Petrol and Diesel Rates Remain At Higher Levels In Many Indian Cities On May 27

Prices of petrol and diesel remained high in many Indian cities on Tuesday, May 27, in view of yet another fuel rate hike made this week by state-owned oil marketing firms.

The latest rate hike was the fourth such fuel rate hike since May 15, reflecting volatility in global crude oil rates amid growing uncertainties about energy supplies from the affected regions in West Asia.

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Petrol rates remained above ₹100 per liter in many metro cities like Delhi, Mumbai, Bangalore, and Hyderabad, while diesel rates also stayed high in many parts of the country.

Brent crude oil prices remained around multi-month highs due to risks to global energy supplies.International financial institutions including Goldman Sachs and JP Morgan have recently highlighted continued volatility in crude prices due to geopolitical uncertainties.

Latest Petrol And Diesel Prices On May 27

Fuel prices vary across states because of differences in value-added tax (VAT), transportation costs and dealer commissions. Hyderabad continued to remain among the costliest metro cities for both petrol and diesel.

Rising Fuel Costs Add To Inflation Concerns

Higher fuel prices are expected to increase transportation and logistics costs across sectors, adding pressure on household expenses and supply chains.

According to comments made to LiveMint by Madhavi Arora, Lead Economist at Emkay Global Financial Services, rising fuel prices may increase freight and distribution costs across industries. Madan Sabnavis, Chief Economist at Bank of Baroda, also noted to the publication that higher diesel prices generally have a wider impact on inflation due to diesel’s role in transportation and agriculture activities.

The impact is likely to be significant for logistics companies, trucking operators and app-based delivery services where fuel expenses form a large share of operating costs.

Meanwhile, according to a report by The Times of India, fuel stations in Nagpur witnessed increased demand after the latest revisions. The report stated that petrol sales rose 16% while diesel sales increased 19% compared with normal levels.

Petrol and diesel prices in India are revised daily by Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation based on international crude oil prices and foreign exchange movements.