Petrol and diesel prices rise across Hyderabad, major cities
Fuel prices differ across states because of varying taxes
Hyderabad — Commuters waking up on Friday felt the pinch at the pump as petrol and diesel prices climbed for the first time in over four years. The hike — implemented nationwide, including in Hyderabad and other metros — comes amid mounting losses among fuel retailers squeezed by a surge in global crude prices tied to the West Asia conflict.
In New Delhi, petrol rose to Rs 97.77 a litre from Rs 94.77, while diesel went up to Rs 90.67 from Rs 87.67, industry sources said. Hyderabad motorists now face petrol at Rs 110.89 and diesel at Rs 98.96 per litre. Prices differ across states because of varying value-added taxes, but the direction is the same: a steady upward nudge that many households will feel in daily budgets.
This increase follows a long period of stability at the pumps. For more than four years, fuel rates had been unchanged at the retail level — a calm that masked growing stress on downstream sellers. Private retailers have been carrying losses as crude rallied on international markets; the recent adjustment is partly an acknowledgement of those pressures. It also marks a political inflection: the move comes 16 days after Assembly elections in Assam, Kerala, Tamil Nadu and West Bengal concluded, suggesting the timing was influenced by electoral sensitivities. While fuel pricing is officially deregulated, governments often factor in politics when changes are made.
Globally, energy markets surged after the US-Israel strikes on Iran in late February and Iran’s subsequent retaliatory measures that effectively choked the Strait of Hormuz, a crucial artery that carries Brent crude leapt past USD 120 a barrel at the peak of the crisis — well above the USD 70–72 range before hostilities ramped up — pushing input costs for petrol and diesel higher and exposing retailers to widening losses.
Domestic fuel companies had already absorbed some of that pain. In March, Nayara Energy, the country’s largest private fuel retailer, preemptively raised petrol by Rs 5 per litre and diesel by Rs 3. Shell followed with larger increases: from April 1 it raised petrol by Rs 7.41 and diesel by Rs 25 per litre in several cities. In Bengaluru, for instance, Shell lists petrol at Rs 119.85 and diesel at Rs 123.52 per litre — figures that underscore the patchwork of prices across brands and locations.
For ordinary consumers, the immediate impact is tangible. Rising petrol and diesel add to commuting costs, push up transportation and logistics charges, and filter through to prices of goods and services. Small businesses, cab drivers and delivery workers — already coping with tight margins — will feel the squeeze quickly. Higher fuel costs also nudge inflation upward, affecting families trying to stretch stagnant incomes.
The petrol-diesel hike is not the only energy-related price shock this year. Liquefied petroleum gas (LPG) cylinders for cooking had already been repriced in March, when urban consumers saw hikes of around Rs 60 per cylinder in Hyderabad and other metros. For many households, these compounded increases in energy bills reduce discretionary spending and amplify budgetary stress.
Industry observers point out two simultaneous dynamics shaping the market. First, international volatility — driven by geopolitical tensions that can disrupt supply routes — translates into sharp swings in crude prices. Second, domestic pricing and taxation frameworks create differential impacts across cities and regions. State-level taxes and retailer pricing choices mean some consumers pay significantly more than others for the same fuel.
Economists say some pass-through of higher global prices was inevitable. “When crude spikes sharply, retailers’ margins erode fast; unless the state absorbs costs through subsidies — which is expensive — pump prices must rise to avoid systemic losses,” one analyst said. He added that the timing of adjustments can be political, particularly near elections, but that sustained high crude would force more frequent price revisions.
Political leaders faced a tricky conversation: explain the need for price adjustments without alienating voters already wary of inflation. For now, the government appears to have delayed changes through the polling period, leaving the correction to happen once elections concluded. That calculus risks public frustration, but also reflects how sensitive energy costs are in electoral politics.
Looking ahead, markets will watch developments in the Strait of Hormuz, diplomatic efforts to reduce tensions, and OPEC+ production decisions. Any movement that eases supply fears could soften crude prices and relieve pressure at the pumps. Conversely, renewed flare-ups would likely mean further price volatility.
For commuters in Hyderabad and beyond, today’s hike is an immediate reality. Filling a tank now costs noticeably more; for many households the small daily choices — fewer trips, carpooling, or shifting to public transport — will be the first response. Policymakers and industry will be watching too, balancing the financial health of retailers, inflationary pressures, and the political fallout from a decision that reaches into every household’s monthly bill.
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