Petrol and diesel prices were raised by 90 paise per litre on Tuesday, marking the second hike in under a week. In the national capital, petrol prices increased from ₹97.77 to ₹98.64 per litre, while diesel rates went up from ₹90.67 to ₹91.58 per litre, according to industry sources.
This is the second rate increase in less than a week. Prices were hiked by ₹3 a litre on Friday.
In Delhi, petrol now retails at ₹98.64 per litre, up by 87 paise, while diesel is priced at ₹91.58 per litre, higher by 91 paise.
Mumbai saw petrol rise by 91 paise to ₹107.59 per litre and diesel by 94 paise to ₹94.08 per litre.
Kolkata recorded the steepest hike in petrol at 96 paise to ₹109.70 per litre, while diesel prices rose by 94 paise to ₹96.07 per litre.
In Chennai, petrol prices rose by 82 paise to ₹104.49 per litre, and diesel by 86 paise to ₹96.11 per litre.
Crude oil surge raises inflation concerns
According to analysts cited by Reuters, a sustained rise in crude oil prices could have a cascading impact on retail inflation, transportation expenses and overall household budgets.
The latest revision comes amid elevated global crude oil prices driven by ongoing geopolitical tensions in West Asia and supply concerns around the Strait of Hormuz, a key global oil transit route. Brent crude prices have remained above the $110 per barrel mark in recent sessions, increasing pressure on fuel retailers and India’s import bill, according to reports by The Economic Times.
Despite last week’s ₹3 per litre hike, state-run oil marketing companies (OMCs) continue to face significant under-recoveries on the sale of petrol, diesel and LPG. According to estimates cited by The Times of India, OMCs are currently losing around ₹750 crore daily on fuel sales.
Industry experts and brokerage analysts cited by The Indian Express said the recent hikes may only partially offset losses incurred by fuel retailers, with some reports suggesting OMCs were earlier losing nearly ₹14 per litre on petrol and over ₹40 per litre on diesel amid the sharp surge in international crude prices, according to The Indian Express.
Indian Oil Corporation director Arvind Kumar recently termed the increase a “very small rise” and said Indian refineries are operating at more than 100% capacity to ensure uninterrupted fuel supply across the country, The Times of India reported.