Fuel Prices Hiked Again Within a Week: Petrol Up 87 Paise in Delhi

Second increase in less than a week; Kolkata sees sharpest rise of 96 paise for petrol. Oil companies cite rising crude prices and monthly losses of ₹30,000 crore.

For the second time in under a week, petrol and diesel rates have been hiked across major Indian cities. Effective Tuesday morning, prices climbed by nearly 90 paise per litre on average, adding to the burden on consumers already reeling from a ₹3 per litre increase last Friday.

According to revised price notifications from state-run oil marketing companies, the latest revision varies slightly by city. In the national capital, petrol became costlier by 87 paise, touching ₹98.64 per litre. Diesel followed suit with a 91 paise hike, now retailing at ₹91.58.

Kolkata records steepest jump

Eastern India felt the maximum pinch. Kolkata saw petrol prices rise by 96 paise – the sharpest among all metros – pushing the rate to ₹109.70 per litre. Diesel there climbed 94 paise to ₹96.07.

Mumbai, the country’s financial hub, wasn’t far behind. Petrol now costs ₹107.59 per litre (up 91 paise), while diesel rose 94 paise to ₹94.08. In Chennai, petrol crossed ₹104.49 after an 82 paise increase, and diesel touched ₹96.11.

Ripple effects on household budgets

The diesel hike is particularly worrying for common households. Transporters and logistics operators are expected to pass on the increased fuel cost directly to consumers.

Freight charges for trucks and tempos will rise, making vegetables, fruits and groceries from other states more expensive. Farmers running tractors and irrigation pumps will also face higher input costs, which could push up grain prices. Public transport users may see bus and auto-rickshaw fares going up in the coming days.

“Every diesel hike hits the last-mile delivery of essential items,” a Delhi-based transporter said, requesting anonymity. “We have no option but to revise freight rates.”

Why oil companies raised prices

Officials familiar with the matter attribute the back-to-back revisions to volatile crude oil prices in international markets. Benchmark rates, which hovered around $70 per barrel before recent West Asian geopolitical tensions escalated, have now surged past $100.

State-owned Indian Oil, Bharat Petroleum and Hindustan Petroleum were reportedly incurring combined losses of nearly ₹30,000 crore every month on sale of petrol, diesel and LPG, according to a recent statement by petroleum ministry joint secretary Sujata Sharma. The latest hikes are aimed at partially recouping those losses.

Stable for months, now two hikes in days

Fuel prices had remained unchanged since March 2024, when the government – just ahead of the Lok Sabha elections – provided relief by cutting rates by ₹2 per litre. That stability continued even as neighbouring countries like Pakistan, Nepal and Sri Lanka raised prices by 15-20% following the global crude surge.

Technically, oil companies are allowed to adjust rates daily based on a 15-day rolling average of international crude. But political sensitivity kept prices frozen for over a year. Tuesday’s revision signals a shift in that approach.

Modi’s call for conservation

On Sunday, Prime Minister Narendra Modi, speaking at an event in Telangana, urged citizens to use petroleum products judiciously, given the geopolitical situation in West Asia.

“Today’s need is to use petrol, gas and diesel very carefully,” the PM said. “We should use imported petroleum products only as needed. This will save foreign exchange and reduce the adverse effects of war.”

If crude prices remain elevated, further fuel hikes cannot be ruled out in the coming weeks.