Written by: Badr Ahmed

India’s state-run fuel companies have raised petrol and diesel prices again, for the second time in a week, in a move that reflects the growing pressure New Delhi is facing as a result of rising global oil prices amid tensions and the ongoing war with Iran.

According to local distributors, fuel prices have increased by about 0.9 rupees per liter, with consumers in the capital, New Delhi, paying about 98.64 rupees per liter for gasoline and 91.58 rupees for diesel, with prices varying between states due to local taxes imposed on fuel.

Global oil prices push India to another fuel price hike

This increase comes just days after prices were raised by 3 rupees per liter, in the first official adjustment to fuel prices in four years, indicating a gradual move by the government and distribution companies to offset losses caused by the rising cost of crude oil imports.

India is the world's third-largest importer and consumer of oil, making it highly vulnerable to geopolitical fluctuations and global energy prices. With crude prices rising due to tensions in the Middle East, state-owned refining and distribution companies are facing increasing financial pressure.

The joint secretary at the Indian Ministry of Petroleum said that state-owned fuel companies are losing about 7.5 billion rupees a day as a result of the gap between domestic selling prices and global costs, while confirming that the government does not plan to provide direct financial support to these companies.

Indian Petroleum Corporation, Hindustan Petroleum, and Bharat Petroleum control more than 90% of the country’s fuel station network, which includes more than 103,000 stations, giving the government broad influence over pricing policy despite the official liberalization of fuel prices.

Analysts and distributors expect gradual price increases to continue in the coming period, similar to what happened in 2022 during the repercussions of the Corona pandemic, especially with the continued pressure on global energy markets.

In contrast, opposition parties criticized the Prime Minister’s government, accusing it of postponing price increases during the recent regional elections to avoid public anger, before implementing successive increases after the elections concluded.

Modi had recently called on citizens to reduce travel and conserve fuel, amid concerns about continued high energy prices and their impact on the local economy and inflation rates.