Petrol, Diesel Prices Raised Again; 4th Hike in 10 Days

Petrol, diesel prices rise sharply again across India

Fuel prices rose once again across India on Monday, with petrol and diesel becoming costlier by more than ₹2.5 per litre in several cities. The latest revision marks the fourth increase in just 10 days, intensifying pressure on household budgets already strained by inflation.

In Kolkata, petrol prices crossed the ₹111-per-litre mark in many outlets, while diesel moved closer to ₹98. Similar increases were recorded in Delhi, Mumbai, Chennai, and other metropolitan cities as state-run oil marketing companies revised retail rates early in the morning.

The back-to-back hikes have triggered concern among transport operators, traders, and daily commuters, particularly in industrial regions such as Haldia, where fuel consumption is closely tied to port operations, trucking, and manufacturing activity.

Industry analysts say the surge is linked to rising global crude oil prices and the weakening rupee, both of which have increased the cost burden on Indian oil companies.

Why fuel prices are rising

International crude prices have remained volatile over the past few weeks amid supply concerns in West Asia and production cuts by major oil-producing countries. Brent crude futures climbed above $92 per barrel recently, putting pressure on fuel-importing nations like India.

India imports nearly 85 per cent of its crude oil requirements. Any sustained rise in global prices directly impacts domestic fuel rates unless the Centre or state governments cut taxes.

Officials from public sector oil firms indicated that under-recoveries had widened significantly in recent weeks.

“Global crude prices have increased sharply and the rupee has also weakened against the US dollar. Retail price adjustments became unavoidable,” a senior executive at a state-run oil company said on condition of anonymity.

The latest hike comes after oil companies held retail prices relatively steady for several months despite fluctuations in international markets.

Impact on West Bengal and Haldia

The increase is expected to have a noticeable impact across West Bengal, especially in transport-heavy districts and industrial belts.

Haldia, one of eastern India’s major petrochemical and port hubs, relies heavily on diesel-powered transportation for cargo movement, fishing operations, and industrial logistics. Truck owners and transport associations in the region warned that freight rates could rise within days if fuel prices continue climbing.

“Every ₹1 increase in diesel affects our operating cost significantly,” said Subhas Mondal, a transporter operating between Haldia and Kolkata. “Small fleet owners are already struggling with toll charges and maintenance expenses.”

Auto-rickshaw drivers and private bus operators also expressed concern over shrinking margins.

In Kolkata and surrounding districts, app-based cab fares are expected to increase as operators pass on the additional fuel burden to passengers.

Retail vegetable sellers and fish traders fear transportation costs will soon reflect in market prices. Bengal’s fish supply chain, particularly in coastal areas, is highly dependent on diesel-run boats and refrigerated transport.

Inflation worries return

Economists warn that repeated fuel price hikes can trigger broader inflationary pressure across sectors.

Diesel is widely used in goods transportation, agriculture, and industrial machinery. When diesel becomes expensive, the cost of moving goods rises, eventually pushing up prices of food items and essential commodities.

“Fuel inflation has a cascading effect,” said economist Arindam Bhattacharya. “Transport costs rise first, then wholesale prices, and finally retail consumers feel the pressure.”

The Reserve Bank of India has repeatedly flagged crude oil volatility as a major risk to inflation management.

Several market experts believe inflationary pressure could complicate future interest rate decisions if fuel prices remain elevated for an extended period.

Political reactions intensify

Opposition parties criticised the Centre over the repeated hikes, accusing the government of failing to shield consumers from international oil shocks.

Leaders from the Congress and Trinamool Congress demanded tax reductions on petroleum products. Several political figures argued that excise duties and VAT continue to keep retail prices high despite periodic relief measures announced earlier.

The BJP defended the pricing mechanism, stating that global market conditions were responsible for the increase.

A BJP spokesperson said India was still managing fuel prices better than several other large economies facing energy inflation.

Meanwhile, social media platforms saw a surge in posts criticising rising living costs. Hashtags related to petrol and diesel prices trended through the day as users shared updated fuel rates from different cities.

Consumers feel the pressure

For middle-class families, the repeated hikes have become a direct monthly burden.

Office-goers using personal vehicles said fuel expenses had risen sharply within weeks. Delivery workers and gig-economy drivers, many of whom rely on two-wheelers, said their daily earnings were being squeezed.

“I spend nearly ₹250 more every week now,” said Souvik Das, a food delivery rider in Kolkata. “But customer demand has not increased, and incentives are lower.”

Small businesses dependent on transportation also fear reduced profits ahead of the festive season.

In semi-urban and rural Bengal, diesel-powered irrigation pumps could become costlier to operate, affecting agricultural input expenses during the current farming cycle.

Will prices rise further?

Energy analysts say future fuel revisions will depend largely on international crude trends and government intervention.

If crude prices remain elevated and the rupee weakens further, additional hikes cannot be ruled out. However, pressure may mount on the Centre and state governments to provide tax relief if inflation accelerates sharply.

Some analysts believe oil marketing companies may slow further increases if political backlash intensifies.

For now, consumers across India are bracing for higher transportation costs and another round of inflation-linked price increases in everyday goods.

The coming weeks will be crucial as markets watch both global oil movements and possible policy responses from New Delhi.