India's Fuel Prices Rise Again Amid Iran Conflict and High Crude Oil Costs

State-run fuel retailers on Saturday raised petrol and diesel prices by less than Rs 1 per litre, dealers said, marking the third hike this month as the government seeks to offset losses stemming from elevated crude oil prices amid the Iran conflict, Reuters reported.

In New Delhi, petrol prices were increased by Rs 0.87 per litre to Rs 99.51, while diesel prices rose by Rs 0.91 to Rs 92.49 per litre, according to dealers.

Petrol and diesel prices were raised by around 90 paise per litre earlier this month, marking the second increase in fuel rates in less than a week amid rising global crude oil prices.

The second hike came days after fuel prices were increased by Rs 3 per litre as global crude prices surged due to the ongoing conflict in West Asia and supply concerns around the Strait of Hormuz.

Retail fuel prices had remained largely stable since April 2022, barring a one-time reduction of Rs 2 per litre in March 2024.

State-run oil marketing companies, Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, had halted daily fuel price revisions in 2022 to protect consumers from volatility in global crude markets following Russia’s invasion of Ukraine.

However, crude oil prices have climbed again amid the ongoing conflict in West Asia.

India’s crude basket, which averaged around $69 per barrel in February, has surged to nearly $113–114 per barrel in recent months.

India imports close to 90 per cent of its crude oil needs, making domestic fuel prices highly vulnerable to fluctuations in international energy markets.