Petrol, diesel prices raised by Rs 3 per litre

Petrol and diesel prices were increased by Rs 3 per litre each on Friday, marking the first hike in fuel rates in more than four years, as rising global crude oil prices pushed state-run fuel retailers into heavy losses.

The increase came 16 days after assembly elections concluded in Assam, Kerala, Tamil Nadu and West Bengal. Fuel prices had remained unchanged during the polling period despite a sharp jump in international crude oil prices following the West Asia conflict.

In Delhi, petrol prices rose to Rs 97.77 per litre from Rs 94.77, while diesel prices increased to Rs 90.67 per litre from Rs 89.67, industry sources said.

This is the first increase in fuel prices since April 2022. Rates had largely remained frozen since then, except for a one-time reduction of Rs 2 per litre on both petrol and diesel in March 2024 ahead of the Lok Sabha elections.

In Mumbai, petrol now costs Rs 106.68 per litre and diesel Rs 93.14. In Kolkata, petrol prices increased to Rs 108.74 per litre and diesel to Rs 95.13. In Chennai, petrol now costs Rs 103.67 per litre and diesel Rs 95.25 per litre.

Fuel prices differ across states because of variations in value-added tax (VAT).

Although petrol and diesel prices are officially deregulated, revisions have often been influenced by political considerations.

Global energy prices surged after the US-Israel attack on Iran on February 28 and Tehran’s retaliation disrupted movement through the Strait of Hormuz, a critical shipping route through which nearly one-fifth of the world’s oil and gas supplies pass.

Crude oil prices, which were in the USD 70-72 per barrel range before the conflict, climbed above USD 120 per barrel during the peak of tensions in West Asia. Prices have since eased but remained elevated at around USD 104-110 per barrel.

The rise in crude prices led to heavy losses for fuel retailers, even as pump prices remained unchanged during the election period.

Before Friday’s increase, oil marketing companies were reportedly losing Rs 14 per litre on petrol, Rs 42 per litre on diesel and Rs 674 per cylinder on LPG cooking gas.

Earlier this week, Oil Minister Hardeep Singh Puri said the three state-run fuel retailers were losing around Rs 1,000 crore every day. He said cumulative quarterly losses were enough to wipe out the profits earned in an entire year and estimated the total losses at around Rs 1 lakh crore.

To reduce the impact of rising global oil prices on consumers, the government had on March 27 cut excise duty on petrol and diesel by Rs 10 per litre each.

Private fuel retailers had already raised prices earlier this year. Nayara Energy increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre in March. Shell raised petrol prices by Rs 7.41 per litre and diesel prices by Rs 25 per litre from April 1. In Bengaluru, Shell currently sells petrol at Rs 119.85 per litre and diesel at Rs 123.52 per litre.

Domestic LPG cooking gas prices were also raised by Rs 60 per cylinder in March, although prices remain below actual market costs.

Industry sources said Friday’s fuel price increase appeared calibrated to partly reduce pressure on oil companies without causing a major inflation shock.

However, the increase is expected to add to inflationary pressure.

India’s retail inflation, measured by the Consumer Price Index (CPI), rose to 3.48 per cent in April 2026 from 3.40 per cent in March. Wholesale price inflation (WPI) climbed to 8.3 per cent, the highest level in 42 months, driven largely by higher fuel and energy prices linked to elevated global crude oil rates.

Petrol and diesel do not have separate categories in the CPI basket but are included under transport and communication, as well as fuel and power. Economists say fuel price increases have a wider impact because they raise freight, logistics and input costs across sectors.

State-run fuel retailers — Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd — had suspended daily fuel price revisions in April 2022 to shield consumers from the impact of global oil prices following Russia’s invasion of Ukraine.

The companies suffered major losses during the first half of the 2022-23 financial year before recovering as global oil prices softened later.

But the conflict in West Asia has again pushed international crude prices sharply higher.

The crude oil basket imported by India averaged around USD 69 per barrel in February before the conflict in West Asia. In the months after the conflict began, it averaged around USD 113-114 per barrel.

Prime Minister Narendra Modi recently urged citizens to reduce fuel consumption and use public transport and work-from-home options more frequently to help reduce foreign exchange outflows caused by oil imports.