- By Priyanka Koul
- Mon, 25 May 2026 09:41 PM (IST)
- Source:JND
Petrol prices were raised by Rs 2.61 per litre and diesel by Rs 2.71 on Monday, marking the fourth hike in less than two weeks and extending the delayed pass-through of soaring global crude oil prices triggered by the Iran conflict.
Meanwhile, global crude oil prices on Monday slipped below the 100-dollar-per-barrel mark. However, in the domestic market, petrol prices were increased by Rs 2.61 per litre, while diesel prices saw a hike of Rs 2.71 per litre. With the latest revision, cumulative fuel price hikes since May 15 have reached nearly Rs 7.5 per litre.
In Delhi, petrol prices rose from Rs 99.51 to Rs 102.12 per litre, while diesel prices climbed from Rs 92.49 to Rs 95.20 per litre, according to industry sources.
Over the past 10 days, petrol prices have increased by Rs 7.50 per litre. Economic experts believe the rise in petrol and diesel prices so far could push retail inflation up by more than 0.25 per cent.
Will Petrol And Diesel Prices Rise Again?
According to jagran.com citing sources have warned that further increases in retail prices of petrol and diesel cannot be ruled out. The continued weakening of the rupee against the US dollar, coupled with elevated international crude oil prices, is adding financial pressure on domestic oil marketing companies.
Most major countries across the world have already increased retail prices of petrol and diesel by more than 10 per cent over the last two months. Amid hopes of a possible agreement between the United States and Iran, crude oil prices on Monday slipped to around 98 dollars per barrel.
However, experts say that even this level remains significantly high for the Indian market. Before the war between the United States and Iran began on February 28, crude oil prices were trading between 70 and 80 dollars per barrel. Compared to those levels, current crude prices are still substantially higher.
Rupee Continues To Weaken Against Dollar
India imports nearly 85 per cent of its crude oil requirements. With the rupee continuing to weaken against the dollar, the country’s import bill has increased further. Global crude oil prices had already started rising after February 28, while retail prices of petrol and diesel in India were revised on May 15 after a gap of four years.
The government has no direct control over petrol and diesel prices, as rates are determined by oil companies. The Centre’s role is limited to increasing or reducing excise duty on fuel.
Experts believe state governments can still provide relief to consumers by cutting Value Added Tax (VAT) on petrol and diesel. In several states, VAT on fuel exceeds 30 per cent, leaving room for possible reductions. However, excise duty and VAT on petrol and diesel continue to remain major sources of revenue for both the Centre and state governments.