Petrol, Diesel Prices Hiked Again by ~90 Paise; More Increases Expected, Say Analysts

Fuel prices were raised for the second time in a week on Tuesday, with petrol and diesel prices going up by around 90 paise per litre across major Indian cities — a move that analysts and brokerages had flagged as inevitable.

In Delhi, petrol now costs ₹98.64 a litre (up ₹0.87), while diesel is priced at ₹91.58 (up ₹0.91). Mumbai saw petrol rise to ₹107.59 (+₹0.91) and diesel to ₹94.08 (+₹0.94). In Kolkata, petrol touched ₹109.70 (+₹0.96) and diesel ₹96.07 (+₹0.94), while Chennai saw petrol at ₹104.49 (+₹0.82) and diesel at ₹96.11 (+₹0.86).

The latest hike follows a ₹3 per litre increase earlier this month — and even that, experts warned, was nowhere near enough. Bank of America noted that the ₹3/litre hike was significantly below the ₹5–10 per litre increase many investors had anticipated, and covered only about one-third of the transport fuel losses currently being absorbed by oil marketing companies (OMCs). 

The brokerage expects hikes to continue in a phased manner — daily or weekly — particularly if crude oil prices remain elevated, and is currently factoring in a cumulative 10–15% fuel price increase assuming crude averages around $95 per barrel.  Brent crude has already crossed $103 a barrel amid geopolitical tensions and supply concerns, piling pressure on domestic fuel retailers.

On inflation, Bank of America estimated the latest hike could push India’s CPI higher by around 15 basis points over May and June, though it maintained its FY27 headline CPI forecast at 5.2% year-on-year, suggesting the impact could remain contained if increases are gradual. 

Among OMCs, HPCL is expected to be the biggest beneficiary of the price revisions, followed by BPCL.  Analysts believe the hikes will help narrow under-recoveries that have been building as crude oil prices climbed.

With crude still firm and OMC losses only partially covered, consumers should brace for fuel prices to keep rising in the weeks ahead.