Fourth hike in less than two weeks
NEW DELHI, May 25:
Petrol prices were raised by Rs 2.61 a litre and diesel by Rs 2.71 on Monday, the fourth increase in less than two weeks that extended a delayed pass-through of soaring global crude oil costs triggered by the Iran conflict.
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The latest increase took cumulative hikes since May 15 to nearly Rs 7.5 per litre.
In Delhi, petrol prices rose to Rs 102.12 per litre from Rs 99.51, while diesel climbed to Rs 95.20 from Rs 92.49, according to industry sources.
Fuel prices have now reached their highest levels since May 2022 after remaining largely frozen for more than two years, barring a Rs 2-per-litre cut in March 2024 ahead of national elections.
The hike came as global oil prices fell sharply amid tentative hopes for a deal to end the US-Israel war on Iran. Brent crude, the primary benchmark for global oil prices, fell more than 5 per cent after the US and Iran agreed in principle to reopen the Strait of Hormuz.
Global crude oil prices had surged more than 50 per cent since late February following US-Israeli strikes on Iran and disruptions to shipping through the Strait of Hormuz, a key global oil transit route. Click here to watch video
State-run retailers had delayed passing on higher input costs for weeks, a move the government said was intended to shield consumers from inflation. Opposition parties, however, accused the administration of holding back price increases until after key state elections.
The May 15 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.
Since the start of war, domestic cooking gas LPG prices have been raised by Rs 60 per 14.2-kg cylinder and that of compressed natural gas (CNG) by Rs 4 per kg since mid-May.
Despite the price increases, auto fuels petrol and diesel, and domestic cooking gas LPG continue to be sold at a substantial loss. Besides the three fuel, state-owned fuel retailers — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) — have paused increase in jet fuel (ATF) rates.
The three firms together control 90 per cent of India’s fuel market. (PTI)
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