NEW DELHI: Petrol and diesel prices were raised again on Saturday, marking the third increase in less than 10 days as global crude oil prices continue to climb amid the ongoing West Asia conflict and disruptions around the Strait of Hormuz.
Petrol prices were increased by up to 87 paise per litre, while diesel rates rose by as much as 91 paise per litre across major cities. In Delhi, petrol now costs Rs 99.51 per litre, up from Rs 98.64, while diesel prices increased from Rs 91.58 to Rs 92.49 per litre.
Global crude surge behind fuel price hike
The latest revision comes as India faces growing pressure from soaring international crude oil prices triggered by escalating tensions in West Asia and disruptions to shipping routes through the Strait of Hormuz, one of the world’s most crucial oil transit chokepoints.
Global crude prices, which were trading around $70-72 per barrel before the conflict intensified, had surged beyond $120 at one stage and are currently hovering in the $104-110 range. India’s crude oil basket has averaged nearly $113-114 per barrel in recent months, compared to roughly $69 per barrel in February.
As India imports nearly 90 per cent of its crude oil requirements, domestic fuel prices remain highly vulnerable to fluctuations in global markets.
Fuel prices were largely frozen since 2022
Retail petrol and diesel prices had remained mostly unchanged since April 2022, apart from a one-time Rs 2 per litre reduction announced in March 2024 ahead of the Lok Sabha elections.
State-run oil marketing companies — Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited — had suspended daily price revisions in 2022 to shield consumers from the global crude shock following Russia’s invasion of Ukraine.
However, officials say the current spike in crude oil prices has pushed public sector fuel retailers into severe losses.
Oil minister Hardeep Singh Puri recently said the three state-run fuel retailers were together losing nearly Rs 1,000 crore every day, while cumulative under-recoveries had climbed to almost Rs 1.98 lakh crore.
He also warned that if fuel prices were not revised despite elevated crude prices, losses nearing Rs 1 lakh crore in a single quarter could erase the companies’ annual earnings.
Reserve Bank of India governor Sanjay Malhotra had earlier indicated that further revisions in petrol and diesel prices may become necessary if the West Asia conflict continues for an extended period.
Government says fuel supplies remain stable
Despite the global turmoil, the government has maintained that India currently has sufficient fuel reserves to avoid immediate supply disruptions.
India has also increased naval deployment in the Persian Gulf region and is preparing to resume shipments through the Strait of Hormuz under naval protection to secure energy supplies from the Middle East.
Meanwhile, Prime Minister Narendra Modi has urged citizens to reduce fuel consumption and conserve foreign exchange amid rising oil import bills and mounting pressure on the rupee.
