Petrol, Diesel Prices Hiked Again; OMC Stocks Jump As Crude Falls Below $100

Fuel prices were raised again on Monday, with petrol becoming costlier by ₹2.61 per litre and diesel by ₹2.71 per litre, marking the fourth increase in less than two weeks. The latest revision pushed cumulative fuel price hikes close to ₹7.5 per litre since retail price adjustments resumed earlier this month after a prolonged freeze.

The increase comes even as global crude oil prices declined sharply amid improving hopes of a US-Iran peace breakthrough, raising expectations of easing supply disruptions and lower pressure on energy markets.

Following the latest revision, petrol prices in Delhi rose to ₹102.12 per litre from ₹99.51, while diesel prices climbed to ₹95.20 from ₹92.49 per litre. The repeated increases are expected to further pressure household budgets and transportation costs as consumers continue to grapple with rising fuel expenses.

Retail fuel prices had remained largely unchanged for nearly four years before revisions resumed on May 15. Petrol and diesel prices were first increased by ₹3 per litre each, followed by a 90-paise increase on May 19. On May 23, petrol prices rose another 87 paise while diesel increased by 91 paise.

Crude Slips Below $100

Global crude prices declined sharply after signs of progress emerged in negotiations involving the US and Iran.

Brent crude futures dropped more than 5% to trade below the psychologically important $100-per-barrel level at around $98, while WTI crude slipped nearly 6% to around $91.30 per barrel.

The decline followed comments from US President Donald Trump, who said Washington and Iran had largely negotiated a memorandum of understanding on a peace agreement that could eventually reopen the Strait of Hormuz. Reports also indicated progress on broader principles for a potential agreement.

The Strait of Hormuz handles more than one-fifth of global oil and gas trade and remains one of the world's most critical energy transit routes. Any easing of tensions is generally viewed positively by energy markets.

OMC Stocks Rally

Shares of oil marketing companies rallied sharply during trade as investors welcomed easing crude prices and repeated fuel price revisions aimed at reducing financial pressure on state-run retailers.

Hindustan Petroleum Corporation (HPCL) emerged as the top gainer, rising 5.8% to ₹412.55. Shares of Bharat Petroleum Corporation (BPCL) gained 4.44% to ₹308.70, while Indian Oil Corporation (IOC) advanced 3.9% to ₹144.95.

The gains reflected expectations that lower crude prices, along with recent retail price increases, could help improve marketing margins for OMCs that had been under pressure from elevated global oil prices.

With Monday's rally, OMC shares turned positive for May and are on track to close in the green for the second consecutive month. However, despite the recent recovery, the stocks remain down 13%-20% so far in 2026.