Petrol, diesel prices hiked for 4th time this month:Costlier by ₹2.61, ₹2.71 per litre; Petrol crosses ₹100/litre mark in Delhi

Oil companies have once again increased petrol and diesel prices, marking the fourth fuel price hike this month. Petrol prices have gone up by ₹2.61 per litre, while diesel has become costlier by ₹2.71 per litre. After the latest revision, petrol in Delhi is now priced at ₹102.12 per litre, while diesel costs ₹95.20 per litre. Fuel prices raised 4 times this month Fuel prices have seen repeated increases in May: May 23: Petrol up by 87 paise, diesel by 91 paise May 19: Petrol and diesel up by 90 paise each May 15: Prices increased by ₹3 per litre Latest hike: Petrol up by ₹2.61, diesel by ₹2.71 per litre Impact on common people The increase in fuel prices is expected to affect several sectors and may lead to a rise in daily expenses. Transport and goods prices likely to rise Truck and tempo operators may increase freight charges, making vegetables, fruits and ration items transported from other states more expensive. Farming costs may increase Farmers are likely to face higher expenses for running tractors and pumping sets, which could eventually increase the prices of grains and other agricultural products. Public transport may become costlier Bus fares, auto-rickshaw charges and school transport fees may also increase due to rising diesel prices. Why have fuel prices increased? According to oil companies, the main reason behind the latest hike is the sharp rise in international crude oil prices. Before the Iran-US conflict, crude oil prices were around $70 per barrel. They have now crossed $100 per barrel, putting pressure on oil marketing companies. Officials said state-owned companies were facing heavy losses due to rising import costs. How fuel prices are decided in India Fuel prices in India are revised daily under the Dynamic Pricing System. The final retail price includes several components: Crude oil cost: India imports nearly 90% of its crude oil from abroad. Refining charges: Crude oil is processed into petrol and diesel at refineries. Central excise duty: The Centre imposes excise duty and road cess. Dealer commission: Petrol pump dealers receive a fixed commission. State VAT: State governments levy VAT, which varies across states. This is why petrol and diesel prices differ from city to city. Prices were stable since March 2024 Fuel prices had remained unchanged since March 2024 after the government reduced rates by ₹2 per litre ahead of the Lok Sabha elections. Although fuel prices are technically revised every day based on global crude oil averages, rates were kept stable for months due to political sensitivity. Oil companies facing heavy losses According to the petroleum ministry, companies such as Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum were losing nearly ₹30,000 crore every month because of high crude oil prices. Govt had earlier reduced excise duty To keep fuel prices under control, the Centre had earlier reduced special excise duty on petrol and diesel by ₹10 per litre each. Following the cut: Excise duty on petrol came down from ₹21.90 to ₹11.90 per litre Excise duty on diesel was reduced from ₹17.80 to ₹7.80 per litre PM Modi calls for careful use of fuel Prime Minister Narendra Modi recently appealed to citizens to use petrol, diesel and cooking gas carefully in view of the geopolitical tensions in West Asia.