New Delhi, May 19: Fuel prices were revised upward again across major Indian cities on Tuesday, marking the second hike within a week amid continued volatility in global crude oil markets triggered by the ongoing West Asia conflict.

In New Delhi, petrol prices increased by 87 paise to Rs 98.64 per litre from Rs 97.77, while diesel prices rose by 91 paise to Rs 91.58 per litre from Rs 90.67.

The latest revision comes just days after oil marketing companies had announced a Rs 3-per-litre hike in petrol and diesel prices nationwide, adding further pressure on consumers already grappling with rising transport and household expenses.

Kolkata Registers Sharpest Increase
Among the four metro cities, Kolkata recorded the steepest jump in petrol prices.

Petrol prices in Kolkata rose by 96 paise to Rs 109.70 per litre, while diesel prices increased by 94 paise to Rs 96.07 per litre.

In Chennai, petrol became costlier by 82 paise and now costs Rs 104.49 per litre. Diesel prices in the city were increased by 86 paise to Rs 96.11 per litre.

The latest revision reflects continued upward pressure on retail fuel prices across the country, with all metro cities witnessing noticeable increases in both petrol and diesel rates.

Global Crude Prices Driving Domestic Hike
The repeated increase in fuel prices signals mounting pressure on fuel retailers as global crude oil markets remain volatile due to escalating tensions in West Asia.

Brent Crude was trading above USD 111 per barrel on Monday, while WTI crude crossed USD 107 per barrel.

India imports nearly 85 per cent of its crude oil requirement, making domestic fuel prices highly sensitive to fluctuations in international oil markets.

Concerns over possible disruption in the Strait of Hormuz, one of the world’s most critical oil shipping routes, have further intensified fears of global supply constraints.

Rs 3 Hike Announced Last Friday
The latest increase follows the nationwide Rs 3 per litre hike announced on Friday.

Following that revision, petrol prices in Delhi had increased from Rs 94.77 to Rs 97.77 per litre, while diesel rose from Rs 87.67 to Rs 90.67 per litre.

Other metro cities had also witnessed steep increases:

Kolkata: Petrol Rs 108.74, Diesel Rs 95.13
Mumbai: Petrol Rs 106.68, Diesel Rs 93.14
Chennai: Petrol Rs 103.67, Diesel Rs 95.25

At the same time, CNG prices in Delhi were increased by Rs 2 per kg, taking the retail rate from Rs 85 to Rs 87.

Russian Oil Cushion Weakening
Another major factor contributing to the fuel price hike is the end of a US sanctions waiver that had allowed continued trade in Russian seaborne oil.

The waiver reportedly expired on Saturday following a temporary extension under the administration of Donald Trump.

India had relied significantly on discounted Russian crude oil over the last two years to manage import costs and shield consumers from sharp retail price hikes.

However, with discounted Russian crude supplies now under pressure and crude prices nearing USD 111 per barrel, oil companies have started adjusting domestic retail prices after months of maintaining relative stability.

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Inflation Concerns Loom Large
Analysts warn that if Indian refiners reduce imports of discounted Russian crude due to sanctions-related concerns, they may be forced to source oil from alternative suppliers at significantly higher prices.

Such a move could increase India’s import bill, weaken the rupee and intensify inflationary pressure across sectors.

The impact is expected to extend beyond fuel prices, potentially affecting:

Public transport fares
Airline ticket prices
Food and vegetable transportation costs
Logistics and supply chain expenses
Overall household expenditure

The future trajectory of domestic fuel prices will largely depend on whether crude oil prices remain above USD 111 per barrel and how quickly geopolitical tensions in West Asia ease.