Fuel prices saw another sharp increase on Monday, May 25, with petrol becoming costlier by Rs 2.61 per litre and diesel by Rs 2.71 per litre. This marks the fourth fuel price hike in less than two weeks, adding further strain on household budgets and transportation expenses across the country.
The latest revision comes at a time when consumers are already struggling with rising living costs. Since fuel price adjustments resumed on May 15 after nearly four years of stability, the cumulative increase in petrol and diesel prices has approached Rs 7.5 per litre.
City-wise Price Updates
In Delhi, petrol prices rose from Rs 99.51 to Rs 102.12 per litre, while diesel increased from Rs 92.49 to Rs 95.20 per litre. Major cities have also witnessed significant increases.
In Mumbai, petrol is now priced at Rs 111.21 per litre and diesel at Rs 97.83 per litre. Kolkata recorded petrol prices at Rs 113.51 and diesel at Rs 99.82 per litre.
In Chennai, petrol prices increased by Rs 2.46 per litre, taking the rate to Rs 107.77 per litre, while diesel prices rose by Rs 2.57, pushing the cost to Rs 99.55 per litre. The latest hike has added to concerns among commuters and vehicle owners in the city, where transportation costs continue to rise.
Fuel rates continue to vary across states due to differences in local taxes and levies imposed by state governments.
Factors Behind Price Surge
The recent hikes are linked to rising global crude oil prices, which have surged by more than 50 per cent since late February. Geopolitical tensions, including US-Israeli strikes on Iran and disruptions in oil shipments through the Strait of Hormuz, a crucial route for global oil supplies, triggered the increase. A weakening rupee has also increased oil import costs for Indian fuel retailers.
Despite rising input costs during the early phase of the conflict, public sector oil companies initially kept retail fuel prices unchanged to shield consumers from inflationary pressures.
However, with continued pressure from global markets, revisions began on May 15, when petrol and diesel prices were increased by Rs 3 per litre. This was followed by further hikes on May 19 and May 23.
Private Retailer Response
Private fuel retailers have also revised prices alongside public sector companies. Nayara Energy had earlier raised petrol prices by Rs 5 per litre and diesel by Rs 3 per litre in March.
Shell increased petrol prices by Rs 7.41 per litre and diesel prices by up to Rs 25 per litre from April 1. Jio-BP has also aligned its fuel prices with those of public-sector retailers.
Consumer Impact and Future Outlook
The repeated rise in fuel prices has sparked concerns among citizens, especially daily commuters and transport operators. Many fear that continuous hikes will make travel increasingly expensive and place additional pressure on household finances.
As for the Iran conflict, its duration remains uncertain. If tensions continue or worsen, global crude oil prices may remain high, potentially leading to further fuel price increases in the coming days.
However, if diplomatic negotiations succeed and tensions ease, oil prices could stabilize, offering some relief to consumers. For now, uncertainty in global energy markets continues to keep fuel prices under pressure.
