West Asia Crisis Triggers Fourth Consecutive Price Hike for Petrol and Diesel in 10 Days Amid Crude Oil Price Surge

Fuel Prices Rise Again Amid Global Crude Oil Price Volatility

Petrol and diesel prices continued to rise on Monday, marking the fourth fuel price hike since May 15, as state-run oil marketing companies revised retail fuel rates upward in response to elevated global crude oil prices and a weakening rupee.

The latest increase takes the cumulative rise in petrol and diesel prices to nearly Rs 7.5 per litre, following a prolonged freeze in daily revisions. In Delhi, petrol prices rose by Rs 2.61 per litre to Rs 102.12, crossing the Rs 100 mark, while diesel prices increased by Rs 2.71 to Rs 95.20 per litre.

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Fuel rates were revised upward across other metro cities as well. Petrol prices in Mumbai climbed to Rs 111.21 per litre, while diesel rates rose to Rs 97.83 per litre. In Kolkata, petrol prices touched Rs 113.51 per litre and diesel prices reached Rs 99.82 per litre after the latest revision.

The increase in fuel prices was driven by rising international crude oil prices and higher import costs caused by rupee depreciation. Global oil markets have remained volatile due to continuing geopolitical tensions in West Asia and disruptions in shipments through the Strait of Hormuz, one of the world's most critical oil transit routes.

Oil and Natural Gas Corporation and Bharat Petroleum Corporation Limited executives said sustained crude price volatility and under-recoveries had increased pressure on oil retailers. The recent increase in petrol and diesel prices reflects the impact of prolonged geopolitical tensions in West Asia, rising global crude oil prices, and mounting pressure on oil marketing companies due to under-recoveries.

Monday's revision follows earlier hikes on May 15, May 19, and May 23. Petrol and diesel prices were initially raised by Rs 3 per litre on May 15, followed by smaller increases later in the month. Government officials had earlier said oil marketing companies were still facing heavy losses despite previous price increases. Petroleum Ministry Joint Secretary Sujata Sharma had stated that the May 15 hike reduced losses by around 25 per cent, though state-run firms were still losing nearly Rs 750 crore per day.

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According to estimates by CRISIL, oil companies were continuing to incur losses of about Rs 10 per litre on petrol and Rs 13 per litre on diesel even after earlier revisions. Compressed natural gas (CNG) prices have also increased in recent weeks, with rates in Delhi raised by Re 1 per kg on May 23, taking cumulative hikes since May 15 to Rs 4 per kg.