New Delhi: Petrol and diesel prices were raised by about 90 paise per litre on Tuesday – the second increase in less than a week – as state-run fuel retailers moved to narrow mounting losses triggered by a sharp surge in global crude oil prices following the Iran conflict.
The latest increase follows a Rs 3-per-litre hike on Friday – the first fuel price revision in more than four years.
The back-to-back increases come after global crude oil prices surged more than 50 percent 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.
Friday’s 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 said on Monday 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.
Prices vary across states due to local taxes.
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.
Opposition Congress has sharpened its attack on the government over rising fuel prices and inflation, warning that the latest increases were only the start of broader price pressures facing consumers.
“Abhi toh ye angdai hai, aage aur mehangai hai” (“This is just the beginning, more inflation lies ahead”), the party said in a post on X attaching a news clip of petrol and diesel prices being raised for the second time in less than a week.
