Fuel Prices Rise Again, Fourth Hike in Under Two Weeks

Fuel prices in India have once again risen by Rs 2 from the last time. The Oil Marketing Companies (OMCs) announced an intense increase on Monday, becoming 4th revisions in less than two weeks and bolstering the continuing upward trend in domestic fuel rates.

The new petrol price has been increased by Rs 2.61 per liter and diesel by Rs 2.71 per liter, taking collective hikes to nearly Rs 7.5 per liter ever since price revisions restarted on May 15 after a long hiatus.

The latest update comes just days after the May 23 revision, displaying unrelenting pressure on fuel pricing. This increasing surge in the fuel price day by day started posing a huge concern for commuters.

The highest mark noticed in Delhi, petrol now costs Rs 102.12 per liter, up from Rs 99.51, while diesel has risen to Rs 95.20 per liter from Rs 92.49. Similar upward revisions have been recorded across metro cities, pushing fuel prices well beyond Rs 100 mark in several regions.

Sharp Hikes Reflect Global Pressure on Fuel Pricing

The continued increase in domestic fuel prices is closely linked to rising global crude oil rates and currency pressures. International crude prices have surged to around $110–115 per barrel during the ongoing geopolitical tensions in West Asia, significantly raising import costs for Indian oil companies.

At the same time, the depreciation of the rupee against the US dollar has further increased the landed cost of crude, adding to pricing pressure. India imports nearly 85 percent of its crude oil requirement, making domestic fuel rates highly sensitive to global developments.

Industry executives from ONGC and BPCL have pointed to prolonged disruptions in the Strait of Hormuz and ongoing geopolitical uncertainty as key factors driving volatility in global energy markets. These disruptions have strained supply chains and increased risks around oil shipments.

Under-Recoveries Continue to Impact OMCs

State-run oil marketing companies now continue to operate under financial stress, with estimates suggesting losses of nearly Rs 1000 crore per day during the recent period when prices were held steady.

According to industry officials, diesel and petrol were being sold below market-linked prices, leading to significant under recoveries. The recent price hikes are seen as a partial correction to offset these losses.

Experts note that while the government had safeguarded consumers from immediate price shocks for over two months, continued global pressure has made gradual price adjustments unavoidable.

Also Read: India's Hormuz Oil Push Signals Supply Security Amid Crisis

Global Volatility Adds Uncertainty to Outlook

Oil markets remain highly volatile, with prices reacting sharply to geopolitical developments. While crude prices briefly dipped on expectations of a potential easing of tensions between US and Iran, uncertainty around a long term resolution continues to influence market sentiment.

Statements from global leaders indicate that negotiations remain fragile and any disruption in supply routes could again push prices higher.

Outlook: Continued Volatility Expected

With crude prices remaining raised and geopolitical risks unresolved, fuel prices in India are expected to stay volatile in the near term. Further revisions will likely depend on global oil trends, currency movement and the financial position of OMCs.

The latest hike underscores a clear shift from temporary price stability to market-linked corrections, suggesting that consumers may continue to face incremental increases in the coming weeks.