Source The Hindu
NEW DELHI — In a major development that is bound to impact household budgets and trigger political sparring, state-run Oil Marketing Companies (OMCs) on Friday announced a uniform price hike of ₹3 per litre for both petrol and diesel across the country. CNG prices have also been increased by ₹2 per kg.
This marks the first significant fuel price revision in nearly four years, as domestic oil companies capitulate to mounting under-recoveries and a sharp 50% surge in global crude oil benchmarks, heavily exacerbated by the escalating conflict in West Asia.
The New Metro Rates
Following the Friday morning revision, retail fuel prices across major Indian metros have scaled new heights:
Metro City New Petrol Price (per litre) Change New Diesel Price (per litre) Change
Delhi ₹97.77 +₹3.00 ₹90.67 +₹3.00
Mumbai ₹106.68 +₹3.14 ₹93.14 +₹3.11
Kolkata ₹108.74 +₹3.29 ₹95.13 +₹3.11
Chennai ₹103.67 +₹2.83 ₹95.25 +₹2.86
“A Very Small Rise” Amid Global Pressures: IOCL
Defending the decision, the Indian Oil Corporation Limited (IOCL) stated that the price correction is minimal compared to the actual burden felt by suppliers. Speaking to reporters, Arvind Kumar, Director (Refineries) at IOCL, emphasized that international crude prices have skyrocketed, with India’s import basket jumping from around $69 per barrel to over $113 per barrel since the outbreak of the Gulf crisis.
“It’s a very small rise, and you know a lot of pressure is there. But I can tell you that Indian Oil’s Group companies and our 10 refineries are working round-the-clock at more than 100% capacity so that there will be no crisis or dry-out at any of our retail outlets,” Kumar said.
He further urged citizens to cooperate in these critical times, suggesting a shift toward public transport to reduce India’s massive oil import dependency. Highlighting sustainable alternatives, IOCL also announced the deployment of green hydrogen-powered, zero-emission shuttle buses for the Delhi Metro Rail Corporation (DMRC) in the Central Vista region.
Market analysts echoed that while the ₹3 hike offers breathing room, it represents barely a tenth of what OMCs actually need to fully offset accumulated losses.
Opposition Slams Centre, Questions Election Timing
The sudden price hike has immediately united opposition parties in condemning the central government. Senior leaders accused the ruling dispensation of withholding price increases until recent assembly elections concluded.
Taking to X (formerly Twitter), Trinamool Congress (TMC) Parliamentary Leader in Rajya Sabha, Derek O’Brien, lambasted the government:
“First they loot your vote, then they kick you where it hurts. Pathetically predictable. Diesel and petrol prices hiked.” He also questioned whether state governments would now be forced to absorb the pressure by reducing local VAT.
Senior Congress leader Jairam Ramesh warned that the fuel hike would act as a catalyst for severe inflation, adding a cascading strain on freight, logistics, and essential goods. “This will hurt India’s economic growth prospects at a highly delicate time,” Ramesh stated.
Meanwhile, CPI(M) leader Hannan Mollah took a swipe at the government’s long-standing slogans, asking, “Is this the Modi government’s ‘Achhe Din’? People did not expect the promised ‘Achhe Din’ to manifest as steep price hikes.”
Economic Spillover Looming Large
Economists warn that the true impact of this hike will reverberate far beyond the fuel pumps. Because a massive portion of India’s daily essentials—including vegetables, fruits, and dairy products—relies heavily on diesel-powered road transport networks, kitchen budgets are expected to tighten over the next few weeks. The hike is also anticipated to squeeze margins for e-commerce and delivery platforms, potentially translating to higher delivery charges for retail consumers.
