•Public sector oil companies raised petrol and diesel prices by nearly 90 paise per litre on June 4, the third hike since May 15.
•Despite the increase, oil firms still face under-recoveries of ₹13 per litre on petrol and ₹38 per litre on diesel due to high global crude prices.
•CNG prices in Delhi-NCR increased by ₹1 per kg to ₹81.09 per kg, with similar hikes in neighboring cities.
•Petrol prices in Delhi now stand at ₹99.51 per litre, while diesel is priced at ₹92.49 per litre.
•The cumulative price hike since mid-May is under ₹5 per litre, much lower than global increases.
•The government initially absorbed losses by freezing prices for 75 days, leading to a 25% reduction in cumulative under-recovery from ₹1,000 crore to ₹750 crore.
•Petrol prices in major developed economies now exceed ₹150 per litre, with several countries seeing prices above ₹180 per litre.
Public sector oil marketing companies on Saturday increased the retail prices of petrol and diesel by nearly 90 paise per litre, marking the third price revision since May 15. The move comes as these companies attempt to partially recover mounting losses incurred from selling auto fuels below market rates despite a sharp surge in global crude oil prices driven by supply concerns. However, even after this increase, oil companies continue to face an under-recovery of ₹13 per litre on petrol and ₹38 per litre on diesel (both figures are pre-tax), as international crude prices remain above $100 per barrel.
In Delhi, the new price of petrol is now ₹99.51 per litre, while diesel is priced at ₹92.49 per litre. Across other major cities, petrol is retailing at ₹108.49 in Mumbai, ₹105.31 in Chennai, and ₹110.64 in Kolkata. Diesel prices stand at ₹95.02 in Mumbai, ₹96.98 in Chennai, and ₹97.02 in Kolkata. The variation in prices across states is primarily due to differences in state-level Value Added Tax (VAT) structures.
The cumulative increase in petrol and diesel prices since May 15 totals just under ₹5 per litre, which is significantly lower than the hikes implemented in many other parts of the world following the escalation of the West Asia conflict and the resulting spike in oil prices.
In a related move, Indraprastha Gas Limited (IGL), which supplies compressed natural gas (CNG) in Delhi and the National Capital Region (NCR), announced a fresh price hike of ₹1 per kg, bringing the cost of CNG to ₹81.09 per kg in the capital. This is the second increase in CNG prices this week, and similar hikes have been observed in neighboring cities such as Noida, Ghaziabad, and Gurgaon. Despite the rise in global gas prices, the prices of domestic LPG cylinders and piped cooking gas have remained unchanged.
According to government officials, the initial decision to freeze petrol and diesel prices for 75 days—despite rising crude costs—resulted in significant revenue losses for the central government as it sought to shield consumers. Officials noted that petrol prices in most major developed economies now exceed ₹150 per litre, with several countries retailing it at over ₹180 per litre. A government spokesperson stated that most major oil-importing economies have passed on the burden of high crude prices to consumers, with pump prices in several countries having doubled over the past 48 months.
The first price hike on May 15 was approximately ₹3 per litre, followed by another increase of about 90 paise on May 19. After the first hike, the government reported that the cumulative under-recovery on petrol, diesel, and LPG had decreased by 25%, from ₹1,000 crore to ₹750 crore. This reduction reflects the partial adjustment in retail prices, though significant under-recoveries persist due to the sustained high levels of global crude prices.
