Fuel prices surge again in India. State-owned oil marketing companies raised petrol and diesel prices by 90 paise per litre on Tuesday, marking the second increase in less than a week. Petrol in New Delhi climbed to 98.64 rupees per litre from 97.77, while diesel reached 91.58 from 90.67. This follows a 3 rupee per litre hike announced on May 15. The increases reflect mounting losses for OMCs driven by surging global crude oil prices, with geopolitical tensions in Iran and disruptions at the Strait of Hormuz pushing costs higher. Fuel prices had remained stable since March 2024, making these the first increases since April 2022. Industry analysts warn that if crude remains between 120 to 125 dollars per barrel, marketing margins could turn negative, resulting in losses of 14 rupees per litre for petrol and 18 rupees for diesel.
