New Delhi, May 19 (IANS): State-run oil marketing companies raised petrol and diesel prices for the second time in less than a week on Tuesday, with petrol becoming costlier by 86 paise per litre and diesel by 83 paise per litre, pushing petrol prices in Delhi to Rs 98.64 per litre and diesel to Rs 91.58 per litre – the highest levels since May 2022. The latest revision follows the first hike of Rs 3 per litre on May 15, which was itself the first increase in more than four years, driven by soaring global crude oil prices triggered by the ongoing US-Iran conflict and disruptions to supplies through the Strait of Hormuz. Global crude oil prices have surged more than 50 per cent since tensions involving Iran escalated earlier this year, placing severe financial strain on India’s state-run fuel retailers. The latest fuel price hike also follows successive increases in compressed natural gas rates, with Indraprastha Gas Limited raising CNG prices by Re 1 per kg on Sunday – the second hike within 48 hours – coming on top of a Rs 2 per kg increase imposed earlier this month amid the West Asia conflict.
The repeated price revisions reflect the mounting financial pressure on India’s public sector oil retailers, with industry estimates projecting that Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited will report combined losses of nearly Rs 1.2 lakh crore in the first quarter of FY27 alone. Despite the back-to-back price hikes, the increases remain significantly lower than the actual under-recoveries being absorbed by the oil marketing companies on every litre of fuel sold. The escalating energy costs are expected to have broader inflationary consequences across the economy, adding pressure to household budgets, transportation costs, and input prices at a time when the government is already sacrificing significant revenue through excise duty cuts to cushion the impact on consumers.