Indian OMCs Raise Petrol by 94 Paise and Diesel by 91 Paise

LCOLCO

OMCs raised petrol by 87–94 paise and diesel by 90–91 paise in metros, the third hike in under ten days, pushing New Delhi prices to ₹98.64 per litre for petrol and ₹92.49 for diesel. These follow an initial ₹3.00 per-litre increase on May 15 after months of frozen rates.

1. Third Consecutive Fuel Price Hike

State-run OMCs implemented their third retail fuel price adjustment in under ten days, increasing petrol by 87–94 paise per litre and diesel by 90–91 paise. This series of hikes began on May 15 with a ₹3.00 per-litre rise after a multi-year period of frozen domestic rates.

2. City-Specific Retail Pricing Levels

Following the latest revision, petrol in New Delhi trades at ₹98.64 per litre and diesel at ₹92.49, while in Mumbai petrol is priced at ₹95.02 and diesel at ₹108.49 per litre. Differences reflect local VAT schedules and state levies.

3. International Costs Drive Revisions

Sustained high Brent crude benchmarks and ongoing geopolitical tensions in West Asia have driven international oil purchase costs upward, prompting domestic price pass-through after months of under-recoveries absorbed by retailers.

4. Implications for Under-Recoveries and Margins

By lifting retail rates, state-run marketers will reduce subsidy burdens and narrow under-recoveries that built up as global crude costs climbed, potentially improving marketing margins in coming quarters.

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