The Indian government increased petrol and diesel prices by more than Rs 2 per litre on Monday, May 25, 2024 [1, 2, 3].
This price surge reflects the volatility of global energy markets. As a major importer of crude oil, India is highly susceptible to price shocks caused by geopolitical instability in oil-producing regions.
According to reports, petrol prices rose by Rs 2.61 per litre [1], while diesel prices increased by Rs 2.71 per litre [1]. In Delhi, the new price for petrol reached Rs 102.12 per litre [1], officially pushing the cost past the Rs 100 mark. Diesel in the capital was priced at Rs 95.20 per litre [1].
Other reports indicate a different rate for petrol in Delhi, listing it at Rs 97.77 per litre [4]. However, multiple sources said that petrol has crossed the Rs 100 threshold in the city [2, 3].
This latest adjustment is part of a rapid trend of increasing costs. There have been four price hikes in the last 10 days [1]. The Ministry of Petroleum & Natural Gas has overseen these changes as the country grapples with the economic fallout of international conflict [4].
The price increases are linked to higher global crude prices driven by ongoing tensions between the U.S. and Iran [2, 4]. Specifically, instability surrounding the Strait of Hormuz — a critical chokepoint for global oil shipments — has contributed to the rising cost of fuel [2].
Consumers in Delhi and other major cities are facing these cumulative increases as the government adjusts domestic rates to match the rising cost of imports.
“Petrol prices in Delhi surpassed Rs 100 per litre”
The frequent adjustments to fuel prices in India highlight the fragility of the national economy against geopolitical shocks. By passing the cost of expensive crude oil directly to consumers, the government avoids absorbing the losses but risks fueling domestic inflation, as transportation and logistics costs typically rise alongside diesel prices.
