New Delhi: Fuel rates climbed once again across the country on Tuesday, with petrol and diesel prices witnessing another upward revision less than a week after the first increase ended a prolonged freeze on retail rates.
The latest hike of around 90 paise per litre (Diesel prices increased by 91 paise per litre and petrol by 87 paise per litre) has pushed petrol prices in the national capital to Rs 98.64 per litre, while diesel now costs Rs 91.58 per litre.
This comes just days after state-run oil marketing companies raised fuel prices by ₹3 per litre on Friday, the first such revision in over four years.
The twin hikes reflect growing pressure on domestic fuel retailers as international crude oil prices continue to remain elevated amid prolonged geopolitical tensions in West Asia.
The recent conflict involving Iran has sharply disrupted global oil flows through the Strait of Hormuz, one of the world’s most crucial crude transit routes, causing international benchmark prices to jump significantly.
Industry insiders said the fresh increase remains relatively moderate compared to the surge in global crude rates, but fuel retailers are still absorbing substantial losses.
Officials had earlier indicated that despite the previous hike, oil companies were continuing to incur heavy daily losses due to the widening gap between global crude costs and domestic retail prices.
Fuel prices now stand at their highest level since mid-2022.
Rates differ across states depending on local taxes and levies.
In Mumbai, petrol is now retailing at ₹107.59 per litre and diesel at ₹94.08.
Kolkata has seen petrol prices touch ₹109.70 and diesel ₹96.07, while Chennai residents are paying ₹104.49 for petrol and ₹96.11 for diesel.
The increase follows recent revisions in compressed natural gas prices as well, with CNG rates having risen twice within days in major urban centres including Delhi and Mumbai.
Analysts believe the calibrated hikes are aimed at easing financial strain on oil companies without triggering an immediate inflationary shock.
However, economists caution that sustained fuel price increases could gradually push transportation and logistics costs higher, eventually feeding into broader inflation.
The Centre has already begun encouraging fuel-saving measures, including reduced travel and wider work-from-home practices, to contain fuel demand and manage pressure on the country’s import bill.
With global crude markets remaining volatile, further adjustments in domestic fuel prices cannot be ruled out if supply disruptions persist.
