NEW DELHI, May 25: Fuel prices in India witnessed another sharp increase on Monday, with petrol becoming costlier by Rs 2.61 per litre and diesel by Rs 2.71 per litre. This marks the fourth revision in less than two weeks amid continued volatility in global crude oil markets linked to the Iran conflict.
With the latest revision, cumulative increases in petrol and diesel prices since May 15 have crossed Rs 7 per litre, taking retail rates to their highest levels since May 2022.
In the national capital, petrol prices climbed to Rs 102.12 per litre, while diesel reached Rs 95.20 per litre. Similar increases were recorded across major metro cities, with Mumbai, Kolkata and Chennai witnessing steep fuel rates driven by local taxes and levies.
The latest increase comes despite a sharp decline in international crude oil prices after reports suggested progress in diplomatic efforts involving the US and Iran. Brent crude fell more than 5 per cent amid hopes of easing tensions and reopening of the Strait of Hormuz, a crucial global oil supply route.
Global oil prices had earlier surged significantly following military escalation involving Iran and disruptions in maritime crude shipments, forcing domestic oil marketing companies to absorb rising costs for several weeks.
State-run fuel retailers Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited had delayed passing on the burden to consumers, citing inflation concerns. Opposition parties, however, alleged that the government postponed the hike until the completion of key state elections.
Apart from petrol and diesel, domestic LPG cylinder prices have also increased by Rs 60 per cylinder since mid-May, while compressed natural gas (CNG) rates have risen by Rs 4 per kilogram.
Congress leader Rahul Gandhi criticised the Centre over the repeated hikes, accusing the government of burdening citizens after elections. He alleged that fuel prices were being increased in phases to minimise public backlash.
The latest revision follows earlier hikes on May 15, May 19 and May 23. In Mumbai, petrol is now retailing above Rs 111 per litre, while diesel has crossed Rs 97. In Kolkata and Chennai too, fuel prices have moved close to the Rs 100 mark for diesel.
Private retailers have also adjusted rates in line with state-run firms. Nayara Energy and Shell plc had earlier revised prices upward amid mounting input costs. The Jio-bp joint venture has similarly aligned retail prices with public sector companies.
Economists warn that continued increases in fuel prices may intensify inflationary pressures by raising transportation and logistics costs. India’s wholesale inflation recently touched a multi-year high, driven largely by rising energy expenses.
Prime Minister Narendra Modi has urged citizens and government departments to adopt fuel conservation measures, including reducing non-essential travel and encouraging remote work, to help contain the country’s oil import bill.
Rating agency ICRA Limited said oil marketing companies continue to face heavy under-recoveries despite recent price revisions, particularly due to losses on LPG sales and elevated crude prices. Industry estimates suggest daily losses remain substantial, highlighting continued pressure on the sector.