India Hikes Petrol And Diesel Prices By 90 Paise; Second Fuel Price Hike This Week

India raised petrol and diesel prices by nearly 90 paise per litre on 19 May, the second fuel price increase in less than a week, as state-run oil marketing companies continued to absorb heavy losses from surging global crude prices following the West Asia conflict.

Petrol in New Delhi rose to ₹98.64 per litre from ₹97.77, while diesel climbed to ₹91.58 from ₹90.67. The increase follows a ₹3 per litre hike on 15 May, the first in more than four years, which the government said cut daily losses by a quarter.

Despite that reduction, oil companies were still losing around ₹750 crore per day as of Monday, according to Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas.

Petrol Prices Across Metro Cities

• Delhi: ₹98.64 per litre, up ₹0.87

• Mumbai: ₹107.59 per litre, up ₹0.91

• Kolkata: ₹109.70 per litre, up ₹0.96

• Chennai: ₹104.49 per litre, up ₹0.82

Diesel Prices Across Metro Cities

• Delhi: ₹91.58 per litre, up ₹0.91

• Mumbai: ₹94.08 per litre, up ₹0.94

• Kolkata: ₹96.07 per litre, up ₹0.94

• Chennai: ₹96.11 per litre, up ₹0.86

Why Prices Are Rising Now

Retail fuel prices had been frozen since April 2022, when they were last hiked. The only exception was a one-time ₹2 per litre cut in March 2024 ahead of the Lok Sabha elections.

Public sector oil marketing companies like Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, had suspended daily price revisions in 2022 to protect consumers from global crude price shocks following Russia's invasion of Ukraine.

That policy held until the West Asia conflict changed the math entirely. Global crude prices have surged more than 50% since US-Israeli strikes on Iran on 28 February and Tehran's retaliation disrupted flows through the Strait of Hormuz.

India's crude basket averaged $69 per barrel in February before climbing to nearly $113 to $114 per barrel in recent months. India imports nearly 90% of its crude requirements, leaving domestic fuel pricing highly exposed to international market movements.

CNG Also Hit

Compressed natural gas (CNG) prices were raised by ₹2 per kg on 15 May across cities, followed by a further ₹1 per kg hike on 17 May.

In Delhi-NCR, CNG now costs ₹79.09 per kg. Mahanagar Gas Limited also raised CNG prices in the Mumbai region.

Government Says No Shortage

Despite the price increases and supply chain disruptions, the centre has maintained there is no fuel shortage and no rationing is planned. Oil Secretary Neeraj Mittal said at the CII Annual Business Summit that supplies are sufficient and there is no need for panic. Officials said India currently holds around 60 days of fuel stocks and approximately 45 days of liquefied petroleum gas inventories.

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Inflation Impact

The fuel hikes are feeding into broader price pressures. Retail inflation measured by the Consumer Price Index rose to 3.48% in April from 3.40% in March. Wholesale price inflation surged to 8.3%, a 42-month high, driven by sharp increases in fuel and energy costs.

Sources:

Times of India

The Business Standard