New Delhi: Fuel prices across India have been revised upward once again, marking the fourth increase in just 10 days as geopolitical instability involving Iran continues to cast uncertainty over global crude oil supplies.
Public sector oil retailers on Monday raised petrol prices by Rs 2.61 per litre and diesel rates by Rs 2.71 per litre, adding further pressure on consumers already dealing with repeated price revisions. Following the latest adjustment, petrol in the national capital is now retailing at Rs 102.12 per litre, while diesel has climbed to Rs 95.20 per litre.
The fresh increase comes shortly after the price revision announced on May 23, when petrol became costlier by 87 paise per litre and diesel by 91 paise per litre. During the same round, compressed natural gas (CNG) prices in Delhi were also raised by Re 1 per kg, taking the retail rate to Rs 81.09 per kg.
The revised prices have impacted all major metro cities.
In Kolkata, petrol now costs Rs 113.51 per litre, reflecting an increase of Rs 2.87, while diesel has risen to Rs 99.82 per litre after a Rs 2.80 hike.
In Mumbai, petrol prices touched Rs 111.21 per litre, up by Rs 2.72, while diesel is now priced at Rs 97.83 per litre.
In Chennai, petrol now retails at Rs 107.77 per litre, after a rise of Rs 2.46, while diesel has climbed to Rs 99.55 per litre, following an increase of Rs 2.57.
The latest upward revision is being linked to heightened tensions in West Asia, particularly the ongoing uncertainty surrounding Iran and concerns over the Strait of Hormuz, a crucial route for global crude shipments. Disruptions or fears of supply restrictions through the narrow passage have kept international oil markets volatile in recent weeks.
Earlier, state-owned fuel retailers had indicated they were absorbing heavy financial pressure, reportedly facing under-recoveries of nearly Rs 1,000 crore per month before the recent hikes were introduced.
Interestingly, the domestic price revision has come even as Brent crude slipped by over five per cent in international trade, falling below the $100-per-barrel level for the first time this month, indicating that local pricing pressures may also reflect previous losses and inventory adjustments.
Experts believe the increase in diesel prices could trigger a broader economic impact, particularly on transportation and supply chain expenses, which may eventually translate into higher costs for essential commodities and consumer goods in the coming weeks.
