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New Delhi: State-run fuel retailers increased the prices of petrol by 87 paise and diesel by 91 paise on Saturday. Following this latest hike, petrol in New Delhi now costs Rs 99.51 per litre, while diesel is priced at Rs 92.49 per litre, according to fuel dealers.

This marks the third hike this month as the government attempts to offset losses from skyrocketing crude oil prices sparked by the conflict between the US and Iran. 

A report from Reuters, citing fuel dealers in Delhi, confirmed the development.

The price spike persists as global crude rates remain high due to Middle East tensions and fears of supply shortages following Iran's closure of the Strait of Hormuz in response to US-Israeli airstrikes.

Bleeding Fuel Prices

This latest adjustment follows a Rs 3 per litre hike on May 15 and a subsequent 90 paise increase on May 19. With this newest bump, overall fuel prices have risen by nearly Rs 5 per litre during this timeframe.

The fresh hike is expected to impact commuters, transport operators, and businesses across sectors. Experts warn that repeated increases in petrol and diesel prices could trigger a rise in transportation and logistics costs, eventually affecting the prices of essential commodities and food items. 

Public transport fares may also witness an upward revision if fuel prices continue to climb.

What Centre has said

The Centre has maintained that there is no shortage of fuel in the country and that India currently has adequate reserves to manage the ongoing global crisis. 

Union Petroleum Minister Hardeep Singh Puri had recently stated that prolonged high crude prices could significantly increase losses for oil marketing companies if retail prices are not revised periodically. 

Reports suggest public sector oil firms are already facing heavy under-recoveries due to the gap between international crude prices and domestic retail fuel rates.

What about CNG/PNG rates

Meanwhile, prices of CNG and PNG have also seen upward revisions in several cities over the past few days, intensifying concerns over inflation and rising living costs. The opposition has criticised the repeated hikes, accusing the government of passing the burden of global volatility onto common citizens.

Officials, however, argue that the revisions are necessary to balance rising import costs and maintain fuel supply stability amid continuing geopolitical uncertainty.