Petrol, diesel and CNG prices rise again across India
Petrol and diesel prices were increased again on Saturday, taking the cumulative hike to nearly Rs 5 a litre in under 10 days. CNG prices also rose, amid soaring global crude oil prices, rising import costs and concerns over inflationary pressure
New Delhi: Petrol and diesel prices were raised by 87-91 paise per litre on Saturday, taking the cumulative increase in retail fuel rates to nearly Rs 5 a litre in under 10 days as state-owned firms passed on soaring international oil prices.
Alongside, compressed natural gas (CNG) prices were raised by Re 1 per kg, marking the third increase in recent days and taking the cumulative hike to Rs 4 per kg.
The latest revision pushed petrol prices higher by 87 paise per litre and diesel prices by up to 91 paise across the country, according to industry sources.
The back-to-back increases follow a prolonged freeze in retail fuel prices and come amid elevated crude oil prices in the global market, tightening refining margins and a weaker rupee, all of which have sharply raised import costs.
Petrol prices were increased by 87 paise in Delhi to Rs 99.51 per litre from Rs 98.64 earlier. Similarly, diesel prices were hiked by 91 paise to Rs 92.49 a litre from Rs 91.58 previously.
With the latest hike, petrol and diesel prices have risen by nearly Rs 5 a litre since the state-owned oil marketing companies on May 15 ended the hiatus in rate revisions, stoking concerns over inflationary pressures and higher transportation costs across the economy.
Petrol and diesel prices were increased by Rs 3 per litre each on May 15 and by 90 paise a litre on May 19.
CNG prices in Delhi were increased to Rs 81.09 per kg from Rs 80.09, according to information posted by Indraprastha Gas Limited on its website.
Rates have increased in neighbouring cities as well.
This is the third increase in CNG prices and, together with the earlier hikes of Rs 2 per kg on May 15 and Re 1 per kg on May 17, it takes the cumulative increase to Rs 4 per kg.
On all three occasions, private fuel retailers like Nayara Energy swiftly matched the price increases announced by their state-owned rivals, raising petrol and diesel rates by a similar amount.
The latest increases came on top of hikes implemented earlier by private retailers ahead of the first fuel price revision on May 15 by state-run oil companies.
Nayara Energy had raised petrol and diesel prices by Rs 5 and Rs 3 per litre, respectively, in March, while Shell plc increased petrol prices by Rs 7.41 a litre and diesel prices by as much as Rs 25 per litre from April 1.
Jio-bp, the fuel retailing joint venture of Reliance Industries and BP, has, however, revised rates at its pumps in line with PSU retailers.
After Saturday’s increase, petrol at PSU pumps in Mumbai now costs Rs 108.49 per litre and diesel Rs 95.02, while Kolkata prices rose to Rs 110.64 and Rs 97.02, respectively. In Chennai, petrol is priced at Rs 105.31 and diesel at Rs 96.98.
Prices vary across states due to local taxes.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) together control 90 per cent of India’s fuel market.
The back-to-back increases come after global crude oil prices surged by more than 50 per cent since late February, following US-Israeli strikes on Iran and disruptions to shipments through the Strait of Hormuz, a critical global oil transit route.
Fuel retailers had kept pump prices low despite rising input costs, a move the government said was aimed at shielding consumers from inflation.
Opposition parties, however, accused the government of delaying price revisions until after key state elections.
The May 15 increase came after the ruling Bharatiya Janata Party (BJP) expanded its electoral footprint by winning three of five state and Union Territory elections, including West Bengal.
Despite the hikes, fuel retailers continue to absorb significant losses.
Petroleum Ministry Joint Secretary Sujata Sharma had earlier this week stated that the May 15 increase reduced losses by about one-fourth, but state-run oil firms were still losing around Rs 750 crore per day.
According to CRISIL, oil marketing companies were losing about Rs 10 per litre on petrol and Rs 13 per litre on diesel even after the earlier hike.
Petrol and diesel prices are now at their highest levels since May 2022.
Rates had remained frozen since April 2022 except for a Rs 2-per-litre cut in March 2024 ahead of the national elections.
The fuel price increases come amid broader efforts by the government to contain India’s oil import bill and reduce fuel consumption.
Prime Minister Narendra Modi last week urged citizens and government departments to conserve fuel, encourage remote working and reduce non-essential travel as elevated energy prices pressure foreign exchange reserves and threaten to widen the current account deficit.
Several state governments have already directed departments to curb travel and reduce office attendance.
Compressed natural gas (CNG) prices have also risen by Rs 3 per kg in two instalments during this period.
Industry officials said the latest revisions appeared calibrated to partially ease pressure on oil companies without triggering a sharp inflation shock, though they acknowledged that the increases would add to price pressures.
India’s retail inflation accelerated to 3.48 per cent in April from 3.40 per cent in March, while wholesale inflation climbed to a 42-month high of 8.3 per cent, driven largely by higher fuel and energy costs.
