OMCs Raise Petrol Price By Rs 2.61 Per Litre, Diesel By Rs 2.71, Fourth Hike In Two Weeks

New Delhi, May 25 (KNN) Oil Marketing Companies (OMCs) on Monday increased petrol prices by Rs 2.61 per litre and diesel prices by Rs 2.71 per litre, marking the fourth fuel price hike since revisions resumed on May 15 after a prolonged freeze.

With the latest increase, cumulative hikes in petrol and diesel prices have reached nearly Rs 7.5 per litre over the past 11 days, reflecting mounting pressure on public sector fuel retailers amid elevated global crude oil prices and a weakening rupee.

In Delhi, petrol prices have risen to Rs 102.12 per litre from Rs 99.51, while diesel prices now stand at Rs 95.20 per litre compared to Rs 92.49 earlier, reported Economic Times.

Global Crude Volatility and West Asia Tensions Drive Costs Higher 

The latest revision comes as oil companies continue to grapple with higher import costs triggered by sustained volatility in international crude markets and geopolitical tensions in West Asia.

Senior executives from state-run energy firms recently indicated that the increase in fuel prices was driven by prolonged disruptions in global energy supply chains, rising crude oil prices and growing under-recoveries faced by OMCs.

Months of disruptions and blockades in the Strait of Hormuz have heightened concerns over global energy shipments, affecting countries such as India that rely heavily on crude imports from the Middle East.

Speaking on the impact of the ongoing West Asia conflict, ONGC Director (Exploration) Sushma Rawat said crude oil prices have remained highly volatile due to uncertainty surrounding the geopolitical situation.

She noted that crude prices tend to decline whenever prospects of a peace agreement emerge but rise again when hopes of a resolution fade.

Oil Firms Face Rising Losses Amid Import Dependence 

Rawat also stated that the government had shielded consumers from the full impact of soaring global energy prices for nearly 76 days before the recent revisions became unavoidable.

According to her, OMCs were incurring losses of nearly Rs 1,000 crore per day during the period when fuel prices remained unchanged, making the situation financially unsustainable.

Former BPCL Marketing Director Sukhmal Kumar Jain also highlighted the financial strain on public sector oil companies, saying that crude oil prices had climbed sharply from around USD 65–70 per barrel to nearly USD 110–115 per barrel during the conflict period.

He noted that India's dependence on imports for nearly 85 percent of its crude oil requirements has amplified the impact of rising global prices on the domestic economy.

Jain added that the depreciation of the rupee against the US dollar has further increased the burden on oil companies by raising the cost of imports.

"The situation for the oil companies is that the cost is more and the recovery is less," he observed.

Price Revisions Follow Earlier Hike 

The latest revision follows an earlier increase on May 23, when petrol prices were raised by Rs 0.87 per litre and diesel prices by Rs 0.91 per litre.

State-run OMCs have maintained that sustained under-recoveries and rising input costs necessitated the recent adjustments in fuel prices despite efforts to protect consumers from the full impact of global market fluctuations.

(KNN Bureau)