Petrol, diesel prices hiked by ₹3 per liter
What's the story
In a major development, petrol and diesel prices have been hiked by ₹3 per liter each. The hike was announced on Friday as oil marketing companies (OMCs) passed on part of the surge in global energy prices to consumers. This is the first major price revision since April 2022 when OMCs had raised fuel prices by ₹10 per liter.
Price details
New prices in Delhi
The new prices will be effective immediately. In Delhi, petrol will now cost ₹97.77 per liter, up from the previous ₹94.77. Diesel's price has also been hiked to ₹90.67 per liter from ₹87.67 earlier. The retail selling price of petrol and diesel has also been revised in Mumbai, Kolkata, Chennai and other cities with similar hikes across the board. Notably, Kolkata recorded the sharpest rise in petrol prices, which increased by ₹3.29 to ₹108.74 per liter.
Inflation
Petrol inflation skyrocketed from 2.5% to 32.4%
State-owned oil companies had kept fuel prices unchanged for 11 weeks despite rising input costs. The current uptick stems from a dramatic spike in wholesale fuel costs during April, driven by price hikes in crude petroleum, natural gas, and retail fuels. According to data released Thursday, petrol inflation skyrocketed from 2.5% to 32.4% in just one month, while high-speed diesel followed a similar trajectory, accelerating from 3.62% to 25.19%.
Financial impact
Oil companies staring at ₹1-1.2 lakh crore losses
Public sector oil marketing companies are staring at ₹1-1.2 lakh crore losses in Q1 FY26-27 due to the ongoing conflict between the US and Iran in West Asia. Petroleum Minister Hardeep Singh Puri has said these companies may not be able to bear daily losses of ₹1,000 crore from selling petrol and diesel below market price.