Oil marketing companies on Friday increased petrol and diesel prices by around ₹3 per litre across India. The revision came amid rising global crude oil prices linked to tensions in West Asia.
The increase is the first major retail fuel revision in nearly four years. Fuel retailers said the move was necessary to offset losses caused by elevated crude prices.
In Delhi, petrol prices rose to ₹97.77 per litre from ₹94.77. Diesel prices increased to ₹90.67 per litre from ₹87.67. Similar hikes were recorded in Mumbai, Kolkata and Chennai.
The decision came days after Prime Minister Narendra Modi urged citizens to reduce fuel consumption and adopt austerity measures. He had appealed for reduced travel, higher use of public transport and energy conservation amid global economic uncertainty.
Impact on household budgets
The bold Petrol diesel price hike is expected to increase transportation and logistics costs. Analysts said the rise may also affect prices of essential goods in the coming weeks.
Consumers at fuel stations in several cities expressed concern over inflation and higher daily expenses. Transport operators also warned of increased operational costs.
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Why fuel prices were raised
Global crude oil prices surged after disruptions around the Strait of Hormuz. Brent crude crossed $120 per barrel before easing slightly this week. India imports a major share of its crude oil requirements, making domestic fuel prices sensitive to global supply shocks.
State-run firms including Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited jointly control most fuel stations in the country.
Officials said the companies had been absorbing losses for months despite rising crude costs.
The bold Petrol diesel price hike also triggered declines in shares of major oil marketing companies during early trade on Friday. Investors remained cautious over pressure on fuel retailers and global energy volatility.
