Goa Khabar : State-run oil marketing companies raised petrol and diesel prices by approximately 90 paise per litre on Tuesday. This marks the second increase in fuel rates in less than a week, following the end of a nearly four-year freeze on price revisions.
According to industry sources, the latest hike has pushed petrol prices in New Delhi to Rs 98.64 per litre, up from Rs 97.77, while diesel rates have risen to Rs 91.58 per litre from Rs 90.67. Final retail rates continue to vary across different states due to local variations in value-added tax. Following Tuesday’s adjustment, retail fuel prices in the country have hit their highest levels since May 2022.
This round of revisions began on Friday when petrol and diesel prices were raised by Rs 3 per litre. That adjustment was the first in over four years, driven by surging global crude prices following the outbreak of the Iran war. State-run fuel retailers were forced to pass on a portion of their mounting losses after holding rates steady for months through crucial state elections.
The pressure on energy prices has extended to gaseous fuels as well. On May 15, compressed natural gas (CNG) prices were raised by Rs 2 per kg in major cities, including Delhi and Mumbai, followed by another increase of Re 1 per kg on Sunday.
Global crude prices have surged by more than 50 per cent since the US-Israeli strikes on Iran on February 28 and Tehran’s subsequent retaliation. The conflict has severely disrupted shipping flows through the Strait of Hormuz, which serves as a vital artery for global oil shipments.
Despite the prolonged global surge, domestic retail fuel rates had been kept frozen at two-year-old levels. The government maintained that this freeze was an effort to shield price-sensitive consumers from escalating global energy costs. However, opposition parties alleged political motives, pointing out that the freeze coincided with assembly elections in key states. The initial Rs 3 per litre hike on Friday was implemented immediately after the completion of the polls, which saw the ruling Bharatiya Janata Party expand its influence by winning three of the five states, including West Bengal.
Industry experts note that the recent price hikes still fall short of bridging the gap between domestic retail rates and international costs. The Rs 3 a litre increase on Friday covered only about a fifth of the total hike required to align rates with actual costs. On Monday, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, stated that while the May 15 hike had cut oil company losses by a fourth, state-run fuel retailers were still incurring losses of approximately Rs 750 crore per day.
