NEW DELHI, May 19:
Petrol and diesel prices were raised by about 90 paise per litre on Tuesday – the second increase in less than a week – as state-run fuel retailers moved to narrow mounting losses triggered by a sharp surge in global crude oil prices following the Iran conflict.
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Petrol price in New Delhi rose to Rs 98.64 per litre from Rs 97.77, while diesel rate increased to Rs 91.58 from Rs 90.67 a litre, according to industry sources.
The latest increase follows a Rs 3-per-litre hike on Friday- the first fuel price revision in more than four years.
The back-to-back increases come after global crude oil prices surged more than 50 per cent since late February following US-Israeli strikes on Iran and disruptions to shipments through the Strait of Hormuz, a critical global oil transit route.
Fuel retailers had kept pump prices low despite rising input costs, a move the Government said was aimed at shielding consumers from inflation. Opposition parties, however, accused the Government of delaying price revisions until after key state elections.
Friday’s increase came after the ruling Bharatiya Janata Party (BJP) expanded its electoral footprint by winning three of five state and UT elections, including West Bengal.
Despite the hikes, fuel retailers continue to absorb significant losses. Petroleum Ministry’s Joint Secretary, Sujata Sharma said on Monday that the May 15 increase reduced losses by about a fourth, but state-run oil firms were still losing around Rs 750 crore per day.
According to Crisil, oil marketing companies were losing about Rs 10 per litre on petrol and Rs 13 per litre on diesel even after the earlier hike.
Petrol and diesel prices are now at their highest levels since May 2022. Rates had remained frozen since April 2022 except for a Rs 2-per-litre cut in March 2024 ahead of national elections.
Prices vary across states due to local taxes. (PTI)
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