NEW DELHI, May 25 — Public sector oil marketing companies executed another steep upward revision for auto fuels on Monday, driving petrol prices above the ₹100-per-litre threshold in Delhi for the first time since May 2022. Retail petrol in the capital climbed to ₹102.12 per litre following a ₹2.61 increase, while diesel expanded to ₹95.20 per litre after a ₹2.71 hike.
The latest adjustment represents the fourth upward shift in the last 10 days, accumulating a fortnightly surge of ₹7.35 for petrol and ₹7.53 for diesel. Sector analysts declared that the current pattern closely mimics the daily incremental steps observed in April 2022 following the invasion of Ukraine, though the current under-recovery gap is larger.
“The incremental hike cycle is unlikely to end soon,” a sector analyst observed, pointing out that the underlying trajectory of daily losses across the three state firms dropped from ₹1,000 crore on May 15 to below ₹500 crore after Monday’s revision. “A fifth hike is expected unless Brent stabilises below $100 a barrel,” the analyst added.
Geopolitical friction in West Asia initially drove Brent crude from $72.87 in late February to nearly $120 a barrel on March 9. State-run companies held retail prices static during the early weeks of the conflict due to regional assembly elections, causing substantial revenue deficits. Although Brent dipped to $99.36 early Monday on hopes of eased shipping conditions through the Strait of Hormuz, the state firms continue to experience fuel under-recoveries.
Varying local levies and state taxes created diverse pricing across Indian metros on Monday:
- In Mumbai, petrol reached ₹111.21 per litre and diesel hit ₹97.83 per litre.
- Kolkata pumps priced petrol at ₹113.51 per litre and diesel at ₹99.82 per litre.
- Chennai operations recorded petrol at ₹107.77 per litre and diesel at ₹99.55 per litre.
The ongoing domestic price hikes are rolling out against a backdrop of historic corporate earnings. The three state-run marketing giants reported a joint net profit of ₹77,280.65 crore for the full 2025–26 fiscal year, climbing from ₹33,601.57 crore in the prior fiscal period. This full-year performance was supported by strong refining margins and stable global markets before the late-winter supply disruptions began.
Market experts stated that while Brent closed down from its mid-month peak, making the consecutive retail hikes politically complex to defend, the marketing companies are also factoring in compounding losses from liquefied petroleum gas alongside auto fuels to stabilize their balance sheets.
