Fuel Prices Raised Fourth Time This Month; Petrol, Diesel Up nearly ₹7.5/Litre Since May 15

Petrol and diesel prices were raised again on Monday, marking the fourth increase this month, as state-run oil marketing companies continued passing on higher global crude oil costs amid persistent volatility in energy markets.

In Delhi, petrol prices rose by ₹2.61 per litre to ₹102.12, while diesel prices increased by ₹2.71 per litre to ₹95.20, according to data from Indian Oil Corporation.

The latest increase follows three earlier revisions this month — a ₹3 per litre hike each on May 15, followed by increases of around 90 paise per litre on May 19 and May 23.

With the latest revision, petrol prices in Delhi have risen cumulatively by ₹7.35 per litre since May 15, while diesel prices have increased by ₹7.53 per litre over the same period.

The hikes come as domestic fuel retailers attempt to narrow under-recoveries after a sharp rise in global crude oil prices and elevated freight and insurance costs linked to tensions in West Asia and disruptions around the Strait of Hormuz.

Brent crude prices, which were trading around $70 per barrel before the escalation of the Iran conflict earlier this year, have remained elevated to around $100 per barrel  amid concerns over supply disruptions and shipping risks in the region.

Industry estimates suggest oil marketing companies continue to face losses on diesel and LPG sales despite the recent price hikes. The gradual revisions indicate an attempt to spread the pass-through over multiple rounds instead of a single sharp adjustment.

The repeated increases are expected to raise transportation and logistics costs across sectors, particularly through diesel-linked supply chains. Economists have previously estimated that the initial ₹3 per litre hike announced on May 15 alone could add around 12 basis points to headline CPI inflation through direct pass-through effects.

Further fuel price increases are likely to feed into freight movement, agriculture, manufacturing inputs, and retail goods prices if global crude prices remain elevated in the coming weeks.