Why Petrol Price Increasing in India Again? Fuel Rates Jump Rs 7.5 in 2 Weeks

Petrol, Diesel Prices Rise Again: Fuel Costs Jump Rs 7.5 in Less Than Two Weeks

Indian consumers are once again feeling the pressure of rising fuel prices as petrol and diesel rates have been increased for the fourth time in under two weeks. State-run oil marketing companies (OMCs) announced another sharp hike, pushing fuel prices significantly higher across major cities.

With this latest revision, petrol prices have gone up by Rs 2.61 per litre, while diesel prices have increased by Rs 2.71 per litre. In total, fuel prices have surged by nearly Rs 7.5 per litre within just 14 days, raising concerns among commuters, transport operators, and businesses alike.

Why Are Fuel Prices Increasing?

The recent hikes are mainly linked to the ongoing tensions in West Asia, particularly the conflict involving the United States and Iran. The situation has created uncertainty in global oil markets and affected crude oil supply routes, especially around the Strait of Hormuz — one of the world’s most important oil transit points.

Global crude oil prices have become highly volatile due to fears of supply disruptions. Whenever hopes of peace talks emerge, oil prices soften slightly, but renewed tensions quickly push prices back up.

Speaking about the situation, ONGC Director (Exploration) Sushma Rawat explained that the uncertainty in the region has directly impacted international crude prices. She also noted that the Indian government had tried to shield consumers from immediate price increases for over two months despite rising global costs.

According to her, oil marketing companies were reportedly facing losses of nearly Rs 1,000 crore per day while keeping fuel prices stable.

Petrol and Diesel Prices in Major Cities

Here’s how the latest fuel price revision has impacted major Indian cities:

Delhi

• Petrol: Rs 102.12 per litre (+Rs 2.61)

• Diesel: Rs 95.20 per litre (+Rs 2.71)

Kolkata

• Petrol: Rs 113.51 per litre (+Rs 2.87)

• Diesel: Rs 99.82 per litre (+Rs 2.80)

Mumbai

• Petrol: Rs 111.21 per litre (+Rs 2.72)

• Diesel: Rs 97.83 per litre (+Rs 2.81)

Chennai

• Petrol: Rs 107.77 per litre (+Rs 2.46)

• Diesel: Rs 99.55 per litre (+Rs 2.57)

Impact on Common People

The repeated rise in fuel prices is expected to affect household budgets across the country. Higher petrol and diesel rates usually lead to increased transportation and logistics costs, which eventually impact the prices of everyday goods, including vegetables, groceries, and other essential commodities.

For daily commuters, cab drivers, delivery workers, and transport businesses, the increasing fuel expenses are becoming difficult to manage. Experts also warn that continued hikes may contribute to inflation in the coming weeks.

Fuel Prices Were Stable for a Long Time

Before this month, fuel prices in India had remained mostly unchanged since April 2022. The only major relief came in March 2024, when petrol and diesel prices were reduced by Rs 2 per litre ahead of the Lok Sabha elections.

However, on May 16, fuel prices suddenly increased by Rs 3 per litre, surprising many consumers. Since then, rates have continued to rise steadily.

Global Oil Prices Show Slight Relief

Interestingly, international oil prices saw a sharp decline of more than five percent recently amid hopes of a possible peace agreement between the US and Iran.

North Sea Brent Crude dropped to around USD 98 per barrel, while West Texas Intermediate (WTI) crude also fell below USD 92 per barrel before recovering slightly later during trading.

Despite this temporary relief in global markets, fuel prices in India remain high due to previous losses faced by oil companies and ongoing uncertainty in crude supply.