Petrol Crosses ₹100 Again in Metros, More Hikes Likely

Petrol Crosses ₹100 Again in Major Indian Cities

Indian consumers are once again staring at triple-digit fuel prices. Petrol rates in several metro cities have moved above ₹100 per litre, reviving concerns over inflation and rising household expenses at a time when food and transport costs are already under pressure.

In parts of Maharashtra, Rajasthan, Madhya Pradesh and southern India, petrol prices have either crossed or come dangerously close to the ₹100 mark over the past few days. Diesel prices have also inched upward, adding to worries among transport operators and small businesses.

The latest rise comes after international crude oil prices surged sharply in global markets. Brent crude has climbed above the $90-per-barrel range amid escalating geopolitical tensions in West Asia and fears of supply disruptions from major oil-producing regions.

India imports more than 85% of its crude oil requirements. That dependence makes domestic fuel prices extremely vulnerable to global market swings.

Why Fuel Prices Are Rising Again

There is no single reason behind the latest spike. Multiple factors are colliding at the same time.

Global crude prices remain the biggest driver. Oil-producing nations under the OPEC+ alliance have continued production discipline to keep prices firm. At the same time, shipping disruptions in key trade routes have increased freight and insurance costs for oil cargoes heading to Asia.

The Indian rupee’s weakness against the US dollar has worsened the situation. Since crude oil is traded globally in dollars, a weaker rupee means India pays more for every barrel imported.

Retail fuel prices in India are revised by state-run oil marketing companies based on international crude prices, refinery margins, exchange rates and tax structures. While prices were frozen for long periods before major elections, oil companies are now gradually adjusting rates in response to rising costs.

An executive with a public sector oil marketing company said the pressure on fuel retailers has been building for weeks.

“If crude prices stay elevated for a sustained period, retail fuel prices may see further corrections. Oil companies cannot absorb heavy under-recoveries indefinitely,” the official said on condition of anonymity.

How Much Are Consumers Paying?

Petrol prices vary from state to state because of different VAT rates imposed by state governments.

In Mumbai, petrol prices are hovering above ₹104 per litre in several outlets. In Kolkata, rates remain lower than Mumbai but have steadily increased over recent weeks. Chennai and Bengaluru have also seen upward revisions.

Diesel, though still cheaper than petrol, has also become more expensive in many regions. Transport associations warn that freight charges may soon rise if diesel continues to climb.

For middle-class families already struggling with expensive vegetables, school fees and electricity bills, even a ₹2–₹3 rise in fuel prices has a ripple effect.

Ride-hailing drivers, delivery workers and small traders are among the worst affected.

“I spend nearly ₹500 more every week compared to two months ago,” said Subhasis Dey, an app-based cab driver in Kolkata. “Passengers complain about fares, but we are also suffering.”

What It Means for West Bengal and Haldia

The issue carries particular relevance for West Bengal because the state is home to the strategically important Haldia petrochemical and refinery belt.

The refinery ecosystem around Haldia plays a crucial role in eastern India’s fuel supply chain. Any sustained rise in crude import costs eventually impacts refining margins, transportation expenses and downstream distribution.

Economists say higher fuel prices could also push up logistics costs for goods moving through Haldia Port and eastern freight corridors.

Small industries dependent on transportation — including fisheries, agriculture supply chains and local manufacturing — may face additional financial pressure.

Bus operators in several Bengal districts have already hinted at seeking fare revisions if diesel prices continue rising.

Could Prices Rise Further?

Analysts believe the immediate outlook remains uncertain.

If crude oil stays near current levels or rises further, Indian fuel retailers may have little choice but to continue increasing pump prices.

According to energy market analysts, three developments will determine what happens next:

• OPEC+ production decisions

• Geopolitical tensions in West Asia

• The rupee-dollar exchange rate

“There is definitely upside risk in fuel prices,” said energy economist Arvind Menon. “India managed some relief earlier because crude prices had softened temporarily. But global supply concerns are back, and that changes the equation.”

There is also concern that higher fuel prices could feed broader inflation across the economy. Transport costs affect nearly every product sold in the market — from vegetables and milk to cement and consumer goods.

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

Will the Government Cut Fuel Taxes?

Whenever petrol prices rise sharply, attention quickly turns to taxes.

Both the Centre and states earn significant revenue from excise duty and VAT on petrol and diesel. Economists say taxes account for a large portion of the retail price consumers pay.

The Union government had cut excise duties earlier during previous price spikes, but officials have so far shown little indication of another major reduction.

Several state governments are also reluctant to reduce VAT because fuel taxes are an important revenue source.

Political parties, however, have started attacking each other over the issue.

Opposition leaders accused governments of burdening ordinary citizens while international oil companies post profits. The ruling side argued that global factors are beyond India’s direct control and highlighted earlier tax reductions.

Public Anger Building on Social Media

Fuel prices have again become a major talking point online.

Hashtags related to petrol prices began trending on social media platforms after several cities crossed the ₹100 mark. Users posted photos of fuel station displays and compared current prices with rates from previous years.

Memes, criticism and political commentary flooded X, Facebook and Instagram throughout the day.

Consumer groups are also demanding better transparency in fuel pricing mechanisms.

What Happens Next

For now, consumers may need to prepare for continued volatility.

Much depends on international crude markets over the next few weeks. Any escalation in geopolitical tensions or further supply cuts could trigger another round of increases.

At the same time, a stronger rupee or government intervention through tax reductions could provide temporary relief.

Until then, rising fuel prices are likely to remain one of the biggest economic concerns for ordinary Indians — especially for families already navigating a difficult cost-of-living environment.