Petrol reaches over 113.50 in Kolkata, Diesel nears century as fuel prices hiked again

India is witnessing a sharp surge in transportation costs as state-run oil marketing companies implemented the fourth fuel price hike in less than two weeks this Monday. Petrol has become costlier by Rs 2.61 per litre, while diesel prices saw an even steeper increase of Rs 2.71 per litre. This latest revision brings the cumulative increase to nearly Rs 7.5 per litre since price adjustments resumed on May 15, ending an extended freeze that had lasted nearly four years. The hike has pushed fuel prices to their highest levels since May 2022, significantly straining household budgets across the country.

The price surge is a direct consequence of volatile global energy markets and a weakening rupee, which have significantly inflated import costs for retailers like IOC, BPCL, and HPCL. Global crude oil prices have jumped over 50% since late February, largely driven by geopolitical instability following US-Israeli strikes on Iran and subsequent supply disruptions in the Strait of Hormuz. While retailers initially absorbed these rising input costs to shield consumers from inflation during the early months of the conflict, the sustained high prices have finally necessitated a series of aggressive retail revisions.

Across major metros, the impact is visible at the pumps, with prices varying due to local state taxes. In Delhi, petrol now retails at Rs 102.12 and diesel at Rs 95.20. Kolkata has recorded some of the highest rates, with petrol reaching Rs 113.51 and diesel nearing the century mark at Rs 99.82. Private retailers, including Nayara Energy and Shell, have aligned their rates with public sector hikes, following their own independent increases earlier this year. As fuel prices continue their upward trajectory, consumers are bracing for a secondary inflationary impact on essential goods and services.