People across India woke up to another rise in petrol and diesel prices on Saturday as fuel rates were increased for the third time in May. The latest increase comes at a time when global oil prices remain unstable due to tensions in the Middle East and concerns about crude oil supply. The new hike is expected to affect daily travel, transport costs and household budgets.
According to the latest revision, petrol prices have increased by 87 paise per litre while diesel prices have gone up by 91 paise per litre. This is the third fuel price increase in the month. Earlier, prices had already been raised by nearly 90 paise per litre on May 19. Before that, on May 16, fuel rates saw a sharp increase of around Rs 3 per litre.
The repeated increase in fuel prices has raised concerns among ordinary people because petrol and diesel are used in almost every part of daily life. Fuel prices directly affect transportation, delivery services, public travel and the cost of goods sold in markets. When fuel becomes expensive, the prices of vegetables, food items, goods and services often rise too.
Oil marketing companies revise fuel prices based on international crude oil rates, taxes, transportation charges and market conditions. This time, experts say international developments are playing a major role in the rise.
The increase comes when crude oil prices across the world are moving sharply due to uncertainty in West Asia. Political instability, military tensions and concerns over oil supply routes have affected global energy markets. Investors and oil traders are closely watching developments in the region because any disruption in supply can immediately push oil prices higher.
For many months, fuel prices in India remained mostly stable despite rising global crude prices. However, oil companies have now started increasing prices again as international crude oil costs remain high.
People who travel long distances daily, especially office workers, transporters, taxi drivers and delivery workers, may feel the impact of this rise more strongly. Businesses that depend on transport may also experience higher operating expenses.
Fuel prices are revised by oil marketing companies and can differ slightly from city to city because of state taxes and local charges.
In Delhi, petrol is now being sold at Rs 99.51 per litre after an increase of 87 paise. Diesel price in the capital has gone up to Rs 92.49 per litre after a rise of 91 paise.
In Mumbai, petrol now costs Rs 108.49 per litre while diesel has reached Rs 95.02 per litre. Kolkata and Chennai have also recorded increases in both petrol and diesel prices.
Many people are now worried that if global oil prices continue to rise, fuel costs may increase further in the coming weeks.
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Experts say one of the biggest reasons behind rising petrol and diesel prices is the ongoing tension in the Middle East, especially uncertainty around Iran and oil-producing regions.
The Middle East plays a very important role in the global oil market because many countries there produce large amounts of crude oil. If conflict increases or supply routes are affected, oil prices often rise quickly across the world.
Recently, crude oil prices moved sharply upward. Brent crude, one of the main global oil benchmarks, crossed more than 100 US dollars per barrel at one stage. US crude oil prices also remained high.
Even though prices saw some weekly ups and downs, market uncertainty continued because investors feared supply shortages and instability in the region.
India imports a large amount of crude oil from other countries. This means that international oil prices have a direct effect on domestic petrol and diesel prices. When crude oil becomes expensive globally, oil companies in India often face higher costs.
Government officials have earlier said that public sector oil companies were handling financial pressure for several months without increasing fuel prices. Reports suggested that oil companies were absorbing losses because global crude prices had gone up while domestic fuel rates remained unchanged.
However, with crude prices staying high and supply concerns continuing, oil companies have now started passing some of the extra burden to consumers through repeated fuel price increases.
Transport companies, airlines, businesses and industries are also closely monitoring fuel costs because higher energy prices increase expenses across different sectors.
Experts believe future fuel prices will depend mainly on international crude oil markets and geopolitical developments. If tensions in oil-producing regions continue or worsen, fuel prices could remain unstable.
However, if peace talks improve and crude oil supply becomes stable again, there may be some relief in prices.
Union Petroleum and Natural Gas Minister Hardeep Singh Puri recently said India has managed energy supply well despite global disruptions and rising crude prices. He stated that India ensured petrol, diesel and cooking gas remained available across the country without shortages during difficult global conditions.
Still, many consumers feel repeated fuel price increases are making daily expenses harder to manage. Rising fuel prices do not only affect vehicles but also influence transport charges, food prices and the cost of essential goods.
For ordinary families, even small increases in fuel rates matter because they slowly add pressure to monthly budgets. Many people are now keeping a close watch on global developments and hoping for stability in fuel prices in the coming weeks.
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