New Delhi: Petrol and diesel prices were increased again on Tuesday by around 90 paise per litre, marking the second fuel price hike in less than a week. The increase comes after state-run oil companies ended a long freeze on fuel prices that had continued for nearly four years.
In Delhi, petrol price rose to Rs 98.64 per litre from Rs 97.77, while diesel increased to Rs 91.58 from Rs 90.67 per litre.
Last Friday, oil companies had already increased petrol and diesel prices by Rs 3 per litre. That was the first major revision since 2022.
Why Prices Are Increasing?
Fuel prices are rising mainly because global crude oil prices have sharply increased. Crude prices have jumped more than 50 percent since the Iran conflict began earlier this year.
The war and supply concerns around the Strait of Hormuz, an important route for global oil shipments, pushed oil prices higher worldwide.
Despite rising costs, Indian fuel retailers had kept prices unchanged for months to protect consumers from inflation. However, oil companies were reportedly suffering heavy losses.
According to government officials, oil companies were still losing around Rs 750 crore every day even after the earlier hike.
Prices Across Major Cities
Fuel prices differ from state to state because of local taxes.
After Tuesday’s increase, petrol in Mumbai costs Rs 107.59 per litre, while diesel is priced at Rs 94.08. In Kolkata, petrol costs Rs 109.70 and diesel Rs 96.07. Chennai petrol price rose to Rs 104.49 and diesel to Rs 96.11 per litre.
Impact On Inflation
Experts said the latest increase is still smaller compared to the rise in global crude oil prices. Oil companies are continuing to absorb some losses.
The higher fuel prices are expected to increase transportation and daily costs, which may push inflation further higher in the coming months.
India’s retail inflation stood at 3.48 percent in April, while wholesale inflation climbed to an over three-year high of 8.3 percent due to rising fuel and energy costs.
