Petrol prices in Delhi crossed ₹100 per litre after the fourth fuel hike in 11 days amid the Iran war.
Petrol was increased by ₹2.61 and diesel by ₹2.71 on Monday, adding to inflation concerns.
Rising crude prices and losses suffered by state-run oil companies forced the government-backed price revisions.
Petrol and diesel prices were hiked again on Monday, marking the fourth fuel price increase in just 11 days amid the ongoing Iran war and rising global crude oil uncertainty.
With the latest revision, petrol prices in Delhi have crossed the ₹100-per-litre mark. Petrol became costlier by ₹2.61 per litre, while diesel prices were increased by ₹2.71 per litre.
Following the hike, petrol in Delhi now costs ₹102.12 per litre, while diesel is priced at ₹95.20 per litre.
Pressure on Inflation
The latest increase is expected to further strain household budgets already impacted by inflation and rising living costs.
Higher diesel prices are likely to increase transportation and logistics costs, which could push up the prices of essential commodities such as milk, vegetables, bread and other daily-use items.
The hike also comes despite a fall in global crude prices. Brent crude reportedly dropped more than 5% on Monday, slipping below $100 per barrel for the first time this month.
Fourth Fuel Hike
The previous fuel price revision was announced on May 23, when petrol prices were increased by 87 paise and diesel by 91 paise.
CNG prices in Delhi were also raised by ₹1 per kilogram to ₹81.09 on the same day.
The recent fuel price increases have largely been linked to disruptions caused by the ongoing Iran conflict, which began on February 28.
Tensions around the Strait of Hormuz — one of the world’s most critical oil shipping routes — have significantly impacted global oil supply chains and crude prices over the past two months.
Why Raised Fuel Prices
India’s state-run oil marketing companies, Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL), had reportedly continued selling fuel at older prices despite rising crude procurement costs.
However, mounting losses eventually forced a price revision.
According to estimates, the three public sector oil companies were collectively losing more than ₹1,000 crore per day due to the widening gap between retail fuel prices and global crude costs.
Fuel prices in India had largely remained stable since April 2022. In fact, petrol and diesel prices were reduced by ₹2 per litre ahead of the 2024 Lok Sabha elections.
The latest revisions therefore mark the first major round of sustained fuel price hikes in nearly four years.
