Petrol and diesel prices across India remained largely steady on Wednesday, a day after state-run oil marketing companies implemented another round of price hikes, raising rates by up to 90 paise per litre. The increase marked the second hike in less than a week amid elevated global crude oil prices.
Industry sources said petrol prices in the national capital were revised to ₹98.64 per litre from ₹97.77 earlier, while diesel rates rose to ₹91.58 per litre from ₹90.67.
Latest price updates issued by Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited showed limited movement in fuel prices across major cities, with variations driven by local value-added tax rates and freight costs.
Petrol and diesel prices were raised by around 90 paise per litre on 19 May across several metros, including Delhi, Mumbai, Bengaluru and Kolkata. The move followed an earlier ₹3-per-litre hike on 15 May, the first major fuel price increase in more than four years.
₹3-per-litre hike last week
Before the ₹3-per-litre hike, petrol in Delhi was retailing at ₹94.77 per litre while diesel was priced at ₹87.67 per litre.
According to Reuters, the recent fuel price hikes were aimed at partially offsetting losses suffered by public-sector fuel retailers due to elevated crude oil prices. However, the ₹3-per-litre increase was still lower than the level required for oil marketing companies to fully recover losses on fuel sales.
The rise in domestic fuel prices has been linked to volatility in global crude oil markets amid geopolitical tensions in West Asia. Reuters reported on Tuesday that Brent crude prices slipped 2.4% to $109.43 per barrel after US President Donald Trump paused a planned military strike against Iran, easing concerns over an immediate escalation in the region.
However, crude oil prices remain significantly higher than levels seen earlier this year. Reuters had earlier reported that Brent crude climbed to two-week highs amid fears of supply disruptions linked to the Iran conflict and uncertainty around shipping movements through the Strait of Hormuz.
Previous LiveMint reports, citing brokerage Emkay Global Financial Services, had said petrol and diesel prices could rise by another ₹18-20 per litre over the next three to six months if crude oil prices remain elevated.
