Summary of this article
Petrol and diesel prices increased by Rs 3 per litre
Hike follows global crude surge and OMC losses pressure
CNG price in Delhi rises to around Rs 79 per kg
Petrol and diesel prices were hiked by Rs 3 per litre each on Friday, marking the first revision since April 2022 after a prolonged freeze, aimed at insulating consumers from volatile global crude movements.
The hike came around two weeks after assembly elections in Assam, Kerala, Tamil Nadu and West Bengal, during which retail rates remained unchanged despite a sharp rise in international oil prices linked to the West Asia conflict.
Prior to this hike, fuel prices had seen only a one-time reduction of Rs 2 per litre each in March 2024 ahead of Lok Sabha elections, while daily revision was suspended in April 2022 by state-run oil marketing companies (OMCs) such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL), to manage extreme volatility in crude markets.
City-Wise Retail Prices
In Delhi, petrol now costs Rs 97.77 per litre compared with Rs 94.77 earlier, while diesel is priced at Rs 90.67 per litre against Rs 89.67. In Mumbai, petrol stands at Rs 106.68 per litre, and diesel at Rs 93.14 per litre. In Kolkata, petrol is priced at Rs 108.74 per litre and diesel at Rs 95.13 per litre, while in Chennai, petrol is priced at Rs 103.67 per litre and diesel at Rs 95.25 per litre.
Price variation across states continues due to differences in value-added tax (VAT) and local levies, which lead to different final pump prices even for the same fuel.
Global Crude And West Asia Impact
Crude oil prices jumped sharply in response to the West Asia tensions, with the benchmark price briefly moving above USD 120 per barrel, before easing to the USD 104-110 level. This is up from the pre-conflict price of USD 70-72 per barrel, highlighting the rapid increase in global energy prices within a short timeframe.
In February, the average price of India's crude basket was around USD 69 per barrel, and surged to approximately USD 113-114 per barrel in the subsequent months, causing a burden on the refineries and, consequently, leading to rising prices of retail fuels.
Oil Company Losses And Policy
State-run OMCs, such as IOC, BPCL and HPCL, faced significant under-recoveries as retail prices remained unchanged despite higher crude costs, with estimated losses of Rs 14 per litre on petrol and Rs 42 per litre on diesel, along with a wide gap in liquefied petroleum gas (LPG) pricing. Oil minister Hardeep Singh Puri said to PTI that daily losses for these companies were around Rs 1,000 crore, with quarterly losses close to Rs 1 lakh crore, reflecting sustained strain on marketing margins.
To ease the blow on consumers, the government had slashed excise duty on petrol and diesel by Rs 10 per litre each in March 2024, though private companies like Nayara Energy and Shell have already hiked pump prices because of their high procurement cost.
Inflation And Economic Impact
Although fuel is not an explicit part of the Consumer Price Index (CPI), it contributes to the inflationary pressures primarily via transport and logistics. Their effect cascades to larger groups of items, including transport, fuels and power, which affect the cost of households and businesses indirectly.
CPI inflation stood at 3.48 per cent in April 2026 compared to 3.40 per cent in March, while the Wholesale Price Index (WPI) climbed up to 8.3 per cent, its highest level in 42 months, with energy costs being the key factor behind this trend.
FAQs
Why Fuel Prices Have Increased In India?
Fuel prices rose due to higher global crude oil prices after West Asia tensions, which pushed crude above USD 100 per barrel and increased input costs for OMCs.How Much Have Petrol And Diesel Prices Increased?
Petrol and diesel prices have increased by Rs 3 per litre each across cities, including Delhi where petrol is Rs 97.77 per litre and diesel is Rs 90.67 per litre.What Is The New CNG Price In Delhi?
CNG in Delhi is around Rs 75-78 per kg, depending on IGL revisions and distribution cycles.Which Companies Are Affected By Rising Crude Oil Prices?
IOC, BPCL, HPCL, along with private retailers like Nayara Energy and Shell.
