- Petrol and diesel prices increased by Rs 2.6 and Rs 2.7 per litre amid Middle East conflict
- Fuel prices in Delhi are Rs 102.12 for petrol and Rs 95.20 for diesel as of May 25
- State oil firms incur losses of Rs 1,600-1,700 crore daily, totaling Rs 1 lakh crore in 10 weeks
The prices of petrol and diesel have been hiked by Rs 2.6 and Rs 2.7 per litre as a rally in global oil prices due to ongoing conflict in the Middle East has impacted oil marketing companies significantly. Indian consumers are facing a sharp rise in fuel expenses once again, with petrol prices in several cities racing towards the Rs 114-per-litre mark after the latest hike, exposing the widening gap in fuel costs across states.
State-owned oil firms are incurring losses Rs 1,600-1,700 crore per day, over Rs 1 lakh crore in 10 weeks amid the crisis.
Petrol and diesel prices were raised for the fourth time in less than 10 days on Saturday, with rates increasing by around Rs 8 per litre. In Delhi, petrol is now priced at Rs 102.12 per litre. Diesel prices have also risen, climbing to Rs 95.20 per litre.
Petrol prices on May 25
- Petrol price in Delhi : Rs 102.12/litre
- Petrol price in Kolkata : Rs 113.51/litre
- Petrol price in Mumbai : Rs 111.21/litre
- Petrol price in Chennai : Rs 107.77/litre
- Petrol price in Hyderabad: Rs 115.69/litre
- Petrol price in Bengaluru: Rs 110.93/litre
Diesel prices on May 25
- Diesel price in Delhi : Rs 95.20/litre
- Diesel price in Kolkata : Rs 99.82/litre
- Diesel price in Mumbai : Rs 97.83litre
- Diesel price in Chennai: Rs 99.55/litre
- Diesel price in Hyderabad : 103.82/litre
- Diesel price in Bengaluru: 98.80/litre
Global Oil Prices
Oil prices continued to decline after sharp losses last week. U.S. crude fell more than 8% over the previous week after Trump said he had halted planned airstrikes against Iran to allow additional time for talks. Brent crude dropped more than 5% during the same period. Oil prices have surged more than 30% since the United States and Israel launched attacks on Iran on Feb. 28.
On Monday, West Texas Intermediate crude futures fell about 5% to $91.65 a barrel. Brent crude futures also declined around 5% to $98.30 a barrel.
What Drives Petrol and Diesel Prices?
Fuel prices in India depend on several factors, with global crude oil prices being the most significant as crude is the primary raw material used to produce petrol and diesel.
The rupee–dollar exchange rate also influences fuel prices since India imports a large portion of its crude oil requirements. Additionally, central excise duty and state-level VAT significantly affect the final retail price of petrol and diesel, which is why rates differ across cities.
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