Petrol, Diesel Prices Rise for Third Time in 10 Days; Experts Warn More Hikes May Follow

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Petrol and diesel prices in India have gone up once again, marking the third increase in less than 10 days and putting fresh pressure on household budgets across the country. The latest revision came into effect on Saturday, with petrol becoming costlier by up to 87 paise per litre and diesel by around 91 paise in several cities.

In Delhi, petrol is now being sold at ₹99.51 per litre, while diesel has reached ₹92.49 per litre. Just a few days ago, prices were noticeably lower, but the steady rise has started worrying commuters, transport operators and small business owners who depend heavily on fuel for daily operations.

This is the third hike since May 15, when oil companies first revised fuel prices after keeping them unchanged for weeks despite rising crude oil costs in the international market. On May 15, prices were increased by ₹3 per litre, followed by another hike of around 90 paise on May 19. With the latest revision, fuel prices have climbed by nearly ₹5 per litre within a short span.

Industry experts believe the increases may not stop here. According to market analysts, oil marketing companies are still facing major losses because global crude oil prices remain elevated due to tensions in West Asia. The ongoing conflict involving Iran, Israel and the United States has disrupted energy markets and pushed crude prices sharply higher in recent weeks.

At one point, global crude prices crossed $120 per barrel before settling near the $100 to $105 range. Even though prices cooled slightly, the impact on importing countries like India remains significant because the country depends on foreign crude oil for most of its fuel needs.

Analysts say state-run oil companies had been absorbing the burden for nearly three months, but the situation eventually became financially difficult to sustain. Financial services firm Emkay Global recently estimated that oil companies are still losing around ₹17 to ₹18 on every litre of fuel sold despite earlier tax reductions announced by the Centre.

The report also warned that fuel prices could rise by another ₹10 per litre over the next few weeks if crude oil prices stay high. These hikes may happen gradually instead of in a single revision to avoid sudden shock among consumers.

Bharat Petroleum Corporation Limited has also indicated that losses continue to remain severe, especially on diesel sales. Company officials recently stated that BPCL is losing between ₹25 and ₹30 per litre on diesel and around ₹10 to ₹14 per litre on petrol even after the recent price hikes.

The central government, meanwhile, has clarified that there are currently no plans to provide direct financial assistance to oil refiners. This has increased expectations that oil companies may continue passing on part of the burden to customers through further fuel price revisions.

The rising cost of petrol and diesel is expected to affect much more than just vehicle owners. Transport costs play a major role in the prices of vegetables, groceries, milk, online deliveries and everyday essentials. If fuel prices continue rising, consumers could soon see higher prices across several sectors.

Public transport fares may also increase in many cities if fuel rates remain elevated for a longer period. Small traders and logistics companies are already expressing concern over shrinking margins due to repeated hikes in operating costs.

India had largely kept fuel prices unchanged since April 2022 except for a temporary reduction before the 2024 Lok Sabha elections. While many countries adjusted retail fuel prices earlier in response to global crude fluctuations, Indian oil companies delayed revisions for several weeks to shield consumers from sudden inflationary pressure.

However, with international crude markets still volatile and geopolitical tensions showing no signs of easing, experts believe Indian consumers should prepare for more fluctuations in petrol and diesel prices in the coming days.