Fuel prices across India have increased once again, marking the third hike in the last 10 days and adding fresh pressure on household budgets, transportation costs, and overall inflation concerns.
The latest revision, which came into effect from 6 AM on May 23, has pushed petrol, diesel, and CNG prices higher across major cities including Delhi, Mumbai, Kolkata, and Chennai.
Under the new rates, petrol prices have increased by ₹0.87 per litre, while diesel prices have gone up by ₹0.91 per litre. CNG prices have also been raised by ₹1 per kilogram.
Following the revision, petrol in Delhi is now priced at ₹99.51 per litre, while diesel has reached ₹92.49 per litre. CNG prices in the national capital have climbed to ₹81.09 per kg.
Multiple Hikes
This is the third fuel price increase within a span of just 10 days.
Earlier hikes were announced on May 15 and May 19 for petrol and diesel, while CNG prices had already been increased on May 15 and May 17. The repeated revisions are now beginning to trigger wider concerns around inflation and rising living costs.
The increase comes despite recent assurances from the Ministry of Petroleum and Natural Gas that India has sufficient fuel supply and stable nationwide availability.
The ministry had recently stated that there was no need for panic buying and urged citizens to purchase fuel only according to actual requirements.
Global Pressure
The primary reason behind the continued increase in fuel prices is the sharp rise in global crude oil prices following escalating geopolitical tensions involving Iran and the broader Middle East region.
India, which imports a significant portion of its crude oil requirements, has witnessed a major jump in import costs over recent months. The average price of imported crude reportedly rose from nearly $69 per barrel earlier this year to over $113 per barrel in recent weeks.
The pressure has further intensified after earlier reductions in excise duties on petrol and diesel reduced the government’s tax cushion against global price volatility.
The rapid increase in international crude prices is now directly impacting domestic fuel retail pricing across the country.
Inflation Impact
The latest fuel hike is expected to have a wider ripple effect across the economy.
Transportation and logistics costs are likely to increase immediately, which could push up prices of vegetables, fruits, grocery items, and other daily-use essentials. Commercial transport operators may also revise freight charges due to higher diesel costs.
The agriculture sector could also face added pressure, as tractors, irrigation pumps, and several farming operations remain heavily dependent on diesel.
Public transportation expenses, including bus fares, auto-rickshaw charges, school transport, and taxi services, may also witness upward revisions in the coming days.
Economists and market observers believe sustained fuel inflation could once again contribute to broader retail inflation pressures, affecting both urban and rural consumers.
Consumer Concerns
The repeated fuel price hikes are already drawing concern among consumers and transport unions, especially at a time when households are dealing with elevated food prices and rising utility expenses.
With global crude oil volatility continuing and geopolitical tensions remaining uncertain, further fluctuations in fuel prices cannot be ruled out in the near term.
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