Indian consumers are facing a double blow at the pumps this week as state-run oil marketing companies (OMCs) hiked petrol and diesel prices by approximately 90 paise per litre on Tuesday. This marks the second significant upward revision in just five days, following a period of nearly four years of frozen rates.
The latest adjustment follows a massive ₹3 per litre hike last Friday, signaling an end to the price stability consumers had enjoyed since some time. The latest hike comes just three days after an earlier increase of ₹3 per litre announced on May 15. Following that revision, petrol prices in Delhi had risen from ₹94.77 to ₹97.77 per litre, while diesel increased from ₹87.67 to ₹90.67 per litre.
With Tuesday’s revision, petrol prices in the national capital have increased by another 87 paise and are now retailing at ₹98.64 per litre. Diesel prices in Delhi also rose by 91 paise to ₹91.58 per litre.
In Gujarat’s capital Gandhinagar, petrol is now priced at ₹98.56 per litre, while diesel has climbed to ₹94.40 per litre. In Ahmedabad, petrol prices stand at ₹98.33 per litre and diesel at ₹94.10 per litre.
The Price Breakdown: Metros Hit Hard
The price hike varies slightly across regions due to local taxation, with Kolkata witnessing the sharpest increase among the major metros.
| City | Petrol Price (per litre) | Increase | Diesel Price (per litre) | Increase |
| Delhi | ₹98.64 | 87 paise | ₹91.58 | 91 paise |
| Mumbai | ₹107.59 | 91 paise | ₹94.08 | 94 paise |
| Kolkata | ₹109.70 | 96 paise | ₹96.07 | 94 paise |
| Chennai | ₹104.49 | 82 paise | ₹96.11 | 86 paise |
Why Prices are Skyrocketing
The primary driver behind the domestic surge is the escalating US-Israeli conflict with Iran, which has sent shockwaves through global energy markets. Key factors include:
- Supply Disruptions: Military strikes have crippled energy facilities across the Gulf region.
- Hormuz Deadlock: The ongoing closure of the Strait of Hormuz by Iran has choked one of the world’s most vital oil transit points.
- Massive Losses: Even with these hikes, the government revealed that OMCs were losing roughly ₹750 crore per day. Before Friday’s revision, those daily losses were estimated at a staggering ₹1,000 crore.
Market Reaction
While fuel prices climbed, the broader financial markets showed cautious resilience on Tuesday. The BSE Sensex rose 0.47% to close at 75,671.07, while the Nifty 50 managed a marginal gain of 0.12%.
However, the energy sector remains under pressure. While specialized players like Rishabh Instruments (+13.95%) and Seamec (+13.28%) saw massive gains, industrial mainstays like TD Power Systems (-5.94%) and Astral (-6.4%) faced significant sell-offs as investors weighed the impact of rising input costs.
“The back-to-back hikes are a necessary measure to help oil companies recoup losses incurred from the doubling of international crude prices,” a senior oil ministry official stated. “We are monitoring the situation in the Gulf closely.”
Also Read: After 137 Days Of Stability Provided By Elections, Petrol Prices Are Rising Again https://www.vibesofindia.com/after-137-days-of-stability-provided-by-elections-petrol-prices-are-rising-again/
