Petrol-Diesel: Another Major Blow to the Common Man; Prices Hiked for the Second Time in a Week…

New Delhi: The direct impact of the ongoing massive volatility in international crude oil prices—coupled with escalating military tensions in West Asia (the Middle East)—is now becoming evident in the pockets of Indian consumers. On Tuesday morning, the country’s state-owned oil companies announced yet another hike of approximately 90 paise per liter in the prices of petrol and diesel.

This comes as a double blow to the general public, as the oil companies had already implemented a significant hike of nearly ₹3 per liter just last Friday (May 15). This marks the second major increase in fuel rates within the span of a single week.

According to market analysts and industry sources, this price hike is a direct consequence of the ongoing diplomatic and military crises on the global stage. Driven by the escalating standoff between the US and Iran—and fears of supply disruptions along the Strait of Hormuz—international crude oil prices have remained consistently above the $100-per-barrel mark.

Consequently, Indian refining companies had been incurring heavy daily losses. Although the ₹3 hike implemented last week had helped reduce these losses by approximately 25 percent, the latest price revision has been undertaken to bridge the substantial gap between production costs and retail selling prices (known as “under-recovery”). Experts warn that if the global crisis does not subside soon, consumers may witness further price hikes—implemented in staggered increments—in the days to come.

What are the New Rates Across the Four Major Metros?

– In Delhi, petrol is now retailing at ₹98.64 per liter—reflecting an increase of 87 paise—while the price of diesel stands at ₹91.58 per liter, up by 91 paise. In the national capital, the price of petrol has risen from ₹97.77 per liter to ₹98.64 per liter. – In Mumbai, the price of petrol has risen by 91 paise to ₹107.59 per liter, while the price of diesel has increased by 94 paise to ₹94.08 per liter.

– Kolkata witnessed the steepest hike in petrol prices, rising by 96 paise to ₹109.70 per liter; meanwhile, the price of diesel increased by 94 paise to ₹96.07 per liter.

– In Chennai, the price of petrol has gone up by 82 paise to ₹104.49 per liter, and the price of diesel has risen by 86 paise to ₹96.11 per liter.

Direct Impact on Freight Transport and the General Budget

This cumulative hike—totaling approximately ₹4 in fuel prices within a single week—will have the most significant and direct impact on the freight transport and logistics sectors. The rising cost of diesel will drive up transportation costs for essential commodities, vegetables, fruits, and daily necessities across the country; consequently, a major surge in retail inflation could once again be witnessed in the coming weeks.