New Delhi, May 25 -- Petrol and diesel prices rose again on Monday, the fourth time in less than two weeks, as state-run oil companies continued passing on the cost of higher global crude oil prices to consumers.

In Delhi, petrol now costs Rs 102.12 per litre, up from Rs 99.51, while diesel climbed to Rs 95.20 from Rs 92.49. Since May 15, the cumulative increase has reached nearly Rs 7.5 per litre across both fuels. Monday's revision alone added Rs 2.61 per litre to petrol and Rs 2.71 to diesel.

Prices are now at their highest since May 2022. They had remained mostly unchanged for over two years, except for a Rs 2 per litre cut in March 2024, which came ahead of national elections.

The hikes have been phased in steps. Retail prices were first raised by Rs 3 per litre on May 15, followed by a 90-paise increase on May 19, and another round on May 23 when petrol went up by 87 paise and diesel by 91 paise per litre.

Prices differ across cities because of state taxes. After Monday's revision, petrol in Mumbai stands at Rs 111.21 per litre and diesel at Rs 97.83. In Kolkata, petrol costs Rs 113.51 and diesel Rs 99.82. Chennai residents are paying Rs 107.77 for petrol and Rs 99.55 for diesel.

Global crude oil prices rose more than 50 per cent from late February after US-Israeli strikes on Iran disrupted shipping through the Strait of Hormuz, a major oil transit route. State-run retailers had held back passing on those higher costs for several weeks.

On Monday, however, crude prices fell sharply after the United States and Iran agreed in principle to reopen the Strait of Hormuz, with Brent crude dropping more than 5 per cent.

The three state-owned fuel retailers, Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum, together control about 90 per cent of India's fuel market. Despite the price increases, petrol, diesel and domestic cooking gas LPG are still being sold at a loss. Jet fuel rates have been kept on hold.

Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said losses were running close to Rs 600 crore per day, down from Rs 1,000 crore before May 15.

Since mid-May, domestic LPG prices have also gone up by Rs 60 per 14.2-kg cylinder, and compressed natural gas by Rs 4 per kg.

Finance Minister Nirmala Sitharaman, speaking in Mumbai, said the revision was a market-driven decision by oil marketing companies. She said the government had already contributed by forgoing over Rs 1 lakh crore annually in tax revenues through excise duty cuts of Rs 10 per litre on petrol and diesel.

Private retailers have also revised prices. Nayara Energy raised petrol and diesel prices by Rs 5 and Rs 3 per litre respectively in March. Shell raised petrol prices by Rs 7.41 and diesel by as much as Rs 25 per litre from April 1. Jio-bp aligned its pump prices with state-run firms.

Congress leader Rahul Gandhi criticised the timing of the increases, saying prices were being raised in instalments after state elections concluded. "Petrol and diesel prices are being increased in instalments so that people's pockets are quietly picked," he wrote on social media.

Congress president Mallikarjun Kharge alleged the government had collected Rs 43 lakh crore over 12 years as petrol prices rose from Rs 71.41 per litre in 2014 to Rs 102.12 today, and diesel from Rs 56.71 to Rs 95.20.

The first increase on May 15 came days after the BJP won three of five state and union territory elections, including West Bengal.

India's retail inflation stood at 3.48 per cent in April, up from 3.40 per cent in March. Wholesale inflation rose to an over three-year high of 8.3 per cent, driven by fuel and energy costs. The fuel hikes are expected to push up transportation and logistics costs further.

Prime Minister Narendra Modi last week called on citizens and government departments to conserve fuel, consider remote working and cut non-essential travel, as higher energy prices strain foreign exchange reserves and risk widening the current account deficit. Several state governments have already asked departments to reduce travel and office attendance.

Published by HT Digital Content Services with permission from Millennium Post.