India raises diesel and petrol prices for third time in 8 days amid US-Iran tensions
India's oil marketing companies (IOC, BPCL, HPCL) raised petrol and diesel prices by ₹2.40 and ₹2.80 respectively on Friday, marking the third increase in 8 days. Brent staying above $102, the tense US-Iran ceasefire and the rupee weakening to 87.40 against the dollar have intensified cost pressure, with central bank policy meeting in June adding uncertainty.
India's three major oil marketing companies (Indian Oil Corp / IOC, Bharat Petroleum / BPCL and Hindustan Petroleum / HPCL) raised pump prices on Friday by an average of ₹2.40 (about 1.8%) on petrol and ₹2.80 (about 2.1%) on diesel. This is the third increase in the 8-day period since 15 May, with Delhi prices reaching ₹112.30 per litre on petrol and ₹99.80 on diesel. The cumulative rise totals 5.6%. Petroleum Ministry spokesperson Pankaj Jain said in a press briefing that 'we are reflecting the actual cost level imposed by global crude markets.'
Brent crude rose from $99.80 to $102.30 on Friday, while the Indian rupee weakened to 87.40 against the dollar (intraday low 87.52, a five-month low). Bloomberg Intelligence energy analyst Dhwani Mehta said 'This third hike in Indian markets reflects the Strait of Hormuz uncertainty affecting Gulf-sourced supply, which makes up 38% of India's crude imports. The average per-barrel cost has now risen from $78 to $89.' A senior IOC executive cited by Reuters said IOC has drawn 1.2 million tonnes from strategic reserves.
India's Finance Minister Nirmala Sitharaman said in a Monday Mumbai press briefing that 'a $14 billion supplementary subsidy package is being prepared to cushion the fuel-price impact on Indian households.' Investor surveys now place the probability of a 25-basis-point rate cut at the Reserve Bank of India (RBI)'s 11-13 June meeting at 64%, up from 41% previously. India's dependence on original Middle Eastern oil shipments makes regional stability critically important; the IMF updated its economic market analysis on Friday. This article is not investment advice; energy prices may remain volatile.
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