Fuel prices climbed sharply on Monday as state-run oil marketing companies (OMCs) raised petrol by ₹2.61 per litre and diesel by ₹2.71 per litre, marking the fourth revision within 10 days. The latest increase has pushed petrol prices in Delhi to ₹102.12 per litre and diesel to ₹95.20.
With this round of revisions, petrol has once again breached the ₹100 mark in the national capital for the first time since May 21, 2022, when it was priced at ₹105.41 per litre.
Cumulative hike widens burden
Over the past two weeks, petrol prices have risen by about ₹7.35 per litre, while diesel has gone up by ₹7.53 per litre. The pace and frequency of the hikes resemble the pattern seen in 2022, when rates were revised almost daily following global disruptions.
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The upward revision comes despite some softening in global crude prices. Brent crude stood at $103.54 a barrel on Friday and slipped to $99.36 in early Monday trade. The dip is linked to expectations of easing tensions in West Asia, which could restore oil and gas movement through the Strait of Hormuz, a route that carries nearly one-fifth of global energy supplies.
However, since the conflict began on February 28, Brent has climbed roughly 42% from $72.87, with a peak near $120 per barrel recorded on March 9.
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Under-recoveries and pricing strategy
As per a Hindustan Times (HT) report, industry executives and sector analysts say the incremental hike cycle is unlikely to end soon, as state-run oil companies are not only recovering current revenue losses on petrol and diesel but also recouping their past under-recoveries on auto fuels and cooking gas.
According to the HT report, independent experts said that losses on petrol and diesel have narrowed to below ₹10 per litre after the recent revisions. Daily losses for the three OMCs have also reduced significantly, from nearly ₹1,000 crore before the first hike on May 15 to under ₹500 crore after the latest increase.
A fifth revision may be on the cards unless Brent crude stabilises below $100 per barrel, with analysts suggesting that a level closer to $70 would offer more relief.
Election timing and delayed revisions
Because of assembly elections, the state-run oil firms did not raise prices immediately after the war broke out in West Asia on February 28, they said, requesting anonymity.
Despite volatility in global crude prices, the three OMCs reported a combined net profit of ₹19,470 crore in the January–March 2026 quarter, up 40.74% from the same period last year.
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For the full financial year 2025–26, their combined profit surged 130% to ₹77,280.65 crore, supported by stable crude rates earlier in the year and strong refining margins.
City-wise fuel prices
Prices continue to vary across metros due to differences in local taxes. Petrol now costs ₹113.51 per litre in Kolkata, ₹111.21 in Mumbai, and ₹107.77 in Chennai.
Diesel prices stand at ₹99.82 per litre in Kolkata, ₹97.83 in Mumbai, and ₹99.55 in Chennai, following similar increases across cities.
