The latest revision pushed retail fuel prices higher by 82 paise to 96 paise per litre across metropolitan cities, with variations reflecting differences in local taxation and levies. In Delhi, petrol prices rose by 87 paise to ₹98.64 per litre, while diesel increased by 91 paise to ₹91.58 per litre. In Kolkata, petrol climbed by 96 paise to ₹109.70 per litre and diesel reached ₹96.07 per litre after a 94 paise hike. Mumbai recorded petrol at ₹107.59 per litre, up by 91 paise, and diesel at ₹94.08 per litre, also up by 94 paise. In Chennai, petrol rose by 82 paise to ₹104.49 per litre, while diesel increased by 86 paise to ₹96.11 per litre.
The revisions were implemented simultaneously by Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, which collectively control more than 90 percent of India’s fuel retail market. The move came just four days after an earlier increase of ₹3 per litre for petrol and diesel, a decision attributed to daily revenue losses of nearly ₹1,000 crore on auto fuels and cooking gas. Following that earlier hike, cumulative losses for the three companies reportedly narrowed to around ₹750 crore by Monday.
Despite successive price increases, industry estimates indicate that the oil marketing companies continue to incur losses ranging between ₹9 and ₹12 per litre on petrol and diesel sales. Analysts expect further upward revisions in retail fuel prices if global crude oil remains elevated.
India, which imports more than 88 percent of its crude oil requirements, remains highly vulnerable to international energy market volatility. Benchmark Brent crude prices surged nearly 54 percent to 2.10 per barrel from .87 before the conflict in West Asia began on February 28, briefly touching nearly 0 per barrel on March 9 before easing slightly.
The Indian rupee has also weakened nearly 6 percent against the United States dollar since the beginning of the year, with the exchange rate currently at ₹96.34 per dollar. According to a Bloomberg report, Bank of America commodities and derivatives research head Francisco Blanch projected a best-case scenario of Brent crude averaging per barrel for the remainder of the year, although prices could rise further if geopolitical tensions involving Iran escalate.
Government data shows that India’s crude oil basket averaged $70.99 per barrel in fiscal year 2025–26 before rising sharply following the outbreak of the conflict. The Indian basket averaged $63.08 per barrel in January 2026, increased to $69.01 in February, surged to $113.49 in March during the first full month of the conflict, and further climbed to $114.48 in April before easing slightly in May to $106.69 per barrel as of May 18.
The sustained rise in global crude oil prices combined with currency depreciation and supply disruptions has placed India’s fuel market under intense pressure, signaling continued volatility in domestic fuel pricing in the coming weeks.
About The Author
.jpg)
.jpg)
.jpg)
Comment List