This marks the third fuel price hike this month. Earlier this week, petrol and diesel prices were raised by 90 paise per litre, following another increase of Rs 3 per litre a few days earlier. Before these revisions, state-run oil marketing companies (OMCs) had claimed they were bearing losses of nearly Rs 1,000 crore per month, according to the Centre.
Following the hike, diesel in Delhi now costs Rs 92.49 per litre, while petrol is priced at Rs 99.51 per litre.
Latest Petrol prices in four major cities
- Delhi: Rs 99.51 (+0.87)
- Kolkata: Rs 110.64 (+0.94)
- Mumbai: Rs 108.49 (+0.90)
- Chennai: Rs 105.31 (+0.82)
Latest diesel prices in four major cities
- Delhi: Rs 92.49 (+0.91)
- Kolkata: Rs 97.02 (+0.95)
- Mumbai: Rs 95.02 (+0.94)
- Chennai: Rs 96.98 (+0.87)
What’s driving the surge?
The latest hike in petrol and diesel prices comes amid a sharp rise in international crude oil prices due to the ongoing conflict in the Middle East. India imports nearly 85% of its crude oil requirements, making domestic fuel prices highly sensitive to fluctuations in global oil markets.
On Friday, Brent crude futures rose $1.66, or 1.6%, to $104.24 a barrel by 0405 GMT, while U.S. West Texas Intermediate futures were up $1.11, or 1.2%, at $97.46. On a weekly basis, Brent was 4.6% lower and WTI was down 7.6%, with prices fluctuating sharply as expectations for a Iran peace deal shifted.
Over the past two years, India has relied heavily on discounted Russian crude to keep import costs under control. However, with global crude prices toppping USD 100 per barrel, state-run oil companies have started revising domestic fuel prices after keeping them largely unchanged for months.