- Fuel prices increase after four years due to global crude oil costs.
- Petrol and diesel rise by ₹3 per litre, CNG by ₹2/kg.
- OMCs absorb losses as geopolitical tensions elevate oil prices significantly.
Fuel Price Hike: After nearly four years of largely stable retail fuel prices, motorists across India woke up to a sharp increase in petrol, diesel and CNG rates on Friday, as oil marketing companies (OMCs) moved to counter mounting losses triggered by soaring global crude oil prices.
The latest revision, which came into effect immediately, has pushed up fuel prices across major cities and added fresh pressure on household budgets already grappling with rising inflation.
Petrol and Diesel Become Costlier
State-run oil retailers increased petrol and diesel prices by Rs 3 per litre each, marking the first major retail fuel price hike in more than four years.
In Delhi, petrol prices rose to Rs 97.77 per litre from Rs 94.77 earlier, while diesel prices climbed to Rs 90.67 per litre.
The increase follows months of pressure on public sector fuel retailers, which had continued selling fuel at older rates despite a sharp rise in crude oil prices globally.
CNG Prices Also Revised Upwards
Alongside petrol and diesel, compressed natural gas (CNG) prices were also increased amid rising energy costs.
Effective Friday, CNG prices have been raised by Rs 2 per kilogram, taking the new retail price in Delhi to Rs 79.09 per kilogram.
The revision reflects broader stress across the energy supply chain as oil and gas prices remain elevated due to the ongoing West Asia conflict.
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Why Fuel Prices Are Rising
The latest hike comes against the backdrop of heightened geopolitical tensions in West Asia, which have disrupted global energy supply chains and pushed crude oil prices sharply higher.
Crude oil, which was trading in the $70-72 per barrel range before the conflict, surged above $120 per barrel during the peak of tensions linked to the US-Iran conflict and disruptions around the Strait of Hormuz.
Although prices have eased slightly in recent weeks, Brent crude continues to remain elevated around the $104-110 per barrel range.
Industry analysts say this has severely impacted India’s oil marketing companies, which have been absorbing higher import costs without fully passing them on to consumers.
OMC Losses Mount
According to Sujata Sharma, Joint Secretary in the Union Petroleum Ministry, the combined under-recovery on petrol, diesel and LPG has reached nearly Rs 30,000 crore every month.
“Our OMCs are buying crude oil at higher rates but are not selling at corresponding rates to protect our consumers. This impacts their finances,” Sharma said.
She added that the Centre had already reduced excise duty on petrol and diesel earlier this year, sacrificing nearly Rs 14,000 crore in monthly revenue, but under-recoveries continued to widen.
Petroleum Minister Hardeep Singh Puri also recently warned that state-run fuel retailers could see their entire FY26 profits wiped out if crude oil prices remain elevated.
Speaking at the CII Annual Business Summit 2026, Puri said the three public sector fuel retailers were collectively losing nearly Rs 1,000 crore every day.
Industry estimates suggest Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) could report combined losses of nearly Rs 1.2 lakh crore in the first quarter of FY27 alone.
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City-Wise Petrol and Diesel Prices
Following the revision, petrol prices in major metros now stand at:
Delhi: Rs 97.77 per litre
Mumbai: Rs 106.68 per litre
Kolkata: Rs 108.74 per litre
Chennai: Rs 103.67 per litre
Diesel prices have risen to:
Delhi: Rs 90.67 per litre
Mumbai: Rs 93.14 per litre
Kolkata: Rs 95.13 per litre
Chennai: Rs 95.25 per litre
Fuel rates continue to vary across states due to differences in VAT structures.
Long Queues and Panic Buying in Some Cities
The announcement of the price hike triggered panic buying in several parts of the country.
Fuel stations in parts of Rajasthan and Gujarat reportedly witnessed long queues late Thursday night and early Friday morning, with some outlets displaying “No Fuel” and “Out of Stock” signs after stocks ran low.
Consumers rushed to fill tanks before revised prices were fully implemented across local outlets.
Inflation Worries Return
The latest fuel price increase is expected to have a wider ripple effect on the economy.
Economists say petrol and diesel prices influence transportation, logistics and freight costs, which eventually feed into the prices of goods and services.
India’s retail inflation, measured through the Consumer Price Index (CPI), rose to 3.48 per cent in April 2026 from 3.40 per cent in March. Wholesale price inflation climbed to 8.3 per cent, a 42-month high, largely driven by rising fuel and energy costs.
Consumers in several cities expressed concern that the latest increase would further strain household budgets.
Fuel Freeze Finally Ends
Fuel prices had largely remained unchanged since April 2022, barring a one-time reduction of Rs 2 per litre each on petrol and diesel in March 2024 ahead of the Lok Sabha elections.
OMCs had suspended daily price revisions during earlier periods of geopolitical turmoil as well, including after Russia’s invasion of Ukraine.
However, the prolonged surge in crude oil prices linked to the ongoing West Asia crisis appears to have made another retail fuel revision unavoidable.
