New Delhi: Petrol and diesel prices were raised by 87-91 paise per litre on Saturday, taking the cumulative increase in retail fuel rates to nearly Rs 5 a litre in under 10 days as state-owned firms passed on soaring international oil prices.
Alongside, compressed natural gas (CNG) prices were raised by Re 1 per kg, marking the third increase in recent days and taking the cumulative hike to Rs 4 per kg.
The latest revision pushed petrol prices higher by 87 paise per litre and diesel by up to 91 paise across the country, according to industry sources.
The back-to-back increases follow a prolonged freeze in retail fuel prices and come amid elevated crude oil prices in the global market, tightening refining margins, and a weaker rupee, which have sharply raised the cost of imports.
With the latest hike, petrol and diesel prices have risen to nearly Rs 5 a litre since the state-owned oil marketing companies on May 15 ended the hiatus in rate revision, stoking concerns over inflationary pressures and higher transportation costs across the economy.
Petrol and diesel prices were increased by Rs 3 per litre each on May 15 and 90 paise a litre on May 19.
CNG price in Delhi was increased to Rs 81.09 per kg from Rs 80.09, according to information posted by Indraprastha Gas Ltd on its website.
Rates have increased in all the neighbouring cities as well.
This is the third increase in CNG prices, and together with the earlier hikes of Rs 2 per kg on May 15 and Re 1 per kg on May 17, it takes the cumulative increase to Rs 4 per kg.
The back-to-back increases come after global crude oil prices surged more than 50 per cent since late February, following US-Israeli strikes on Iran and disruptions to shipments through the Strait of Hormuz, a critical global oil transit route.
Fuel retailers had kept pump prices low despite rising input costs, a move the government said was aimed at shielding consumers from inflation.
Opposition parties, however, accused the government of delaying price revisions until after key state elections.
The May 15 increase came after the ruling Bharatiya Janata Party (BJP) expanded its electoral footprint by winning three of five state and UT elections, including West Bengal.
Despite the hikes, fuel retailers continue to absorb significant losses.
Petroleum Ministry’s Joint Secretary Sujata Sharma had earlier this week stated that the May 15 increase reduced losses by about a fourth, but state-run oil firms were still losing around Rs 750 crore per day.
According to Crisil, oil marketing companies were losing about Rs 10 per litre on petrol and Rs 13 per litre on diesel even after the earlier hike.
Petrol and diesel prices are now at their highest levels since May 2022.
Rates had remained frozen since April 2022 except for a Rs 2-per-litre cut in March 2024 ahead of national elections.
The fuel price increases come amid broader efforts by the government to contain India’s oil import bill and reduce fuel consumption.
Prime Minister Narendra Modi, last week, urged citizens and government departments to conserve fuel, encourage remote working and reduce non-essential travel as elevated energy prices pressure foreign exchange reserves and threaten to widen the current account deficit.
Several state governments have already directed departments to curb travel and reduce office attendance.
Compressed natural gas (CNG) prices have also risen by Rs 3 per kg in two instalments within this period.
Industry officials said the latest revisions appeared calibrated to partially ease pressure on oil companies without triggering a sharp inflation shock, though they acknowledged that the increases would add to price pressures.
India’s retail inflation accelerated to 3.48 percent in April from 3.40 percent in March, while wholesale inflation climbed to a 42-month high of 8.3 percent, driven largely by higher fuel and energy costs.
