Petrol and diesel prices were raised by 90 paise per litre on Tuesday, marking the second increase in fuel rates in less than a week. In the national capital, petrol now costs Rs 98.64 per litre, up from Rs 97.77, while diesel prices climbed to Rs 91.58 per litre from Rs 90.67, as per industry sources to PTI.
The latest hike follows a sharp Rs 3 per litre increase implemented on Friday.
In Delhi, petrol is now priced at Rs 98.64 per litre, up by 87 paise, while diesel costs Rs 91.58 per litre after a hike of 91 paise. Mumbai saw petrol prices rise by 91 paise to Rs 107.59 per litre, with diesel up 94 paise at Rs 94.08 per litre.
Kolkata recorded the steepest increase in petrol prices, which climbed 96 paise to Rs 109.70 per litre, while diesel prices there rose by 94 paise to Rs 96.07 per litre. In Chennai, petrol prices increased by 82 paise to Rs 104.49 per litre, and diesel rose by 86 paise to Rs 96.11 per litre.
Oil marketing companies (OMCs) raised fuel prices as they face mounting losses amid elevated crude prices triggered by the Middle East conflict. According to the government, OMCs are staring at losses of Rs 1–1.2 lakh crore in Q1FY27, translating into daily losses of around Rs 1,100–1,300 crore.
India's daily fuel consumption stands at about 463 million litres, including 308 million litres of diesel and 155 million litres of petrol. With OMCs controlling nearly 90% of the retail fuel market, roughly 417 million litres are sold daily through their pumps.
A price hike of Rs 0.9 per litre helps OMCs recover about Rs 38 crore a day, while the last two increases together are expected to aid recovery of around Rs 163 crore daily, offsetting roughly 12.5–14.8% of their losses.
Every Rs 0.5 per litre improvement in fuel margins boosts EBITDA by about 7% for IOCL, 8% for BPCL and 11% for HPCL, underscoring the earnings sensitivity to fuel price adjustments.
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