NEW DELHI/KOLKATA, MAY 15 — State-owned oil marketing companies implemented a sharp increase in fuel prices on Friday, raising petrol and diesel rates by up to ₹3 per litre across major cities. The revision marks the end of a long-standing price freeze and reflects the financial pressure caused by escalating geopolitical conflict in West Asia.
In the national capital, petrol prices rose to ₹97.77 per litre from the previous ₹94.77, while diesel climbed to ₹90.67. Kolkata recorded one of the highest spikes, with petrol now costing ₹108.74 per litre. Industry sources stated that Indian Oil Corporation, BPCL, and HPCL could no longer sustain the previous rates as international crude oil prices surged toward $114 per barrel.
“The increase is also seen as a partial pass-through of higher global crude oil prices, which have surged amid renewed geopolitical tensions,” an industry official noted. Analysts affirmed that while a small reduction occurred in March 2024, retail prices had remained largely static since April 2022 despite extreme market volatility.
Regional variations showed Chandigarh petrol prices reaching ₹94 per litre, while Mumbai saw a jump to ₹106.68. Officials maintained that the companies had been absorbing significant input costs and under-recoveries for nearly four years to maintain domestic stability. However, the recent spike in global benchmarks has tightened margins to a level that made continued price stagnation unsustainable.
