Fuel prices were increased across the country on Friday, effective immediately, with oil marketing companies raising petrol and diesel rates by up to Rs 3 per litre amid continued volatility in global crude oil markets.
In the national capital, petrol will now be sold at Rs 97.77 per litre after a hike of Rs 3, while diesel prices have gone up to Rs 90.67 per litre.
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The latest revision comes as state-run fuel retailers adjusted prices to offset rising international energy costs.
Petrol diesel price in metro cities
Among the four metro cities, Kolkata recorded the sharpest rise in petrol prices, which climbed by Rs 3.29 to Rs 108.74 per litre. In Mumbai, petrol rates increased by Rs 3.14 to Rs 106.68 per litre, while Chennai saw a rise of Rs 2.83, taking the price to Rs 103.67 per litre.
Diesel prices also witnessed a similar upward revision.
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In Kolkata, diesel now costs Rs 95.13 per litre after an increase of Rs 3.11. Mumbai recorded a hike of Rs 3.11, pushing diesel prices to Rs 93.14 per litre. In Chennai, diesel rates rose by Rs 2.86 to Rs 95.25 per litre.
In addition, LNG prices were also raised by Rs 2 per kg.
The increase follows a sharp jump in wholesale fuel inflation in April, driven by higher prices of crude petroleum, natural gas, petrol, diesel and LPG.
Data released on Thursday showed petrol inflation surged to 32.4% from 2.50% a month earlier, while inflation in high-speed diesel accelerated to 25.19% from 3.62% the previous month.
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Brent crude oil prices have surged to elevated levels following the ongoing US-Israel-Iran conflict that began on February 28. At its peak, Brent has remained around or above the $100 per barrel mark, driven by concerns over instability in the Strait of Hormuz and uncertainty around a durable ceasefire.
Oil cos under pressure
State-run oil marketing companies are also facing mounting financial pressure as global crude prices remain elevated due to disruptions caused by the ongoing conflict in West Asia.
Industry estimates suggest public sector refiners have been losing nearly Rs 10 billion per day on fuel sales as retail prices failed to keep pace with rising import costs over recent months, said a report by Bloomberg News.
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According to Bloomberg News' industry sources, oil companies had been absorbing a large part of the increase to avoid a sharper burden on consumers and the broader economy.
The losses reportedly widened in April and May after refiners exhausted lower-cost fuel inventories accumulated earlier in the year.
India, the world’s third-largest oil consumer, has been particularly vulnerable to disruptions in energy supplies linked to tensions around the Strait of Hormuz, a crucial route for crude shipments. Rising freight, logistics and input costs have also increased pressure on fuel retailers and manufacturers across sectors.
