Petrol, diesel price hike: The oil marketing companies on Friday raised petrol and diesel prices by Rs 3 per litre each across India, passing on part of the recent surge in global energy prices to consumers. As a result, petrol will now retail at Rs 97.77 per litre, while diesel will be priced at Rs 99.67 per litre in Delhi. The revision marks a notable move after weeks of volatile crude markets that have put pressure on domestic fuel pricing.

Following the petrol and diesel price hike, CNG rates have also gone up by Rs 2, as the blockade of the Strait of Hormuz persists due to the ongoing conflict in West Asia involving the US, Israel, and Iran.

State-owned oil firms had held retail fuel prices unchanged for 11 weeks despite a sharp rise in input costs, but on Friday passed through a portion of the increase- about one‑tenth of the hike that would fully reflect the surge in global energy rates since the West Asia conflict.

The three public refiners- Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL)- had suspended daily price revisions in April 2022 to shield consumers after international crude shot up following Russia’s invasion of Ukraine; they briefly cut petrol and diesel by Rs 2 per litre in March 2024 ahead of the Lok Sabha polls. The recent Rs 3 per litre rise comes after firms said operations had become financially unsustainable as input costs mounted.

Check ‘revised rates’ in other cities

Motor Spirit Petrol prices in Rs per litre:

  • Delhi- Rs 97.77 (+3.00)
  • Kolkata- Rs 108.74 (+3.29)
  • Mumbai- Rs 106.68 (+3.14)
  • Chennai- Rs 103.67 (+2.83)

High Speed Diesel prices in Rs per litre:

  • Delhi- Rs 90.67 (+3.00)
  • Kolkata- Rs 95.13 (+3.11)
  • Mumbai- Rs 93.14 (+3.11)
  • Chennai- Rs 95.25 (+2.86)

In Rajasthan’s Jaipur, petrol price rises to Rs 107.99 per litre, diesel price rises to Rs 93.26 per litre. Meanwhile, in Assam’s Guwahati, petrol price rises from Rs 98.19 per litre to Rs 101.20 per litre; diesel price rises from Rs 89.46 per litre to Rs 92.50 per litre. In Madhya Pradesh’s Bhopal, petrol price rises to Rs 109.82 per litre and diesel to Rs 94.98 per litre while in Telangana’s Hyderabad, petrol price rises to Rs 110.89 per litre and diesel to Rs 98.96 per litre.

IMAGE CREDITS: PTI

Impact of West Asia conflict on import costs

International crude prices have climbed sharply since the outbreak of the West Asia conflict, with India’s import basket averaging about USD 69 per barrel in February before the war and rising to roughly USD 113–114 per barrel in the months that followed- an increase of over 50 percent. The public refiners, which suffered heavy losses in the first half of 2022–23 before recovering when global rates eased, have therefore decided to partially pass on the burden to consumers while still absorbing a share to avoid a sudden retail shock.

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The increase reflects adjustments to align retail rates with rising international crude oil and product prices, as well as currency fluctuations. “With global benchmarks firming up and the rupee under pressure, companies have to recalibrate pump prices to bridge the import cost gap,” a senior official at one of the oil marketing companies said earlier. The companies, however, stressed that the move is a partial pass-through and that they continue to absorb a portion of the cost to reduce sudden shock to consumers.

The price rise is likely to add to inflationary pressures, particularly affecting transport costs and logistics. “Any hike in fuel prices feeds into the cost of essential goods and services- this will be felt by consumers across income groups,” said an economist at a New Delhi think-tank.

Commuters and transport operators voiced concern over rising operating expenses, while analysts noted that further international price spikes could prompt additional adjustments.

With fuel taxes forming a significant share of retail prices, calls are expected for the government to consider relief measures if global prices remain elevated. Consumers and industry groups will watch closely for any policy response, including adjustments in central or state levies. Meanwhile, oil companies indicated they will continue to monitor international markets and currency trends to decide future price moves.