Petrol, Diesel Prices Hiked By Up To 91 Paise; Rates Climb Nearly Rs 5 In 10 Days

NEW DELHI, May 23: Petrol and diesel prices were hiked again on Saturday by 87-91 paise per litre, pushing the cumulative increase in retail fuel rates to nearly Rs 5 per litre in less than 10 days amid soaring global crude oil prices and mounting losses of oil marketing companies.

According to industry sources, petrol prices were raised by 87 paise per litre and diesel by up to 91 paise across the country. In Delhi, petrol now costs Rs 99.51 per litre, up from Rs 98.64, while diesel rose to Rs 92.49 from Rs 91.58.

The latest increase follows earlier hikes of Rs 3 per litre on May 15 and 90 paise per litre on May 19 after state-run oil firms ended a prolonged freeze on fuel prices. Since May 15, petrol and diesel rates have increased by close to Rs 5 per litre, raising concerns over inflation and transportation costs.

Private fuel retailers, including Nayara Energy and Shell, also raised prices in line with state-run companies. Nayara had earlier increased petrol and diesel prices by Rs 5 and Rs 3 per litre respectively in March, while Shell raised petrol prices by Rs 7.41 and diesel by up to Rs 25 per litre from April 1. Jio-BP, however, revised rates in tandem with PSU oil firms.

After Saturday’s revision, petrol prices at PSU pumps reached Rs 108.49 per litre in Mumbai, Rs 110.64 in Kolkata and Rs 105.31 in Chennai. Diesel prices rose to Rs 95.02 in Mumbai, Rs 97.02 in Kolkata and Rs 96.98 in Chennai. Fuel prices vary across states depending on local taxes.

The repeated hikes come amid a sharp rise in global crude oil prices, which have surged more than 50 per cent since late February following US-Israeli strikes on Iran and disruptions in shipments through the Strait of Hormuz.

State-owned Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd, which together control about 90 per cent of the domestic fuel market, had earlier held prices steady despite rising input costs. The government said the move was aimed at shielding consumers from inflation, while opposition parties accused it of delaying revisions until after elections.

Petroleum Ministry Joint Secretary Sujata Sharma recently said the May 15 hike reduced oil companies’ losses by nearly one-fourth, though PSU firms were still losing around Rs 750 crore daily. Crisil estimated oil companies continued to lose nearly Rs 10 per litre on petrol and Rs 13 per litre on diesel even after earlier hikes.

Petrol and diesel prices are now at their highest levels since May 2022. Rates had largely remained unchanged since April 2022 except for a Rs 2 per litre reduction in March 2024 ahead of national elections.

The fuel price hikes come as the government pushes measures to reduce fuel consumption and contain the country’s oil import bill. Prime Minister Narendra Modi recently urged citizens and government departments to conserve fuel, encourage remote working and avoid unnecessary travel amid pressure on foreign exchange reserves and the current account deficit.

Several states have also advised departments to reduce travel and office attendance, while CNG prices have risen by Rs 3 per kg in two instalments during the same period.

Industry officials said the latest increases were calibrated to ease pressure on oil companies without causing a major inflation shock, though they acknowledged the hikes would further increase price pressures. India’s retail inflation rose to 3.48 per cent in April from 3.40 per cent in March, while wholesale inflation touched a 42-month high of 8.3 per cent, driven largely by higher fuel and energy costs. (Agencies)