Fuel prices were raised by Rs 3 per litre on Friday, marking the first hike in more than four years, as state-run oil companies grapple with mounting losses triggered by soaring global crude prices amid the ongoing West Asia conflict.
The increase came 16 days after assembly elections concluded in Assam, Kerala, Tamil Nadu and West Bengal.
Fuel prices had remained unchanged through the polling period despite a sharp spike in international oil prices following the US-Israel attack on Iran on February 28 and Tehran’s retaliation, which effectively shut down the Strait of Hormuz, a key route through which nearly a fifth of the world’s oil and gas supplies transit.
In Delhi, petrol prices rose to Rs 97.77 per litre from Rs 94.77, while diesel increased to Rs 90.67 from Rs 89.67 per litre, according to industry sources.
In Mumbai, petrol now costs Rs 106.68 per litre and diesel Rs 93.14. Kolkata saw petrol prices climb to Rs 108.74 and diesel to Rs 95.13 per litre. In Chennai, petrol prices increased to Rs 103.67, while diesel rose to Rs 95.25 per litre.
Fuel rates vary across states depending on value-added tax structures.
This is the first revision since rates were cut by Rs 2 per litre each in March 2024 ahead of the Lok Sabha elections.
Before that, prices had remained frozen since April 2022, when fuel retailers suspended daily revisions after crude prices surged following Russia’s invasion of Ukraine.
Global crude oil prices, which were in the USD 70-72 per barrel range before the West Asia conflict, had surged past USD 120 per barrel at the peak of tensions. Prices have since eased slightly but continue to hover between USD 104 and USD 110 per barrel.
The sustained rise in crude prices sharply widened losses for fuel retailers. Industry sources said oil companies were losing Rs 14 per litre on petrol, Rs 42 per litre on diesel and Rs 674 per LPG cylinder before Friday’s hike.
Earlier this week, Oil Minister Hardeep Singh Puri said state-run retailers were losing nearly Rs 1,000 crore daily, adding that quarterly losses could wipe out the profits earned over an entire year.
He pegged cumulative losses at around Rs 1 lakh crore.
To soften the impact on consumers, the Centre had reduced excise duty on petrol and diesel by Rs 10 per litre each on March 27.
Private retailers, however, had already raised prices. Nayara Energy increased petrol prices by Rs 5 per litre and diesel by Rs 3 in March, while Shell raised petrol prices by Rs 7.41 and diesel 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.
Domestic LPG prices were also raised by Rs 60 per cylinder in March, though officials said rates remain below actual costs.
Industry sources described Friday’s hike as a calibrated move aimed at partially easing pressure on oil companies without causing a major inflationary shock.
However, economists warned that higher fuel prices would have a broader impact on inflation through increased transport, freight and logistics costs.
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, while wholesale price inflation touched a 42-month high of 8.3 per cent, driven largely by higher fuel and energy costs.
State-owned Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited had absorbed heavy losses after suspending daily price revisions in April 2022 to shield consumers from global crude volatility.
Prime Minister Narendra Modi recently urged citizens to cut fuel consumption and make greater use of public transport and work-from-home options to reduce India’s oil import burden and ease pressure on foreign exchange reserves.
(With inputs from PTI)
