The Centre has officially announced a major petrol diesel price hike in India, ending a four-year freeze on retail fuel prices. The revised fuel rates came into effect from Friday, May 15, and are expected to impact transportation costs and household budgets across the country. Alongside petrol and diesel, CNG prices have also been increased by Rs 2 per kg, making the petrol diesel price hike in India a significant economic development.
In Delhi, CNG prices have increased from Rs 77.09 per kg to Rs 79.09 per kg. A similar Rs 2 hike was introduced earlier in Mumbai Metropolitan Region (MMR), where CNG will now cost Rs 84 per kg.
Why Fuel Prices Were Increased
The latest petrol diesel price hike in India comes after state-run oil marketing companies faced heavy financial pressure due to rising global crude oil prices. Public sector fuel retailers including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum were reportedly suffering losses of nearly Rs 1,600 crore daily.
Although premium petrol and diesel prices were revised in March, regular retail fuel prices remained unchanged for consumers until now. Oil companies were purchasing crude oil at higher international rates but were unable to fully pass on the burden to consumers.
Reports suggest the government delayed the move earlier to keep inflation under control, as fuel prices directly affect transportation, food supply, and essential commodities.
Global Crude Oil Crisis Behind Hike
The ongoing tensions in West Asia significantly impacted global crude oil markets this year. Before the conflict intensified, India’s crude oil basket averaged around $69 per barrel in February. In the following months, prices surged to nearly $113–114 per barrel.
As losses continued to rise, economists and policy experts supported a fuel price revision. Finance Commission Chairperson Arvind Panagariya also stated that petrol and diesel prices should reflect international market conditions.
The new petrol diesel price hike in India is expected to influence inflation trends and increase operational costs for transport and logistics sectors in the coming weeks.
FAQs
Q: Why has the petrol diesel price hike in India been announced?
A: The fuel price revision was introduced due to rising international crude oil prices and increasing losses faced by oil marketing companies.
Q: How much has CNG price increased in Delhi?
A: CNG prices in Delhi have increased by Rs 2 per kg and now stand at Rs 79.09 per kg.
Q: Will the petrol diesel price hike in India affect inflation?
A: Yes, higher fuel prices usually increase transportation and logistics costs, which can impact prices of goods and services.
Q: Which companies were impacted before the petrol diesel price hike in India?
A: Indian Oil, Bharat Petroleum, and Hindustan Petroleum were among the companies reportedly facing heavy daily losses.
