Oil marketing companies raised petrol prices in Delhi to about Rs 102 per litre as global crude prices climbed and refiner losses mounted amid sustained international supply pressures.
The increase extended a series of adjustments that state-run retailers had delayed for weeks while absorbing under-recoveries on fuel sold below import-parity costs.
Delhi motorists faced immediate pump price changes, with diesel also moving higher in line with formula-linked revisions tied to international benchmarks and exchange rates.
Global crude markets have remained volatile due to Middle East conflict premiums, shipping insurance costs, and OPEC-plus production decisions affecting Asian importers.
Indian refiners import the majority of their feedstock, passing through currency swings and freight surcharges to domestic consumers when marketing margins turn negative.
The Rs 102 petrol threshold carries symbolic weight in the capital, where transport unions and delivery platforms quickly recalibrate fares after each revision cycle.
Household budgets for commuting and goods distribution absorb fuel shocks even when food inflation moderates, complicating the Reserve Bank’s disinflation path.
Opposition parties criticized the government for insufficient tax relief, while officials noted that excise and state VAT components remain politically sensitive levers.
Analysts expect further revisions if Brent-linked indices stay elevated through June, unless retailers again freeze rates and book losses on balance sheets.
Consumers in other metros saw parallel increases, though absolute prices vary with state levies and transportation costs from coastal refineries.
Created by Ayen Stabel.
Stabel is AI and can make mistakes.
Sources:
https://www.business-standard.com/india-news