SRINAGAR: Petrol and diesel prices were increased by 90 paise per litre on Tuesday, the second increase in less than a week.
Petrol price was hiked to Rs 98.64 a litre from Rs 97.77 per litre in the national capital. Diesel now costs Rs 91.58 a litre against Rs 90.67 previously, according to industry sources.
This is the second increase in rates in less than a week. Prices were hiked by Rs 3 a litre on Friday.
In Delhi, petrol now retails at ₹98.64 per litre, up by 87 paise, while diesel is priced at ₹91.58 per litre, higher by 91 paise.
Mumbai saw petrol rise by 91 paise to ₹107.59 per litre and diesel by 94 paise to ₹94.08 per litre.
Kolkata recorded the steepest hike in petrol at 96 paise to ₹109.70 per litre, while diesel prices rose by 94 paise to ₹96.07 per litre.
In Chennai, petrol prices rose by 82 paise to ₹104.49 per litre, and diesel by 86 paise to ₹96.11 per litre.
Notably, the ongoing conflict in Iran has disturbed global oil supply. The earlier Rs 3 increase does not fully cover the losses of the oil marketing companies (OMCs). The companies had been selling fuel at old rates for nearly 10 weeks even as their costs kept rising. When their losses became unsustainable, the prices of petrol and diesel were raised last week.
The hike in petrol and diesel rates has a direct impact on the price of all daily-use commodities. Small traders, people in transport business, people who rely on public transportation, and those who use their own transport daily will bear the direct impact of the hike.
As fuel becomes more expensive, the cost of buses, taxis, and transportation increases, which in turn may push up the prices of other essential goods as well. Experts say that if crude oil prices continue to rise in the international market, petrol and diesel could become even more expensive in the coming days, raising concerns about higher inflation.
The ongoing conflict in West Asia is disrupting the global supply of crude oil. As a result, prices in the international market remain volatile. Since India imports a large portion of its fuel requirements, any fluctuation in the global market directly impacts fuel prices in the country.
A decline in the value of the Indian currency is another factor driving the fuel price hike. As the rupee’s value slides to 96 against the US dollar, India’s import bill rises. With oil imports becoming more expensive, costs for oil marketing companies also increase. A portion of this additional cost has been passed on to the public. On Sunday (May 17), CNG prices were also hiked by a rupee per kilogram in Delhi-NCR. This was the second increase after last Friday’s Rs 2 hike.
According to the latest report released on May 18 by the Petroleum Planning and Analysis Cell (PPAC) under the Petroleum Ministry, the outbreak of war in Middle East has pushed crude oil prices (Indian basket) sharply higher. The average price, which stood at $69.01 per barrel in February 2026, has surged to $110.73 per barrel as of May 15, 2026, amid 81 days of ongoing conflict.
This means that crude oil prices have risen by $41.72 per barrel compared to the February 2026 average — an overall increase of 60.45 per cent. India imports over 85 per cent of its crude oil requirements and nearly 60 per cent of its LPG from the international market. Of this, around 40 per cent of crude oil and 90 per cent of LPG used to reach India via the Strait of Hormuz.
However, due to tensions between the United States and Iran, the movement of cargo ships through the Strait of Hormuz has been severely disrupted. As a result, India’s overall expenditure on crude oil imports has increased by more than 60 per cent. -(Agencies)
