Petrol and diesel prices in India have increased once again, with fuel retailers raising rates by around 90 paise per litre on Tuesday. The revision comes just three days after the previous hike of ₹3 per litre on May 15, making it the second increase within a week. After remaining largely unchanged for nearly four years, fuel prices are now gradually being adjusted as global crude oil costs continue to rise.
The latest revision has pushed petrol prices in the national capital to ₹98.64 per litre, up from ₹97.77 earlier. Diesel prices in Delhi have also climbed to ₹91.58 per litre from ₹90.67. Similar increases have been reported in several other major cities across the country, though the final price varies depending on local taxes imposed by individual states.
In Mumbai, petrol now costs ₹107.59 per litre while diesel is priced at ₹94.08. Kolkata residents are paying ₹109.70 per litre for petrol and ₹96.07 for diesel. In Chennai, petrol has reached ₹104.49 per litre and diesel ₹96.11 per litre. With these adjustments, fuel prices have reached their highest level since May 2022.
The recent price increases come against the backdrop of rising global crude oil prices. International markets have seen a sharp surge in oil rates in recent months, largely triggered by geopolitical tensions and disruptions in global supply routes. One of the major reasons cited by analysts is the conflict involving Iran, which has affected oil shipments through the Strait of Hormuz, a crucial passage for global oil trade.
Indian oil marketing companies had been selling petrol and diesel at older rates for months despite rising crude prices. According to officials in the Ministry of Petroleum and Natural Gas, companies were suffering heavy financial losses due to this gap. Government sources indicated that even after the earlier hike in mid-May, fuel retailers were still losing around ₹750 crore per day.
Petrol and diesel prices had remained mostly frozen since April 2022, with only a small reduction of ₹2 per litre announced in March 2024 ahead of the general elections. The government had earlier argued that keeping prices stable was necessary to protect consumers from the impact of volatile global energy markets. However, opposition parties often questioned the timing of these decisions, claiming that political considerations influenced the pricing policy during election periods.
Industry experts say the latest increase appears carefully calculated. The rise of around 90 paise per litre is relatively modest compared to the steep jump in global crude oil prices. Analysts believe the move is intended to ease the financial burden on oil companies without causing a sudden spike in inflation or public backlash.
Despite the recent adjustments, estimates suggest that fuel retailers are still facing losses. Market assessments indicate that oil companies continue to lose around ₹10 per litre on petrol and roughly ₹13 per litre on diesel, even after the price revisions earlier this month.
The pressure on fuel prices is not limited to petrol and diesel alone. Compressed Natural Gas (CNG) prices have also seen increases recently. On May 15, CNG rates were raised by ₹2 per kilogram in several cities including Delhi and Mumbai. Just two days later, another increase of ₹1 per kilogram was announced.
Similarly, domestic LPG cylinder prices were raised by ₹60 earlier this year. Even with that hike, oil companies are reportedly losing about ₹674 on every 14.2-kilogram LPG cylinder sold, according to industry estimates.
With energy prices rising globally, the government has also begun encouraging fuel conservation. Prime Minister Narendra Modi recently urged citizens and institutions to reduce unnecessary fuel consumption. Suggestions included adopting work-from-home practices where possible, limiting travel, and promoting more efficient energy use. Some state governments have already instructed departments to cut down on official travel and rely more on virtual meetings.
Economists believe the fuel price adjustments could have a modest impact on inflation in the coming months. Higher fuel costs often increase transportation and logistics expenses, which can eventually push up the prices of goods and services.
Recent economic data already reflects rising cost pressures. India’s retail inflation, measured by the Consumer Price Index, increased to 3.48 percent in April 2026 from 3.40 percent in March. Wholesale price inflation has risen even more sharply, touching 8.3 percent — the highest level recorded in more than three years, largely driven by rising fuel and energy costs.
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