Petrol and diesel prices across India saw a significant jump of ₹3 per litre on Friday, as state-run oil firms finally buckled under the weight of surging global crude costs driven by the intensifying conflict in West Asia. As reported, the revision ended an 11-week period of price stability and saw petrol in the capital climb from ₹94.77 to ₹97.77 per litre, while diesel rose to ₹90.67.
The impact was felt across all major metros. In Mumbai, petrol is now retailing at ₹106.68 per litre, while prices in Kolkata and Chennai reached ₹108.74 and ₹103.67 respectively. Diesel consumers faced a similar squeeze, with rates hitting ₹95.13 in Kolkata and upwards of ₹93 in Mumbai and Chennai. Beyond liquid fuels, Delhi’s commuters using CNG were not spared either, as prices rose by ₹2 per kg to reach ₹87.
For months, India managed to insulate its domestic market from the volatility of international energy prices. However, with the Indian crude basket nearly doubling from its February average of $69 per barrel to roughly $114, the financial strain on oil marketing companies became untenable. According to industry sources, this latest increment of ₹3 covers merely a tiny fraction of the actual pressure on costs, implying that more increments may be required if the political scenario continues to remain unpredictable.
This is because this latest increment comes after a protracted period when there was no hike in prices at all since April 2022, with just one exception being when a ₹2 reduction was effected shortly before the 2024 elections. However, while Indian Oil, Bharat Petroleum, and Hindustan Petroleum companies had earlier borne the losses to safeguard consumers' interests during the early phases of the Russia-Ukraine conflict, the enormity of the present price rise (which economists expected would necessitate an increment when Brent crude breached the $105 level) left no option but to raise the price level.
Before the announcement, concerns about an increase caused widespread panic among customers who rushed to fill up their vehicles. Accounts from fuel stations throughout the Delhi-NCR region, Uttar Pradesh, and Gujarat talked about long lines with motorists filling up their cars before the price rise came into effect. With rumours doing the rounds that there could be an even bigger increase of ₹20 per litre, many people decided to fill up their vehicles completely.
Also read: WFH, save fuel, skip gold: PM Modi on oil crisis
Follow us
