Fuel Prices Raised Third Time This Month; Petrol, Diesel Up Another 90 Paise

Petrol and diesel prices were raised again on Saturday by around 90 paise per litre, marking the third increase this month as state-run oil marketing companies continued passing on higher global crude oil costs to consumers.

As per data from Indian Oil Corporation, petrol prices in Delhi increased by 87 paise to ₹99.51 per litre from ₹98.64 earlier, while diesel prices rose by 91 paise to ₹92.49 per litre from ₹91.58.

The latest revision follows a ₹3 per litre increase in petrol and diesel prices on May 15, the first broad-based fuel price hike in more than four years, and another increase of around 90 paise per litre on May 19.

The successive hikes come amid continued volatility in global oil markets following tensions in West Asia and concerns over disruptions in crude shipments through the Strait of Hormuz. Brent crude prices, which were around $72-73 per barrel before the US-Iran conflict escalated since February 28 and have risen above $100 per barrel.

Higher freight and insurance costs for crude cargoes have also added pressure on domestic fuel retailers.

Industry estimates suggest oil marketing companies continue to face under-recoveries despite the recent revisions, particularly on diesel and LPG sales. The gradual price increases indicate continued efforts by retailers to narrow losses while avoiding a sharp one-time pass-through to consumers.

Further increases in fuel prices are expected to feed into freight movement, manufacturing inputs, agriculture, and supply chains, particularly through diesel-linked costs.