Fuel prices in India have risen once again, with state-run oil marketing companies increasing petrol and diesel rates for the second time in less than a week amid soaring global crude oil prices.
On Tuesday, petrol prices were increased by 86 paise per litre, while diesel prices went up by 83 paise per litre. In Delhi, petrol now costs Rs 98.64 per litre and diesel has climbed to Rs 91.58 per litre — the highest fuel prices recorded since May 2022.
Second Fuel Price Hike in One Week
The latest increase comes just days after oil companies raised petrol and diesel prices by Rs 3 per litre on May 15. That hike marked the first major fuel price revision in more than four years.
According to industry experts, the recent surge is directly linked to rising global crude oil prices caused by escalating tensions in West Asia, especially the ongoing US-Iran conflict.
Global crude prices have reportedly jumped by more than 50 percent this year, creating pressure on fuel retailers across several countries, including India.
Why Are Petrol and Diesel Prices Rising?
One of the biggest reasons behind the price surge is disruption in oil supply routes through the Strait of Hormuz, one of the world’s most important oil shipping channels.
The conflict in the region has created uncertainty in global energy markets, increasing transportation costs and pushing crude oil prices sharply higher.
As a result, India’s public sector oil companies — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) — are facing heavy financial pressure.
Industry estimates suggest these three companies could collectively report losses of nearly Rs 1.2 lakh crore in the first quarter of FY27 if crude prices remain elevated.
CNG Prices Also Increased
The fuel price pressure is not limited to petrol and diesel.
India’s leading city gas distributor, Indraprastha Gas Limited (IGL), recently increased compressed natural gas (CNG) prices by Re 1 per kg across its network. This was the second CNG price hike within 48 hours.
Earlier this month, CNG prices had already been raised by Rs 2 per kg amid the same global oil market volatility.
Latest Petrol and Diesel Prices in Delhi
Following the latest revision:
- Petrol price in Delhi: Rs 98.64 per litre
- Diesel price in Delhi: Rs 91.58 per litre
Fuel prices may vary across states depending on local taxes and transportation costs.
Impact on Consumers
The repeated rise in fuel prices is expected to affect transportation costs, food prices and household expenses across India.
Higher diesel prices could also impact logistics, agriculture and public transport sectors, while increasing petrol costs are likely to add pressure on daily commuters.
Economists warn that if global crude prices continue rising, inflationary pressure may increase further in the coming months.
