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CHANDIGARH: Petrol and diesel prices were increased sharply again on Monday, marking the fourth fuel price hike in less than two weeks as state-owned oil marketing companies continued passing on the impact of soaring international crude oil prices to consumers.
The latest increase saw petrol prices rise by Rs 2.61 per litre and diesel by Rs 2.71 per litre, bringing the cumulative increase since May 15 to nearly Rs 8 per litre and pushing retail fuel prices to their highest levels since May 2022.
The repeated upward revisions are expected to intensify inflationary pressures and raise transportation and logistics costs across sectors already burdened by rising input expenses.
Following Monday’s revision, petrol prices in Chandigarh rose to Rs 102 per litre from Rs 99.30 earlier, while diesel prices increased from Rs 92.49 to Rs 95.20 per litre.
In other major cities:
- Mumbai: Petrol Rs 111.21/litre, Diesel Rs 97.83/litre
- Kolkata: Petrol Rs 113.51/litre, Diesel Rs 99.82/litre
- Chennai: Petrol Rs 107.77/litre, Diesel Rs 99.55/litre
- Delhi: Petrol Rs 102.12/litre, Diesel Rs 95.20/litre
Fuel prices continue to vary from state to state depending on local VAT and other taxes.
Fourth hike since May 15
Monday’s increase is the fourth revision since fuel prices resumed moving upward after a prolonged freeze.
The sequence of increases has been:
- May 15: Rs 3 per litre increase in both petrol and diesel
- May 19: Around 90 paise per litre hike
- May 23: Petrol up by 87 paise, diesel by 91 paise
- May 25: Petrol up by Rs 2.61, diesel by Rs 2.71
Together, these increases have pushed fuel rates up by almost Rs 8 per litre in 12 days.
Global crude surge behind hikes
Industry sources attributed the repeated increases to the sharp rise in global crude oil prices triggered by the ongoing conflict in West Asia.
International crude prices have reportedly surged more than 50 per cent since late February following US-Israeli strikes on Iran and disruptions to shipping routes through the strategically crucial Strait of Hormuz.
India, which imports the majority of its crude oil requirements, has been directly affected by the spike in global energy prices.
The rising import bill, weakening rupee and tightening refining margins have collectively increased pressure on fuel retailers.
State-run firms resume price pass-through.
State-owned oil marketing companies implemented the latest revisions:
Together, these companies control nearly 90 per cent of India’s fuel retail market.
Officials said the companies had initially absorbed rising input costs during the first phase of the West Asia conflict to shield consumers from immediate inflationary shocks.
However, sustained crude price escalation has made continued price suppression financially difficult.
Opposition attacks Centre over timing.
Opposition parties have accused the Bharatiya Janata Party-led government of deliberately delaying fuel price revisions until after key state elections.
Notably, the first major increase on May 15 came shortly after the BJP expanded its political footprint by winning three out of five Assembly and Union Territory elections, including a landmark victory in West Bengal.
Private fuel retailers also raise rates
Private fuel retailers have also revised their pump prices in response to rising crude costs.
According to industry sources:
- Nayara Energy had earlier increased petrol prices by Rs 5 and diesel by Rs 3 per litre in March.
- Shell India reportedly raised petrol prices by Rs 7.41 per litre and diesel by as much as Rs 25 per litre from April 1.
- Jio-bp, however, has largely aligned its pricing with PSU fuel retailers.
Inflation concerns deepen
Economists warn that continued increases in petrol and diesel prices could have a cascading impact across the economy.
Higher diesel prices particularly affect freight transportation, agricultural operations, and supply chain logistics, while petrol hikes directly burden household budgets and commuters.
The repeated revisions are expected to further increase inflationary pressure at a time when consumers are already facing rising food, transport and utility costs.
Fuel prices had remained largely frozen since April 2022, except for a Rs 2-per-litre reduction announced in March 2024 ahead of the Lok Sabha elections.
