeks as state-owned fuel retailers continued to pass on rising international oil prices to consumers. This brings the cumulative revision to nearly ₹7.5 per litre since May 15, with the latest increase pushing petrol prices to ₹102.12 per litre in Delhi from ₹99.51 previously, while diesel rates increased to ₹95.20 per litre from ₹92.49. The sustained upward pressure reflects the back-to-back increases following a prolonged freeze in retail fuel prices, with the latest revision continuing the trend of incremental corrections across India's fuel market. The non-branded petrol in Delhi has breached the ₹100-a-litre mark as a result of these cumulative increases.
As reported by Business Standard, after Sunday's increase, petrol at PSU pumps in Mumbai now costs ₹111.21 per litre and diesel ₹97.83, while prices in Kolkata rose to ₹113.51 and ₹99.82, respectively. In Chennai, petrol is priced at ₹107.77 and diesel at ₹99.55. These prices vary across states due to local taxes, with the state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) together controlling 90 per cent of India's fuel market. The latest revision pushed petrol prices higher by ₹2.61 per litre and diesel by ₹2.71, according to industry sources, reflecting the continued impact of global crude oil price pressures.
According to Business Standard, OMCs are estimated to still be losing ₹8-10 per litre on petrol and diesel, despite the recent series of fuel price increases. The trajectory of under-recoveries illustrates the partial nature of each correction, with daily losses across the three companies standing at ₹1,000 crore before the first hike on May 15, falling to ₹750 crore after the second on May 19, and now estimated to have dropped below ₹500 crore after Saturday's revision. Industry executives and sector analysts suggest the incremental hike cycle is unlikely to end soon, with a fourth hike expected unless Brent stabilises below $100 a barrel, and in the best-case scenario analysts cite, closer to $70. The back-to-back increases follow a prolonged freeze in retail fuel prices and come amid elevated crude oil prices in the global market, tightening refining margins, and a weaker rupee, which have sharply raised the cost of imports. As per Grant Thornton Bharat, experts note that even if the West Asia situation stabilises, it will take time for risks to fully ease around the Strait of Hormuz, keeping crude prices elevated — likely above $90 per barrel.
According to Business Standard, in the last nine days, OMCs have raised fuel prices in a staggered manner by ₹3 per litre on May 15 and then by 90 paise per litre on May 19. Petrol and diesel prices were hiked again by 87 paise per litre and 91 paise a litre, respectively, on May 23. The first price hike in four years earlier this month came as OMCs were making under-recoveries of ₹1,000 crore per day on the sale of petrol, diesel and LPG cylinders. Following the ₹3-per-litre hike, the OMCs' under-recovery on the sale of petrol, diesel and LPG cylinders reduced 25 per cent to ₹750 crore per day from ₹1,000 crore per day, as confirmed by a senior government official. The price hikes come against the backdrop of severe financial stress being faced by the state-run oil firms as a result of selling fuel at comparatively lower prices, even as crude oil has hovered above $100 a barrel since the beginning of the West Asia crisis, compared to around $80 a barrel prior to the conflict.
