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Petrol and Diesel Prices Increased Again in India From May 19

Petrol and diesel prices across India have increased again from May 19, with fuel rates rising by an average of 90 paise per litre. This comes just days after oil companies raised petrol and diesel prices by ₹3 per litre on May 15, making it the second fuel price hike within five days.

The latest increase in fuel prices is expected to impact transportation costs, farming expenses, and prices of daily essentials across the country.

Petrol and Diesel Prices Rise Again in India

Oil marketing companies revised petrol and diesel prices upward on Tuesday morning amid rising international crude oil prices. The increase follows growing pressure on state-run oil companies due to higher global crude rates linked to tensions in West Asia.

According to reports, crude oil prices have surged from nearly $70 per barrel before the US-Iran conflict to more than $100 per barrel now.

Higher Fuel Prices May Increase Cost of Living

Transport and Freight Charges May Rise

The increase in diesel prices is likely to raise truck and tempo transportation charges. This could make vegetables, fruits, grocery items, and ration products transported from other states more expensive.

Farming Costs Likely to Increase

Farmers may have to spend more on tractors, irrigation pumps, and diesel-operated farming equipment. This may eventually increase food grain prices in the market.

Bus and Auto Fares May Become Costlier

Public transport services, including buses, auto-rickshaws, and school buses, may also revise fares due to rising fuel expenses.

Why Petrol and Diesel Prices Increased

The major reason behind the fuel price hike is the sharp rise in international crude oil prices. The ongoing geopolitical tension in West Asia has disrupted the global oil market and increased pressure on importing countries like India.

India imports nearly 90 percent of its crude oil requirements from foreign markets. As crude prices rise globally, oil companies face higher import and refining costs.

How Petrol and Diesel Prices Are Calculated in India

Crude Oil Base Price

The international crude oil price forms the base cost of petrol and diesel sold in India.

Refining and Processing Charges

Crude oil is refined into petrol and diesel at domestic refineries. Refining costs and company margins are added during processing.

Central Government Excise Duty

The central government imposes excise duty and road cess on fuel products across the country.

Dealer Commission

Petrol pump dealers receive a fixed commission from oil companies for fuel sales.

State Government VAT

Different state governments impose varying VAT rates on fuel, which is why petrol and diesel prices differ across cities like Delhi, Mumbai, Kolkata, and Chennai.

Fuel Prices Had Remained Stable Since 2024

Petrol and diesel prices had remained mostly unchanged since March 2024. Before the Lok Sabha elections, the government had reduced fuel prices by ₹2 per litre to provide relief to consumers.

Despite India’s daily fuel price revision system, prices remained stable for a long period due to political and economic considerations.

Oil Companies Facing Heavy Losses

State-owned companies such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum are reportedly facing heavy losses due to rising crude oil prices.

Officials stated that these companies were losing nearly ₹30,000 crore every month on petrol, diesel, and LPG sales.

PM Modi Urges Citizens to Reduce Fuel Consumption

Prime Minister Narendra Modi recently appealed to citizens to use petrol, diesel, and gas carefully amid the geopolitical crisis in West Asia.

Speaking at an event in Telangana, the Prime Minister said reducing fuel consumption would help save foreign exchange and reduce the economic impact of global conflicts.

Conclusion

The latest petrol and diesel price hike is likely to have a direct impact on household budgets, transportation costs, and inflation. If international crude oil prices continue to remain high, consumers may face further fuel price increases in the coming weeks.