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CHANDIGARH: Fuel prices continued their upward march on Saturday as petrol and diesel rates were increased by up to 91 paise per litre, marking the third hike in less than 10 days amid rising global crude oil prices linked to the ongoing West Asia crisis.
According to revised rates issued by state-owned oil marketing companies, petrol prices in New Delhi increased by 87 paise per litre, from Rs 98.64 to Rs 99.51.
Diesel prices in the national capital also rose by 91 paise, from Rs 91.58 to Rs 92.49 per litre.
Third hike since May 15
This is the third increase in fuel prices since May 15, when public sector oil companies resumed calibrated price revisions after a prolonged freeze.
Earlier, petrol and diesel prices were increased by Rs 3 per litre on May 15, followed by another hike of around 90 paise per litre on May 19.
With Saturday’s revision, fuel prices have cumulatively risen by nearly Rs 5 per litre within just over a week.
Rising crude oil prices are behind revisions
The latest hike is attributed to the sharp rise in international crude oil prices, driven by escalating geopolitical tensions and disruptions to global energy supply routes stemming from the West Asia conflict.
Industry officials said state-owned oil retailers had been under increasing pressure because of higher input costs and narrowing margins.
International crude prices have surged in recent weeks, prompting oil companies to pass the burden on to domestic consumers gradually.
Oil companies resume calibrated increases
Officials indicated that oil marketing companies , including Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited , have adopted a phased approach to passing onted crude prices to retail fuel rates.
Fuel prices in India had largely remained frozen since April 2022 despite fluctuations in global crude prices following the Russia-Ukraine War.
The recent revisions indicate a shift toward more regular pass-through of international market volatility.
Impact on inflation and consumers
The continued increase in fuel prices is expected to place additional pressure on household budgets and transportation costs.
Higher diesel prices are likely to impact freight movement, logistics and agricultural operations, while petrol price hikes directly affect daily commuters and private vehicle owners.
Economists warn that sustained increases in fuel prices may also contribute to higher retail inflation by raising transportation and supply-chain costs across sectors.
West Asia conflict weighs on the Indian economy.
India is currently facing mounting economic pressure due to the prolonged crisis in West Asia, which has disrupted global oil markets and increased the country’s import bill.
The Centre has already expressed concern over the impact of rising energy prices on inflation, the current account deficit and the rupee.
Prime Minister Narendra Modi had recently appealed to citizens to conserve fuel and adopt austerity measures to help reduce pressure on foreign exchange reserves amid the geopolitical crisis.
Further fuel price revisions are likely to depend on the trajectory of global crude oil prices and developments in the situation in West Asia.
