Fuel Prices Hiked Third Time in 10 Days Across India

State-owned oil marketing companies announced another round of fuel price increases on Saturday, marking the third revision in less than ten days. Petrol prices rose by 87 paise per litre and diesel by 91 paise per litre in the national capital.

Following the revision, petrol now costs ₹99.51 per litre in Delhi, up from ₹98.64. Diesel is priced at ₹92.49 per litre, compared to ₹91.58 earlier. Compressed Natural Gas (CNG) prices were also increased by ₹1 per kg, taking the rate to ₹81.09 per kg in Delhi.

Sharpest Impact in Rajasthan

In Jaipur, the hike was marginally higher. Petrol became costlier by 93 paise, reaching ₹109.84 per litre, while diesel increased by 92 paise to ₹95.06 per litre. This marks the third consecutive fuel price adjustment in Rajasthan within nine days.

The latest increases come as international crude oil prices continue to remain elevated due to the ongoing conflict in West Asia. Sources in the petroleum sector said oil companies have begun passing on the higher costs in a calibrated manner after absorbing losses for several weeks.

Timeline of Recent Increases

Since May 15, fuel rates have climbed steadily. The first hike of ₹3 per litre was followed by a 90 paise increase on May 19. With Saturday’s revision, the cumulative rise in petrol and diesel prices has touched nearly ₹5 per litre in just over a week.

Industry observers noted that before the West Asia tensions escalated, crude oil was hovering around $70 per barrel. Prices have since crossed $100 per barrel, putting significant pressure on Indian oil companies.

Losses Prompted Action

According to government officials, public sector oil companies including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum were incurring monthly losses of around ₹30,000 crore on petrol, diesel, and LPG sales. The companies had been absorbing the impact for some time before initiating daily price revisions.

The Centre had earlier reduced special excise duty on petrol and diesel by ₹10 per litre each to cushion consumers. Despite this relief, rising global prices have made further adjustments necessary.

Ripple Effect on Everyday Costs

The repeated fuel price hikes are expected to have a cascading impact on multiple sectors. Transportation and freight costs are likely to rise, which could make vegetables, fruits, and other essential commodities more expensive, especially those transported from distant states.

Farmers may also face higher input costs as running tractors, pump sets, and other diesel-powered equipment becomes costlier. Public transport operators have indicated that bus and auto fares, including school bus charges, could see upward revisions in the coming days.

How Fuel Prices Are Determined

Fuel pricing in India follows a dynamic daily revision system, with rates updated at 6 AM every day. The final consumer price includes several components: international crude oil cost, refining expenses, central excise duty, dealer commission, and state-level Value Added Tax (VAT).

Since states levy different VAT rates, fuel prices vary significantly across cities. Delhi generally has lower rates compared to many other states due to lower local taxes.

Outlook Remains Uncertain

Petroleum Ministry officials have maintained that prices are being adjusted gradually to avoid sudden shocks to consumers. However, if crude oil prices remain above $100 per barrel for an extended period, further increases cannot be ruled out.

Consumers in major cities are already feeling the pinch, with many expressing concern over the timing of these hikes amid rising living costs. Market experts suggest that any de-escalation in West Asia tensions could help stabilise global crude prices and bring some relief at the pump.