Small fuel hike, big impact: What it means for your wallet

Petrol and diesel prices in India were increased by Rs 3.08 per litre on Friday, pushing petrol rates in Delhi close to the Rs 98 mark and diesel above Rs 90.

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The revision, which came into effect immediately, ends weeks of uncertainty over whether rising global crude oil costs would be passed on to consumers. With the latest hike, petrol in the national capital now costs around Rs 97.77 per litre, while diesel has risen to about rs 90.67 per litre, according to industry sources. While the increase has sparked concern among consumers, economists and industry experts say the revision is still significantly lower than earlier fears of a sharper adjustment amid global oil market volatility.

Disruptions linked to tensions around the Strait of Hormuz and fluctuating Brent crude prices had triggered speculation that fuel rates in India could see a much steeper upward revision. Instead, oil marketing companies appear to have opted for a calibrated hike to avoid an immediate inflationary shock.