Why are Petrol and Diesel prices rising so fast, Will Fuel Prices Rise Further?

New Delhi: Petrol and diesel prices were increased once again on Saturday, marking the third revision in fuel rates this month as global crude oil prices continue to fluctuate amid geopolitical tensions in the Middle East. Oil marketing companies raised petrol prices by 87 paise per litre and diesel prices by 91 paise per litre, adding further pressure on household budgets and transportation costs.

The latest hike follows another increase earlier this week when fuel prices were raised by nearly 90 paise per litre. Before that, the Centre had announced a sharp increase of almost Rs 3 per litre on May 16, ending a long period during which domestic fuel rates had largely remained stable despite rising international crude prices.

Revised Fuel Rates in Metro Cities

Following the latest revision, petrol prices in Delhi climbed to Rs 99.51 per litre, while diesel reached Rs 92.49 per litre. In Mumbai, petrol is now priced at Rs 108.49 per litre and diesel at Rs 95.02 per litre.

Kolkata recorded petrol prices at Rs 110.64 per litre and diesel at Rs 97.02 per litre, making it one of the costliest metro cities for fuel. In Chennai, petrol prices rose to Rs 105.31 per litre while diesel touched Rs 96.98 per litre.

Global Crude Prices Driving Increase

The recent hikes come amid continuing uncertainty in global oil markets due to tensions involving Iran and concerns over international crude supply. Brent crude futures crossed USD 104 per barrel on Friday, while US West Texas Intermediate crude traded near USD 97 per barrel.

Industry experts said rising geopolitical risks and supply concerns have forced oil companies to pass on part of the burden to consumers after reportedly absorbing significant losses for several months.

Government Defends Fuel Policy

Union Petroleum and Natural Gas Minister Hardeep Singh Puri recently stated that India managed to maintain stable fuel supplies and avoid shortages despite global disruptions and sharp fluctuations in crude oil prices.

Addressing the CII Annual Business Summit 2026, the minister said strong policy coordination and effective supply management helped India handle global energy shocks while ensuring uninterrupted availability of petrol, diesel and LPG across the country.