Petrol Crosses Rs 107 in Mumbai After Fresh Fuel Price Hike
Mumbai residents are facing another rise in fuel expenses after oil marketing companies increased petrol and diesel prices for the second time within days amid mounting pressure from global crude oil markets.
Following the latest revision announced on Tuesday, petrol in Mumbai is now priced at Rs 107.59 per litre after a hike of 91 paise, while diesel rates have increased by 94 paise to reach Rs 94.08 per litre.
Second Increase Within a Week Adds Pressure on Daily Commuters
The latest fuel price revision comes shortly after oil companies raised rates by nearly Rs 3 per litre last week. The repeated hikes have significantly increased commuting and transportation costs across Mumbai, where millions depend on road travel every day.
The fresh increase is being linked to the ongoing geopolitical tensions in West Asia, especially developments involving Iran, which have pushed international crude oil prices sharply higher in recent weeks.
Crude Oil Prices Jump Over 60 Percent in Three Months
Data released by the Petroleum Planning and Analysis Cell under the Petroleum Ministry showed that the average cost of India’s crude oil basket has surged from USD 69.01 per barrel in February 2026 to USD 110.73 per barrel by May 15.
The steep rise of more than 60 percent within three months has intensified pressure on domestic fuel retailers and refiners.
Strait of Hormuz Disruptions Raise Supply Concerns
Industry officials have also pointed to disruptions in cargo movement through the Strait of Hormuz, a key global shipping route used for crude oil transportation. Since India imports over 85 percent of its crude oil needs, any instability in the region directly affects domestic fuel pricing.
Analysts say uncertainty in supply chains and rising insurance and shipping costs are contributing to the increase in retail fuel rates across Indian cities.
Transport Sector Braces for Higher Operational Costs
Mumbai’s transport and logistics sectors are expected to feel the impact immediately. Taxi unions, app-based cab drivers and goods transport operators have already raised concerns about increasing operational expenses.
Experts believe the fuel hikes could soon affect prices of essential commodities and services as transportation costs rise throughout the supply chain.
Weakening Rupee Adds to Import Burden
Another major factor behind the latest increase is the weakening Indian rupee against the US dollar. Reports indicate the rupee has fallen close to the 96-mark against the dollar, making crude oil imports more expensive for Indian companies.
Despite earlier fuel price increases, oil marketing firms were reportedly under pressure due to losses incurred after keeping prices stable for several weeks while international crude rates continued climbing.
Possibility of Further Fuel Price Hikes Remains
Market observers warn that fuel prices may continue to rise if tensions in West Asia persist or escalate further. Major metropolitan cities such as Mumbai could witness additional revisions in petrol and diesel rates in the coming weeks if global crude markets remain volatile.
