NEW DELHI, May 25 — State-run oil marketing companies raised auto fuel prices on Monday, pushing the retail cost of petrol past the ₹100 threshold in the national capital for the first time in four years. Petrol prices climbed by ₹2.61 per litre to ₹102.12 in Delhi, while diesel advanced by ₹2.71 per litre to retail at ₹95.20.
The revision marks the fourth price escalation within a 10-day window, bringing the total cumulative increase over the last two weeks to roughly ₹7.35 per litre for petrol and ₹7.53 per litre for diesel. Industry executives and sector analysts noted that further incremental hikes remain highly probable as oil firms work to clear both ongoing revenue losses and past under-recoveries on auto fuels and cooking gas.
“The state-run oil companies are not only recovering current revenue losses on petrol and diesel but also recouping their past under-recoveries,” an industry executive stated, speaking on the condition of anonymity. The executive added that firms deferred immediate price increases following the outbreak of the West Asia conflict on February 28 due to assembly elections.
The fuel price adjustments vary across major metropolitan areas because of localized tax structures:
- Kolkata: Petrol rose by ₹2.87 to ₹113.51 per litre; diesel increased by ₹2.80 to ₹99.82 per litre.
- Mumbai: Petrol grew by ₹2.72 to ₹111.21 per litre; diesel moved up by ₹2.81 to ₹97.83 per litre.
- Chennai: Petrol expanded by ₹2.46 to ₹107.77 per litre; diesel rose by ₹2.57 to ₹99.55 per litre.
The domestic price corrections come amid highly volatile global indicators. International benchmark Brent crude, which surged toward $120 a barrel in early March, dropped to $99.36 a barrel in early trading Monday on optimism regarding supply routes through the Strait of Hormuz. Despite the recent dip from its peak, Brent remains roughly 42% higher than its pre-conflict baseline of $72.87 recorded in late February.
Independent experts noted that the financial strain on oil firms is easing gradually with each step. Combined daily losses for the three major state companies dropped from ₹1,000 crore prior to the first hike on May 15 to an estimated position significantly below ₹500 crore following Monday’s changes. Analysts stated that a fifth domestic price increase is anticipated unless Brent stabilizes closer to the $70-to-$100 range.
The price hikes coincide with exceptionally strong financial performances by the oil marketing companies. Driven by steady refining margins prior to the geopolitical crisis, the three state firms posted a joint net profit of ₹19,470 crore for the January–March quarter, representing a 40.74% increase over the previous year. For the full 2025–26 fiscal year, combined net profits surged 130% to ₹77,280.65 crore.
