Petrol and diesel prices have risen by 87-91 paise per litre in the latest revision, taking the total increase to nearly ₹5 per litre in less than 10 days. The back-to-back hikes come after a long freeze in retail fuel rates and reflect rising global crude oil costs, currency pressure, and tightening refining margins.
In the latest revision, petrol prices were increased by 87 paise per litre and diesel by up to 91 paise across most markets, according to industry sources. In Delhi, petrol now costs ₹99.51 per litre, up from ₹98.64, while diesel has risen to ₹92.49 from ₹91.58.
Since May 15, fuel prices have been revised three times — a ₹3 per litre hike, followed by a 90-paise increase, and now another round of adjustments — pushing overall retail rates up by nearly ₹5 per litre. State-owned oil companies said the changes reflect elevated international crude prices and earlier cost pressures that had not been fully passed on to consumers.
Private fuel retailers such as Nayara Energy and Jio-BP have largely mirrored these revisions, while some companies had already increased pump prices ahead of the PSU-led hikes.
No nationwide fuel shortage, says IndianOil
Amid reports of queues and localized fuel shortages at some outlets, IndianOil Corporation (IOC) has clarified that there is no nationwide shortage of petrol or diesel. It said the situation is “highly localised and temporary,” driven by demand-supply mismatches at select retail outlets.
IOC, India’s largest fuel retailer with over 42,000 petrol pumps, said only a small number of outlets have faced disruptions. The company attributed the spike in demand to seasonal diesel consumption during the harvesting period, a shift in customers from private retailers, and higher institutional demand at PSU pumps due to pricing differences.
Petrol sales rose about 14% year-on-year in early May, while diesel sales increased nearly 18%, indicating strong and sustained demand.
The company also urged consumers not to panic-buy, stating that adequate fuel stocks are available nationwide and supply systems remain stable.
Global factors behind the rise
The recent surge in fuel prices is linked to global crude oil climbing more than 50% since late February due to geopolitical tensions and supply disruptions. A weaker rupee has further increased import costs for Indian refiners.
Oil marketing companies had earlier absorbed losses despite rising crude prices, with estimates suggesting under-recoveries of ₹10 per litre on petrol and ₹13 per litre on diesel even after partial price adjustments.
Prices are now at their highest levels since May 2022, after remaining largely frozen for nearly two years except for a brief cut ahead of elections.
Inflation and broader impact
The increase in fuel prices is expected to add pressure on transportation costs, logistics, and essential goods. India’s retail inflation rose to 3.48% in April, while wholesale inflation surged to a 42-month high of 8.3%, driven partly by energy costs.
Officials have also indicated that the recent price adjustments are aimed at reducing losses for state-run oil companies, which continue to face significant daily under-recoveries despite the hikes.
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