The hike comes 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 rise in international oil prices triggered by the ongoing West Asia conflict.
In Delhi, petrol price increased from Rs 94.77 to Rs 97.77 per litre, while diesel rose from Rs 89.67 to Rs 90.67 per litre, according to industry sources.
Fuel prices had largely remained frozen since April 2022, except for a one-time cut of Rs 2 per litre on both petrol and diesel in March 2024 ahead of the Lok Sabha elections. The last major hike was implemented in April 2022.
Following Friday’s revision, petrol in Mumbai now costs Rs 106.68 per litre and diesel Rs 93.14. In Kolkata, petrol is priced at Rs 108.74 and diesel at Rs 95.13, while in Chennai, petrol now costs Rs 103.67 and diesel Rs 95.25 per litre.
Fuel prices vary across states because of differences in VAT rates. Although petrol and diesel prices are officially deregulated, revisions are often influenced by political and economic considerations.
Global energy prices surged after the US-Israel attack on Iran on February 28 and Tehran’s retaliation, which effectively disrupted movement through the Strait of Hormuz — a key route for nearly one-fifth of global oil and gas supplies.
Crude oil prices climbed above USD 120 per barrel during the peak of the conflict, compared to the USD 70-72 range before tensions escalated. Though prices have eased slightly in recent weeks, they continue to remain elevated between USD 104 and 110 per barrel.
The sustained rise in crude prices has resulted in heavy losses for state-owned fuel retailers. Before Friday’s increase, oil companies were reportedly losing Rs 14 per litre on petrol, Rs 42 on diesel and Rs 674 per LPG cylinder.
Earlier this week, Oil Minister Hardeep Singh Puri said state-run retailers were collectively losing around Rs 1,000 crore daily, with quarterly losses estimated at nearly Rs 1 lakh crore.
To shield consumers from the global price surge, the Centre had reduced excise duty on petrol and diesel by Rs 10 per litre each on March 27.
Private fuel retailers had already increased prices earlier. Nayara Energy raised petrol prices by Rs 5 per litre and diesel by Rs 3 in March, while Shell increased 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 and diesel at Rs 123.52 per litre.
Domestic LPG cylinder prices were also raised by Rs 60 in March, though officials say prices still remain below actual market cost. Industry sources described Friday’s fuel hike as a calibrated move aimed at reducing pressure on oil companies without triggering a major inflation shock.
The increase is, however, expected to have some impact on inflation. 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 an over three-year high of 8.3 per cent, driven largely by higher fuel and energy costs.
Economists note that while petrol and diesel carry limited direct weight in the CPI basket, higher fuel prices indirectly impact transportation, logistics and overall input costs across sectors.
State-run oil firms — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum — had suspended daily fuel price revisions in April 2022 to protect consumers after crude prices surged following Russia’s invasion of Ukraine.
After recovering losses during periods of lower crude prices, the companies are once again facing pressure due to the fresh spike in global oil rates linked to the West Asia conflict.
The crude oil basket imported by India averaged around USD 69 per barrel in February before the conflict intensified, but rose to nearly USD 113-114 per barrel in the following months.
Prime Minister Narendra Modi recently urged citizens to reduce fuel consumption, use public transport more frequently and opt for work-from-home arrangements wherever possible to help cut India’s oil import bill.
