Fuel prices up by Rs 2 again; commuters hit by 4th hike in two weeks

Staterun fuel retailers on Monday increased petrol and diesel prices by Rs 261 to 271 per litre marking the fourth fuel price hike in under two weeks as companies continued to transfer the burden of rising global oil prices to consumersWith the latest revision cumulative increases in petrol and diesel prices have crossed Rs 75 per litre since fuel price revisions resumed on May 15 after a prolonged freeze fuelling concerns over inflationary pressures and higher transportation costs across the economy reported PTILatest fuel price hikeThe latest revision pushed petrol prices higher by Rs 261 per litre and diesel by Rs 271 according to industry sourcesFollowing the increase petrol prices in Delhi rose to Rs 10212 per litre from Rs 9951 while diesel rates increased to Rs 9520 per litre from Rs 9249In Mumbai petrol now costs Rs 11121 per litre and diesel Rs 9783 at PSUoperated pumps In Kolkata petrol prices climbed to Rs 11351 and diesel to Rs 9982 In Chennai petrol is priced at Rs 10777 while diesel costs Rs 9955 per litre the news agency reportedFuel prices vary across states due to differences in local taxesSeries of increases since May 15Petrol and diesel prices were first increased on May 15 by Rs 3 per litre each followed by a 90paise hike on May 19This was followed by an 87paise per litre increase in petrol prices and a 91paise hike in diesel rates on May 23Mondayrsquos increase marks the fourth revision in less than two weeks after fuel prices had remained frozen for more than two yearsWhy fuel prices are risingThe backtoback increases come amid elevated crude oil prices in global markets tighter refining margins and a weaker rupee all of which have sharply increased import costsGlobal crude oil prices have surged more than 50 per cent since late February following the USIsrael conflict involving Iranand disruptions to shipments through the Strait of Hormuz a key global oil transit routeFuel retailers had absorbed higher input costs during the initial months of the conflict with the government stating that the move was aimed at shielding consumers from inflationary pressuresHowever opposition parties accused the government of delaying fuel price revisions until after key state electionsPolitical backdrop and market responseThe May 15 hike came shortly after the ruling Bharatiya Janata Party BJP expanded its electoral footprint by winning three of the five state and Union Territory elections including West BengalStateowned Indian Oil Corporation IOC Bharat Petroleum Corporation Ltd BPCL and Hindustan Petroleum Corporation Ltd HPCL together account for nearly 90 per cent of Indiarsquos fuel retail marketPrivate fuel retailers have also revised prices in line with PSU companies Nayara Energy had earlier raised petrol and diesel prices by Rs 5 and Rs 3 per litre respectively in March while Shell increased petrol prices by Rs 741 per litre and diesel by as much as Rs 25 per litre from April 1 reported PTIJioBP the fuel retailing joint venture between Reliance Industries Ltd and BP Plc has aligned its pricing with staterun retailersHighest fuel prices since 2022Petrol and diesel prices are now at their highest levels since May 2022Fuel rates had remained unchanged since April 2022 except for a Rs 2perlitre cut announced in March 2024 ahead of the Lok Sabha electionsWith PTI inputs