In the national capital, New Delhi, petrol is now priced at Rs 98.64 per litre, while diesel has risen to Rs 91.58 per litre, according to reports from the Press Trust of India. Fuel prices across India continue to vary from city to city due to differences in state taxes, transportation costs, and dealer commissions.
Global crude oil prices climbed nearly 8 percent over the past week as geopolitical tensions in the Middle East intensified. On May 15, Indian fuel retailers implemented a Rs 3 per litre increase in petrol and diesel prices, the first such hike in four years. The latest adjustments, including the current increase, have been accompanied by two revisions in gas prices over the past week, raising concerns among public transport operators who are sensitive to fuel cost fluctuations.
The price revisions come shortly after the completion of Assembly Elections in India, during which the Bharatiya Janata Party, led by Prime Minister Narendra Modi, secured victories in three out of five states, expanding its political influence. The opposition has accused the government of delaying fuel price hikes to avoid voter backlash during the electoral period.
Fuel price sensitivity among Indian voters remains high, with historical trends indicating that such increases can significantly influence electoral behavior. The recent hike implemented last week is estimated to cover only one-fifth of the required adjustment needed to align retail prices with actual costs, with experts suggesting that further increases are likely in the near future.
On Monday, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, stated that the May 15 price revision had reduced losses by approximately one-fourth. However, she also noted that oil marketing companies continue to incur losses of around Rs 750 crore per day, underscoring persistent financial pressure on the sector despite recent price adjustments.
The ongoing series of fuel price hikes highlights a broader challenge of balancing global crude volatility, domestic fiscal pressures, and political sensitivity, with further adjustments expected as market conditions evolve
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