State-run oil marketing companies on Monday raised petrol and diesel prices yet again amid firm global crude prices and persistent weakness in the rupee. The latest revision marks the fourth increase since May 15, with cumulative hikes in petrol and diesel prices now nearing ₹7.5 per litre.

The first round of increases saw both fuels becoming costlier by ₹3 per litre on May 15, followed by a series of smaller upward revisions on May 19, May 23 and now May 26.

In the national capital, petrol prices climbed by ₹2.61 per litre to breach the ₹100-mark at ₹102.12, while diesel prices rose by ₹2.71 to ₹95.20 per litre.

In Mumbai, petrol prices advanced to ₹111.21 per litre and diesel touched ₹97.83 per litre. Kolkata saw petrol rates rise to ₹113.51 per litre, while diesel prices edged closer to the three-digit mark at ₹99.82 per litre.

In Chennai, petrol prices increased to ₹107.77 per litre, while diesel was priced at ₹99.55 per litre after the latest revision.

Global benchmark Brent crude is currently hovering around $98.83 per barrel, down nearly 5% over the past week as markets turned optimistic about a possible U.S.-mediated ceasefire and peace agreement between Iran and the United States. The decline in oil prices comes as traders increasingly factor in the likelihood of a diplomatic breakthrough that could ensure the safe reopening of the strategically crucial Strait of Hormuz, easing concerns over potential disruptions to global energy supplies.

According to a recent report by Systematix, the recent fuel prices hikes offsets only 7-8% of cumulative under-recoveries from nearly three months of unchanged fuel prices, with total losses estimated at ₹1.7–1.8 lakh crore. It expects several more rounds of fuel price hikes to recover past losses, especially with crude oil prices likely to remain above $100 per barrel.

Another domestic brokerage Emkay Global believes the government may need to raise retail fuel prices to ease the burden on oil marketing companies (OMCs), which are currently facing significant under-recoveries. It estimates that if oil sustains above $100 per barrel over the next few quarters, total fuel price increases could reach ₹18-20 per litre over the next three to six months.