On 15 May, India increased petrol and diesel prices by Rs 3 per litre across the country. This marks the first major revision in nearly four years, ending a prolonged freeze on fuel price adjustments.
The hike follows rising global crude oil prices and supply disruptions linked to the ongoing West Asia conflict. New rates vary by city due to local taxes, with petrol in Delhi now at Rs 97.77 per litre and in Kolkata at Rs 108.74 per litre.
According to Hindustan Times, the revised prices for petrol in Delhi are now at Rs 97.77 per litre and Rs 108.74 per litre in Kolkata. State-owned oil marketing companies stated that they had absorbed increased input costs for several weeks before passing on part of the burden to consumers.
As reported by Financial Express, the price increase has brought Hindustan Petroleum Corporation, Bharat Petroleum Corporation, and Indian Oil Corporation into focus.
The government estimated that these companies were incurring losses of around ₹20 per litre on petrol and nearly ₹100 per litre on diesel due to unchanged retail prices amid rising global crude oil costs.
The revision is expected to impact not only the energy sector but also transport and logistics industries.
As highlighted by The News Minute, the hike was triggered by the ongoing West Asia conflict, which has caused global crude oil prices to surge.
India’s crude basket, which averaged around USD 69 per barrel before the conflict, has since climbed to over USD 113 per barrel. Officials indicated that the current increase reflects only a fraction of the actual rise needed to offset global energy costs.
“The three oil companies are currently losing nearly ₹1,000 crore every day because of the widening gap between international crude prices and domestic retail rates,” Petroleum Minister Hardeep Singh Puri stated earlier this week.
Industry sources confirmed that the price hike in Delhi raised diesel to Rs 90.67 per litre. In Mumbai, petrol now costs Rs 106.68 per litre and diesel Rs 93.14 per litre. Chennai’s rates are Rs 103.67 for petrol and Rs 95.25 for diesel. The increase is approximately one-tenth of the hike required to fully account for the surge in global energy rates since the start of the West Asia conflict.
Prime Minister Narendra Modi recently urged citizens to reduce fuel consumption, use public transport, and adopt work-from-home practices following his address on rising energy concerns. The government has also encouraged postponing non-essential foreign travel and gold purchases to conserve foreign exchange reserves.
Oil companies had maintained stable retail prices for 11 weeks despite a sharp rise in input costs, but were eventually compelled to pass on part of the burden once operations became financially unsustainable as coverage revealed. The last major price revision before this was a reduction of Rs 2 per litre in March 2024, ahead of the Lok Sabha elections.
Fuel prices in India differ from state to state due to variations in local taxes, VAT rates, and transportation charges as analysis showed. The recent hike is expected to increase transportation costs and may contribute to inflationary pressures in the coming months.
Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.