New Delhi (Rajeev Sharma): Indian consumers woke up to another increase in fuel prices on Monday as state-owned oil marketing companies announced a fresh revision in petrol and diesel rates, marking the fourth hike within a span of just ten days. The latest move comes against the backdrop of continuing unrest in West Asia and persistent uncertainty in global crude supply chains linked to the Iran crisis.
Under the revised rates, petrol prices have gone up by Rs 2.61 per litre, while diesel has become costlier by Rs 2.71 per litre. In the national capital, petrol is now being sold at Rs 102.12 per litre, while diesel has reached Rs 95.20 per litre.
This follows another upward revision on May 23, when petrol prices were increased by 87 paise per litre and diesel by 91 paise per litre. During the same revision, CNG prices in Delhi were also raised by Re 1 per kilogram, pushing the retail price to Rs 81.09 per kg.
The impact of the latest revision was felt across metro cities.
In Mumbai, petrol prices rose to Rs 111.21 per litre, while diesel touched Rs 97.83 per litre. Kolkata recorded petrol prices of Rs 113.51 per litre and diesel at Rs 99.82 per litre, while in Chennai, petrol was revised to Rs 107.77 per litre and diesel to Rs 99.55 per litre.
The repeated hikes are being attributed largely to turbulence in the global energy market caused by the prolonged Iran-related conflict. Market observers say concerns surrounding shipping activity through the Strait of Hormuz, a vital oil transit route, have unsettled international crude trade and contributed to pricing instability.
Oil companies had earlier indicated that they were absorbing substantial losses due to rising procurement costs, with under-recoveries estimated at nearly Rs 1,000 crore every month before recent revisions were introduced.
What has surprised many analysts, however, is that the latest domestic price increase has come despite a decline in global crude benchmarks. Brent crude recently slipped below the $100-per-barrel mark after falling more than five per cent, suggesting that local fuel pricing may also be factoring in previous financial losses and inventory replacement costs.
Economists warn that rising diesel prices could have a cascading effect on the broader economy. Since diesel powers a large share of India’s transport and freight movement, higher fuel costs are expected to increase logistics expenses, potentially pushing up prices of food items, daily essentials and other consumer goods in the coming weeks.
