Third fuel hike in 10 days pushes petrol, diesel closer to ₹100 mark

Petrol and diesel prices were raised again on May 23, marking the third increase in less than 10 days, as state-run oil companies continued passing on the impact of soaring global energy prices triggered by the escalating conflict in West Asia.

In Delhi, petrol became costlier by 87 paise, rising to ₹99.51 per litre, while diesel went up by 91 paise to ₹92.49 per litre.

The latest revision follows a ₹3-per-litre hike on May 15 and another 90-paise increase on May 19, taking the cumulative rise in fuel prices to nearly ₹5 per litre. It is the first increase in retail fuel prices in more than four years, with rates having remained unchanged since April 2022 except for a one-time cut ahead of the 2024 Lok Sabha elections.

The government and state-run oil marketing companies had so far absorbed the global price shock to shield domestic consumers. However, mounting pressure on public sector fuel retailers appears to have forced a partial pass-through.

The sharp rise in international crude prices has been linked to the ongoing West Asia conflict and the closure of the Strait of Hormuz, a critical maritime route that handles nearly 20% of global oil shipments. The disruption has rattled global energy markets and pushed crude prices above $100 per barrel from nearly $70 before the outbreak of hostilities involving Iran and the US.

Compressed Natural Gas prices in the Delhi-NCR region were also increased by ₹1 per kg on May 23.

The price hike came a day after the Ministry of Petroleum and Natural Gas sought to calm public concerns over supply shortages, assuring consumers that petrol and diesel stocks remain adequate across the country.

In a statement issued on May 22, the ministry said fuel supplies remained stable nationwide and urged citizens to avoid panic buying, advising them to purchase fuel only as per actual requirement.

Earlier, Prime Minister Narendra Modi had appealed to citizens to reduce fuel consumption, use public transport more frequently, and minimize gold purchases to help protect India’s foreign exchange reserves.