Indian consumers were hit with another sharp fuel price increase on Monday after state-run oil companies revised petrol and diesel rates for the fourth time within two weeks, intensifying concerns over inflation and rising household expenses.
The latest hike pushed petrol and diesel prices close to multi-year highs, with cumulative increases since mid-May now approaching ₹7.5 per litre across several cities.
Fourth Fuel Hike in Less Than Two Weeks
According to revised rates issued by public sector fuel retailers, petrol prices were increased by ₹2.61 per litre while diesel became costlier by ₹2.71 per litre.
In Delhi, petrol crossed the ₹102 mark while diesel moved above ₹95 per litre. Mumbai recorded even steeper prices, with petrol climbing beyond ₹111 per litre and diesel nearing ₹98.
The latest revision follows multiple back-to-back hikes earlier this month after a long freeze in retail fuel pricing.
Industry observers said oil companies are gradually passing on the burden of rising international crude oil costs to domestic consumers after initially absorbing a portion of the losses.
West Asia Crisis Continues to Shake Oil Markets
The fresh increase comes amid continued volatility in global energy markets following escalating tensions in West Asia and disruptions around the Strait of Hormuz, one of the world’s most critical oil transit routes.
International crude prices have reportedly surged sharply since late February due to geopolitical instability and concerns over supply disruptions affecting global shipments.
India, which imports a major share of its crude oil requirements, remains highly vulnerable to fluctuations in global oil prices.
Inflation Fears Rise Across Sectors
Economists and market analysts warned that repeated fuel hikes could trigger a wider inflationary ripple effect across transportation, logistics and essential commodities.
Rising diesel prices are expected to directly impact freight movement, potentially increasing the cost of vegetables, milk, groceries and public transport services in several states.
The latest revision has also added pressure on cab drivers, delivery operators and small businesses already struggling with higher operating costs.
Political Debate Intensifies Over Timing of Price Hikes
The renewed fuel revisions have reignited political debate, with opposition parties questioning why oil prices remained largely stable earlier despite rising crude costs.
Critics accused the government of delaying major price revisions until after crucial state elections, while government supporters argued that oil companies had initially shielded consumers by absorbing higher input costs during the peak of the global energy crisis.
The Centre and oil marketing companies have so far maintained that pricing decisions are linked to international crude trends and operational sustainability.
Private Retailers Also Raise Rates
Private fuel retailers have also revised prices upward in line with public sector companies.
While firms like Nayara Energy and Shell had already implemented earlier hikes independently, Jio-BP reportedly aligned its fuel rates with PSU revisions.
With the latest increases, petrol and diesel prices are now at their highest levels in nearly four years.
