Petrol, diesel prices hiked by over ₹2.5 each; 4th hike in 10 days

Petrol prices have been increased by Rs. 2.61 in Delhi from ₹99.51 to Rs. 102.12, while diesel prices have risen by Rs. 2.71, from ₹92.49 to ₹95.20.

State-run oil companies on Monday raised petrol prices by ₹2.61 per litre and diesel prices by ₹2.71 per litre, taking the cumulative revision over the last two weeks to about ₹7.35 and ₹7.53 per litre for petrol and diesel, respectively.

Following Monday’s price hike, petrol is being sold at ₹102.12 per litre and diesel at ₹95.20 a litre in Delhi.

This is the first time in four years (after May 21, 2022, when petrol sold for ₹105.41 per litre) that the retail price of petrol has crossed the ₹100 mark. At the time, the international benchmark Brent crude was at $112.55 a barrel.

On Friday, Brent crude was at $103.54 a barrel and dropped sharply in early trade to $99.36 a barrel on Monday amid hopes that the ongoing conflict situation in West Asia may be resolved soon, resuming the transportation of oil and gas supplies through the Strait of Hormuz. This sea-route transports one-fifth of global energy supplies.

Industry executives and sector analysts say the incremental hike cycle is unlikely to end soon, as state-run oil companies are not only recovering current revenue losses on petrol and diesel but also recouping their past under-recoveries on auto fuels and cooking gas.

Because of assembly elections, the state-run oil firms did not raise prices immediately after the war broke out in West Asia on February 28, they said, requesting anonymity. Brent surged to nearly $120 a barrel on March 9, about 65% jump from $72.87 on February 27.

According to independent experts, after four revisions, the three state-run oil marketing companies’ (OMCs) revenue losses on petrol and diesel fell below ₹10 a litre each. Executives of OMCs, however, peg petrol and diesel under-recoveries higher without disclosing exact numbers. Experts say they could also be factoring in losses from liquefied petroleum gas (LPG, or cooking gas).

The trajectory of under-recoveries illustrates the partial nature of each correction: daily losses across the three companies stood at ₹1,000 crore before the first hike on May 15, fell to ₹750 crore after the second on May 19, and are now estimated to have dropped significantly below ₹500 crore after Monday’s revision. A fifth hike is expected unless Brent stabilises below $100 a barrel — and, in the best-case scenario cited by analysts, closer to $70.

Benchmark Brent closed at $103.54 on Friday, up 0.9% on the day but down from the $108-plus levels seen at the time of the first May 15 hike — a decline that makes the continued corrections harder to defend politically. Since the conflict broke out on February 28, Brent has risen roughly 42% from $72.87. The rupee gained for a second consecutive session on Friday, closing at ₹95.60 per dollar, helped by softening crude and anticipation of monetary policy intervention.

The hike comes against a striking financial backdrop. Despite absorbing the full impact of the West Asia conflict in the January–March 2026 quarter (the crisis began on March1 ), the three OMCs posted a combined net profit of ₹19,470 crore — a 40.74% rise over the same period last year.

For the full year 2025–26, their combined net profit surged 130% to ₹77,280.65 crore from ₹33,601.57 crore in 2024–25, driven by stable crude prices and healthy refining margins for much of the year before the conflict erupted. IOC and HPCL posted strong quarterly profits; BPCL’s remained flat.

The increases follow the same incremental pattern as in April 2022, when retail prices rose by roughly ₹9 per litre in daily 80 paise steps in the aftermath of Russia’s invasion of Ukraine. That revision took just over a week. The current cycle has moved at a comparable pace, though the under-recovery gap is larger and the crude price environment remains more volatile.

Prices in metros

Petrol in Delhi now stands at ₹102.12 per litre — up ₹2.61 — and diesel at ₹95.20, up ₹2.71. Across metros, petrol has risen to ₹113.51 in Kolkata (up ₹2.87), ₹111.21 in Mumbai (up ₹2.72), and ₹107.77 in Chennai (up ₹2.46).

Diesel is ₹95.20 per litre in Delhi, ₹99.82 in Kolkata, ₹97.83 in Mumbai, and ₹99.55 in Chennai, with increases of ₹2.71, ₹2.80, ₹2.81, and ₹2.57 per litre, respectively. Variations in local levies account for city-to-city differences.