Overview
- State-run oil marketing companies increased petrol by Rs 2.61 and diesel by Rs 2.71 on Monday, taking Delhi petrol to Rs 102.12 and marking the fourth revision since May 15.
- The four increases since May 15 add up to roughly Rs 7.5 per litre in cumulative hikes after a multi-year freeze on daily price revisions.
- Officials and company executives blame higher global crude, shipping bottlenecks around the Strait of Hormuz and a weaker rupee for sharply higher import costs that forced the pass-through.
- Credit agencies and energy officials say OMCs still face large under-recoveries of about Rs 700–1,000 crore per day, a shortfall that industry sources warn is unsustainable without more price rises or fiscal measures.
- Opposition leaders have accused the government of delaying increases until after elections, consumers and transport operators warn of higher inflation and logistics costs, and analysts say the shock could speed calls for energy diversification and state-level tax relief.