Petrol and diesel prices have been increased for the third time in nine days as state-owned oil marketing companies continue to adjust retail rates in response to rising international crude oil costs and widening under-recoveries in the domestic market. The latest revision, implemented on Saturday, also affected CNG prices in several regions, reflecting continued volatility in global energy markets.
In Delhi, petrol prices have risen from Rs 94.77 per litre to Rs 99.51 per litre over the past nine days, marking an increase of Rs 4.74 per litre. Diesel prices have also climbed sharply from Rs 87.67 per litre to Rs 92.49 per litre during the same period, registering an overall rise of Rs 4.82 per litre. The hikes have been implemented in phases, with multiple revisions occurring within short intervals.
The first increase in this cycle was recorded on May 15, followed by another adjustment on May 19, and the latest revision on May 23. Officials and market observers note that the staggered price changes reflect a calibrated approach by oil companies attempting to gradually pass on global cost pressures to consumers while avoiding sudden shocks in retail fuel prices.
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A key factor driving the increase is the sharp rise in global crude oil prices, triggered by geopolitical tensions in the Middle East and disruptions in major shipping routes, including the Strait of Hormuz. Reports indicate that a significant share of India’s crude, LNG, and LPG imports pass through this route, making the country particularly sensitive to supply chain instability in the region.
According to data from the Petroleum Planning and Analysis Cell (PPAC), the Indian basket of crude oil has risen from around $69.01 per barrel in February 2026 to over $109 per barrel by late May, reflecting an increase of more than 58%. This surge has significantly increased import costs for India, which depends on overseas sources for over 85% of its crude oil requirements.
Despite recent excise duty reductions by the central government aimed at easing consumer burden, oil marketing companies continue to report substantial under-recoveries. Meanwhile, state governments have maintained value-added tax (VAT) rates on fuel, which also contributes to high retail prices. Industry analysts suggest that further price volatility may continue if global crude oil markets remain unstable.
Also Read: India Hikes Petrol, Diesel And CNG Prices Amid Global Oil Supply Concerns