Petrol and diesel prices were increased by 90 paise per litre on Tuesday amid a sharp rise in global crude oil prices, marking the second fuel price hike in the past week. Last Friday, fuel rates were raised by ₹3 per litre.

According to industry sources, the latest revision pushed the price of petrol in New Delhi to ₹98.64 per litre from ₹97.77, while diesel prices rose to ₹91.58 per litre from ₹90.67.

The increase follows a sharp escalation in international crude oil prices after Iran reportedly closed the strategically important Strait of Hormuz in response to attacks by the United States and Israel earlier this year. Global crude prices have surged by more than 50 per cent since late February, significantly increasing the burden on domestic oil marketing companies.

Sujata Sharma, joint secretary in the Petroleum Ministry, said the May 15 fuel price hike helped recover only about one-fourth of the losses being incurred by state-owned oil firms. She added that public sector oil companies continue to suffer daily losses of nearly ₹750 crore.

According to ratings agency Crisil, even after the latest increases, oil marketing companies are still losing around ₹10 per litre on petrol and ₹13 per litre on diesel.

Fuel prices are now at their highest level since May 2022. Prices had largely remained unchanged since April 2022, while a ₹2-per-litre cut was announced in March 2024 ahead of the general elections.

Meanwhile, compressed natural gas (CNG) prices have also risen twice within a week. CNG prices were increased by ₹2 per kilogram on May 15, followed by another ₹1-per-kilogram hike on May 17.