Petrol, diesel prices hiked by Rs 3, Delhi rates near Rs 100 mark

With the latest revision, petrol prices in Delhi rose from Rs 94.77 to Rs 97.77 per litre, while diesel rates increased from Rs 87.67 to Rs 90.67 per litre.

In Short

• Petrol and diesel prices hiked by Rs 3 per litre from Friday
• Fuel prices steady for 11 weeks before recent hike due to West Asia conflict
• Global crude oil prices surged from USD 69 to around USD 113 per barrel

Petrol and diesel prices were hiked by Rs 3 per litre on Friday amid mounting pressure from rising global crude oil prices triggered by the ongoing West Asia conflict, news agency PTI reported. Following the revision, petrol prices in Delhi increased from Rs 94.77 to Rs 97.77 per litre, while diesel rates rose from Rs 87.67 to Rs 90.67 per litre.

Petrol prices were also revised in other metros, reaching Rs 108.74 per litre in Kolkata, Rs 106.68 in Mumbai and Rs 103.67 in Chennai, with hikes ranging between Rs 2.83 and Rs 3.29 per litre.

Diesel prices, too, saw a sharp increase across the metros, climbing to Rs 95.13 per litre in Kolkata, Rs 93.14 in Mumbai and Rs 95.25 in Chennai.

India had so far avoided a major increase in retail fuel prices despite surging global crude oil prices and the worsening situation in West Asia.

The latest Rs 3 per litre increase covers only a fraction of the pressure stemming from the West Asia conflict, PTI news agency quoted sources as saying.

State-run oil marketing companies had held retail fuel prices steady for nearly 11 weeks despite rising input costs, but were eventually forced to pass on part of the burden as losses mounted and operations became increasingly difficult to sustain financially.

Petrol and diesel prices had largely remained unchanged since April 2022, except a one-time Rs 2 per litre cut announced in March 2024 ahead of the Lok Sabha elections.

Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd suspended daily fuel price revisions in April 2022 to shield consumers from the global oil shock triggered by Russia’s war against Ukraine. While the three firms absorbed heavy losses initially, they later recovered some of the hit as crude prices eased.

However, the fresh conflict in West Asia has once again pushed global energy prices sharply higher. The crude basket India imports, which averaged around USD 69 per barrel in February before the conflict escalated, has since climbed to nearly USD 113-114 per barrel.

GROWING SPECULATIONS OF FUEL HIKE

Speculation over another round of fuel price hikes had been building for days as global crude oil prices continued to surge amid the escalating West Asia conflict.

Speaking to India Today earlier this week, Infomerics Ratings Chief Economist Manoranjan Sharma said the likelihood of a fuel price revision had risen sharply due to global market conditions rather than policy considerations.

“With Brent crude above $105 per barrel, fuel price hikes after May 15 are highly likely,” Sharma said.

As speculation over a sharp fuel price hike spread, petrol pumps across several states witnessed heavy rushes, with many consumers scrambling to top up their tanks before any revision kicked in.

An India Today ground report from 15 petrol pumps across Delhi-NCR, Uttar Pradesh, Gujarat, Odisha and Bihar found unusually long queues and a spike in demand, as motorists rushed to refill vehicles amid fears of a steep increase in petrol and diesel prices.

Several customers opted for full-tank refills following widespread buzz that fuel prices could jump by Rs 5 to Rs 20 per litre from May 15.

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