Petrol, diesel prices hiked by Rs 3 per litre across India

NEW DELHI, May 15: Petrol and diesel prices were increased by Rs 3 per litre each on Friday, marking the first hike in more than four years, as state-owned oil marketing companies faced mounting losses amid a sharp rise in global crude oil prices.

The revision comes 16 days after assembly elections concluded in Assam, Kerala, Tamil Nadu and West Bengal, during which fuel prices had remained unchanged despite volatility in international oil markets triggered by geopolitical tensions in West Asia.

In the national capital, petrol now costs Rs 97.77 per litre, up from Rs 94.77, while diesel has risen to Rs 90.67 per litre from Rs 89.67, according to industry sources. In Mumbai, petrol is priced at Rs 106.68 and diesel at Rs 93.14 per litre. In Kolkata, rates stand at Rs 108.74 for petrol and Rs 95.13 for diesel, while Chennai sees petrol at Rs 103.67 and diesel at Rs 95.25 per litre.

Fuel prices had largely remained frozen since April 2022, except for a one-time reduction of Rs 2 per litre in March 2024 ahead of the Lok Sabha elections. The last upward revision was also in April 2022.

The latest hike follows sustained pressure on state-run retailers—Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited—which were reportedly incurring losses of Rs 14 per litre on petrol, Rs 42 per litre on diesel, and Rs 674 per cylinder of LPG before the revision.

Oil Minister Hardeep Singh Puri recently stated that public sector fuel retailers were losing around Rs 1,000 crore per day, with quarterly losses large enough to offset annual profits, estimated at nearly Rs 1 lakh crore.

Industry sources said global crude oil prices surged after heightened tensions in West Asia, briefly crossing USD 120 per barrel before stabilising in the USD 104–110 range. India’s crude import basket, which averaged around USD 69 per barrel in February, rose sharply to over USD 110 per barrel in subsequent months.

Although fuel prices are officially deregulated, revisions have often been influenced by political and economic considerations, especially during election periods when price stability is prioritised.

To ease consumer burden amid rising global prices, the government had earlier cut excise duty on petrol and diesel by Rs 10 per litre each on March 27. However, private retailers had already raised pump prices, with companies like Nayara Energy and Shell increasing rates significantly in recent months.

Economists warned that the latest increase could add inflationary pressure, as fuel costs feed into transportation, logistics and production expenses. Retail inflation rose to 3.48 per cent in April 2026, while wholesale inflation surged to an over three-year high of 8.3 per cent, driven largely by energy costs.

Petrol and diesel are not directly listed in the Consumer Price Index basket but influence broader categories such as transport and fuel and power, making their impact widespread across sectors.

Prime Minister Narendra Modi has recently urged citizens to reduce fuel consumption and adopt public transport and work-from-home practices to help curb import bills and ease pressure on foreign exchange reserves. (Agencies)