New Delhi: Petrol and diesel prices in India have been increased by around ₹3 per litre as the government and state-run oil marketing companies struggle to manage the impact of rising global crude oil prices triggered by the ongoing conflict in West Asia.
The latest revision marks the first major hike in fuel prices in nearly four years and comes amid growing concerns over disruptions in global oil supply routes, particularly through the Strait of Hormuz — a key maritime passage that handles a significant share of the world’s crude oil trade.
According to reports, Brent crude prices have surged sharply in recent weeks due to escalating tensions linked to the US-Iran conflict. India, which imports a major portion of its crude oil requirements, has been directly affected by the spike in international energy prices.
State-owned oil companies including Indian Oil, BPCL and HPCL had reportedly been absorbing heavy losses for several weeks despite rising procurement costs. Reuters reported that these firms faced mounting financial pressure as crude prices crossed the $120-per-barrel mark during the crisis.
RBI Governor Sanjay Malhotra recently indicated that retail fuel prices in India could increase further if tensions in the Middle East continue for a prolonged period. He warned that the crisis could impact inflation, supply chains and the broader economy.
Following the hike, petrol prices in Delhi have climbed to around ₹97.77 per litre, while diesel rates have also risen significantly. Experts believe the increase could affect transportation costs and eventually push up prices of essential commodities across the country.