New Delhi, May 19: State-run oil companies increased petrol and diesel prices by approximately 90 paise per litre on Tuesday, marking the second upward revision in less than a week.
The newest rate adjustments come just four days after fuel retailers ended a nearly four-year price freeze with a 3-rupee per litre increase on May 15. The latest change brings retail automotive fuel costs in New Delhi to 98.64 rupees per litre for petrol and 91.58 rupees per litre for diesel, according to petroleum distribution logs.
The pricing shifts materialize as international crude values continue to escalate, gaining more than 50 percent following military strikes involving the United States, Israel, and Iran. The conflict has severely impacted energy trade flows through the critical Strait of Hormuz logistics channel, forcing local oil marketing firms to begin passing an accumulation of operational losses down to consumers.
Petroleum Ministry Joint Secretary Sujata Sharma stated that even with recent adjustments, state-backed fuel providers continue to operate at a deficit of roughly 750 crore rupees every day. Financial research firm Crisil noted that under-recoveries remain high, with retailers absorbing losses of approximately 10 rupees per litre on petrol and 13 rupees per litre on diesel.
“The May 15 hike cut losses by a fourth,” Sharma noted during a policy briefing prior to the latest rate change.
The sudden return to market-linked pricing follows the conclusion of several major state assembly elections, during which retail rates had been kept artificially low to insulate domestic consumers. In response to the escalating national import bill, Prime Minister Narendra Modi issued a formal statement encouraging public conservation measures, remote work structures, and reduced corporate travel to safeguard the country’s foreign exchange reserves.
