India hikes petrol and diesel prices for 2nd time in less than a week
The increase pushed petrol prices in New Delhi to Rs 98.64 per litre from Rs 97.77, while diesel rose to Rs 91.58 from Rs 90.67
India today hiked petrol and diesel prices by nearly ninety paise per litre in the second increase in fuel rates in less than a week after state-run oil firms ended a nearly four-year freeze on rate revisions.
The increase pushed petrol prices in New Delhi to Rs 98.64 per litre from Rs 97.77, while diesel rose to Rs 91.58 from Rs 90.67.
On 15 May, petrol and diesel prices were raised by Rs 3 per litre for the first time in more than four years, as surging global crude prices following the West Asia war forced state-run fuel retailers to pass on part of their mounting losses.
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Fuel rates vary across Indian states due to differences in value-added tax.
Also on 15 May, compressed natural gas (CNG) prices were raised by Rs 2 per kg in cities. This was followed by a hike in CNG prices by Re 1 a kg on 17 May.
Global crude prices have surged more than 50 per cent since US-Israeli strikes on Iran on 28 February and Tehran's retaliation, disrupting flows through the Strait of Hormuz, a key artery for global oil shipments.
Despite the surge, retail fuel rates were kept frozen at two-year-old rates as part of what the Indian government said was an effort to shield consumers from higher global energy costs.
On Monday, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, stated that the 15 May hike had cut losses by a fourth and that oil companies were still incurring about Rs 750 crore a day in losses.
Prices have remained frozen since April 2022, except for a one-off reduction of Rs 2 a litre each on petrol and diesel in March 2024, just before Lok Sabha elections. Rates were last hiked in April 2022.
Petrol in Mumbai now costs Rs 107.59 a litre and diesel costs Rs 94.08 per litre. In Kolkata, petrol now costs Rs 109.70 per litre and diesel Rs 96.07, while in Chennai, prices increased to Rs 104.49 for petrol and Rs 96.11 for diesel.
India's retail inflation, measured by the Consumer Price Index (CPI), rose to 3.48 per cent in April this year from 3.40 per cent in March, while wholesale price inflation (WPI) surged to 8.3 per cent, a 42-month high, driven by a sharp rise in fuel and energy prices amid elevated global crude oil rates.
