India's state-run fuel retailers increased petrol and diesel prices by about 90 paise per liter (less than €0.01 or $0.01) on Tuesday, marking the second hike in less than a week. The move comes amid global oil shock from the US-Israel conflict with Iran.

In New Delhi, petrol prices stood at Rs 98.64 (€0.88, $1.03) per liter while diesel rose to Rs 91.58 per liter, according to Press Trust of India. Fuel prices vary across cities due to state-level taxes, transportation costs, and dealer commissions.

Global crude prices rose nearly 8% last week as tensions between the US and Iran continue. On May 15, Indian retailers had hiked petrol and diesel by Rs 3 per liter for the first time in four years. Gas prices have also been raised twice over the past week, sparking concerns among public transport operators.

The hikes come after India completed its Assembly Elections, extending the ruling Bharatiya Janata Party's influence. The opposition accused the government of delaying fuel hikes to gain voter favor. Experts had warned that more hikes were in store as last week's increase covered only a fifth of the desired adjustment.

Sujata Sharma, Joint Secretary in the Ministry of Petroleum, stated that the May 15 hike cut losses by a fourth, but oil companies still incur about Rs 750 crore (€66.85 million) daily loss. Economists and the central bank had warned that hikes were inevitable with no end to the Middle East conflict in sight.

Source: www.dw.com