Fuel Prices Hit Fourth Increase in May; Cumulative Rise Approaches Rs 7.5 Per Litre

Fuel prices have surged once more, marking the fourth consecutive hike since May 15 as oil marketing companies continue to pass on rising costs to consumers. Petrol prices climbed by Rs 2.61 per litre, while diesel increased by Rs 2.71 per litre in the latest revision, accumulating to nearly Rs 7.5 per litre in total increases over the past fortnight.

The successive price adjustments have intensified strain on household finances and transportation expenses across the country.

Prices Across Major Cities

In Delhi, petrol now stands at Rs 102.12 per litre, up from Rs 99.51, with diesel reaching Rs 95.20 per litre compared to the earlier Rs 92.49. Hyderabad's petrol prices have climbed to Rs 115.73 per litre, while diesel has touched Rs 103.82 per litre.

Mumbai residents are paying Rs 111.21 per litre for petrol and Rs 97.83 for diesel. In Kolkata, petrol is priced at Rs 113.51 per litre and diesel at Rs 99.82 per litre. Chennai's rates stand at Rs 107.77 per litre for petrol and Rs 99.55 per litre for diesel.

Regional variations in fuel costs persist due to differences in state-level taxation policies.

Crude Oil Surge and Currency Pressures

The successive price hikes stem from escalating global crude oil prices coupled with a depreciating rupee, both factors raising import expenses for fuel retailers. Global crude oil prices have climbed more than 50 per cent since late February, driven by heightened tensions in the Middle East that have disrupted shipping through the Strait of Hormuz.

The timeline of increases shows petrol and diesel rates rose by Rs 3 per litre on May 15, followed by an increase of 90 paise on May 19 and another adjustment of up to 91 paise on May 23.

For nearly four years prior to this month, retail fuel prices had remained relatively stable. The current levels represent the highest prices witnessed since May 2022.

Market Structure and Private Sector Moves

State-owned Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd collectively command approximately 90 per cent of India's fuel retail market. Private operators including Nayara Energy, Shell, and Jio-BP have aligned their pricing with public sector adjustments during this period.

Nayara Energy had previously increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre in March. Shell implemented petrol price hikes of Rs 7.41 per litre and diesel increases of up to Rs 25 per litre beginning April 1.