Hyderabad: Hyderabad has emerged as the most expensive major city in India for petrol, with prices hitting Rs 112.81 per litre on Saturday, May 23, after state-owned oil marketing companies raised fuel rates for the third time in under 10 days, pushing the cumulative hike to nearly Rs 5 per litre since May 15.
Diesel in Hyderabad stood at Rs 100.94 per litre, also among the highest in the country, underlining the mounting cost burden on the city’s consumers and transport sector.
Saturday’s revision raised petrol prices by 87 paise per litre and diesel by up to 91 paise across the country. Compressed natural gas (CNG) prices were also raised by Re 1 per kg, marking the third increase in recent days and taking the cumulative CNG hike to Rs 4 per kg.
How other metros compare
Among other major cities, Kolkata saw petrol rise 94 paise to Rs 110.64 per litre and diesel climb 95 paise to Rs 97.02. Jaipur recorded petrol at Rs 108.91 per litre after a 94-paise hike, with diesel at Rs 94.15. Mumbai‘s petrol rose 90 paise to Rs 108.49, with diesel at Rs 95.02.
Bengaluru petrol stood at Rs 108.05 per litre after a 93-paise hike, while diesel rose 95 paise to Rs 95.99. Chennai recorded petrol at Rs 105.31, up 82 paise, and diesel at Rs 96.98, up 87 paise. In Lucknow, petrol climbed to Rs 99.28, approaching the Rs 100 mark, while diesel was priced at Rs 92.64.
Delhi, which has the benefit of lower state taxes, saw the smallest increase. Petrol rose 87 paise to Rs 99.51 per litre and diesel was up 91 paise to Rs 92.49. Prices vary across states due to local levies and taxes.
A freeze, then a flood of hikes
The back-to-back increases follow a prolonged freeze in retail fuel prices that stretched for over three years. Rates had remained static since April 2022, barring a Rs 2-per-litre cut in March 2024 ahead of national elections. The dam broke on May 15, when state-owned oil companies raised petrol and diesel by Rs 3 per litre each, followed by a 90-paise hike on May 19, and Saturday’s revision.
The trigger: global crude oil prices have surged more than 50 per cent since late February, following US-Israeli strikes on Iran and disruptions to shipments through the Strait of Hormuz, a critical global oil transit route. A weaker rupee and tightening refining margins have compounded the pressure on import costs.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), which together control 90 per cent of India’s fuel market, had kept pump prices artificially low despite mounting losses – a move the government said was aimed at shielding consumers from inflation.
Petroleum Ministry’s Joint Secretary Sujata Sharma said earlier this week that the May 15 increase reduced losses by only about a fourth. State-run oil firms were still losing around Rs 750 crore per day.
According to Crisil, oil marketing companies were losing approximately Rs 10 per litre on petrol and Rs 13 per litre on diesel even after the earlier hike. Petrol and diesel are now at their highest levels since May 2022.
Watch out for inflation
The successive revisions have stoked concern about broader price pressures. India’s retail inflation accelerated to 3.48 per cent in April from 3.40 per cent in March, while wholesale inflation climbed to a 42-month high of 8.3 per cent, driven largely by higher fuel and energy costs.
Industry officials said the latest revisions appeared calibrated to partially ease pressure on oil companies without triggering a sharp inflation shock, though they acknowledged the increases would add to price pressures across the supply chain.
Prime Minister Narendra Modi last week urged citizens and government departments to conserve fuel, encourage remote working and reduce non-essential travel as elevated energy prices pressure foreign exchange reserves and threaten to widen the current account deficit. Several state governments have since directed departments to curb travel and reduce office attendance.
Opposition parties have accused the government of deliberately delaying price revisions until after key state elections. The May 15 increase came after the ruling Bharatiya Janata Party (BJP) expanded its electoral footprint by winning three of the five state and Union Territory elections held recently, including West Bengal.
(With inputs from PTI)
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