Petrol and diesel prices have been increased again across India, marking the second fuel price hike within a week as rising global crude oil prices continue to pressure domestic fuel retailers.
According to reports, petrol and diesel prices were raised by around 90 paise per litre on May 19. In Delhi, petrol prices increased to ₹98.64 per litre from ₹97.77, while diesel prices rose to ₹91.58 per litre from ₹90.67.
Second Hike Within Days
The latest increase comes just days after state-run oil marketing companies raised petrol and diesel prices by ₹3 per litre on May 15 — the first major fuel price hike in nearly four years.
The earlier increase had already pushed fuel prices sharply higher across major Indian cities including Delhi, Mumbai, Bengaluru, Chennai, and Kolkata.
Global Crude Oil Prices Behind Increase
Reports said the fuel price hikes are linked to surging international crude oil prices following escalating tensions in West Asia and disruptions around the Strait of Hormuz. Global crude prices had recently crossed $120 per barrel before easing slightly.
India, which imports a large share of its crude oil requirements, remains highly vulnerable to global oil market volatility. Rising import costs have increased pressure on oil marketing companies and the government.
Oil Companies Facing Financial Pressure
Industry analysts said the recent hikes are still insufficient to fully offset losses faced by state-run fuel retailers. Reports estimated that oil marketing companies may still be incurring daily losses of around ₹1,380 crore due to elevated crude prices and controlled retail pricing.
Analysts also suggested that additional fuel price increases may be required if global crude prices remain elevated for an extended period.
Inflation And Demand Concerns Rise
Economists said rising fuel prices could increase transportation costs and contribute to inflationary pressure across sectors including logistics, food supply, aviation, and manufacturing.
At the same time, fuel conservation measures and higher retail prices are expected to impact petrol and diesel demand growth in the coming months.
Government Pushes Fuel Conservation Measures
Amid rising energy costs, the government has also encouraged fuel-saving measures. Prime Minister Narendra Modi recently appealed for reduced fuel consumption through work-from-home practices, virtual meetings, reduced travel, and conservation efforts.
Several states and public-sector institutions have also begun discussing travel restrictions, virtual operations, and energy-saving measures to reduce fuel consumption.
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