Fuel Rate Revision Continues After End of Four-Year Freeze

Petrol and diesel prices were hiked by around 90 paise per litre on Tuesday, making it the second increase in fuel rates in less than a week after state-run oil companies ended a nearly four-year freeze on price revisions.

In New Delhi, petrol prices increased from Rs 97.77 per litre to Rs 98.64, while diesel prices rose from Rs 90.67 to Rs 91.58 per litre, according to industry sources.

The latest revision follows a Rs 3 per litre increase announced on Friday, which was the first major hike in more than four years. Oil companies had kept retail fuel prices unchanged for months despite rising international crude oil prices, mainly to shield consumers during a sensitive political period marked by major state elections.

Global crude oil prices have surged sharply following tensions and conflict involving Iran in West Asia, increasing pressure on fuel retailers. Industry experts say the recent hikes are intended to partially reduce mounting losses suffered by oil marketing companies due to elevated import costs.

Despite the increases, officials indicate that fuel retailers are still selling petrol and diesel below market-linked prices and continue to absorb substantial losses. Analysts also warn that continued fuel price increases may raise transportation expenses and contribute to inflationary pressure across sectors.

Fuel prices vary between states because of local taxes and VAT differences. Major metro cities also recorded fresh increases after Tuesday’s revision.

Petrol Prices in Major Cities

Diesel Prices in Major Cities