New Delhi, May 19
Petrol and diesel prices were increased by around 90 paise per litre on Tuesday, marking the second hike in fuel rates within a week after state-run oil marketing companies resumed price revisions following a nearly four-year freeze. The latest increase comes amid rising global crude oil prices, growing geopolitical tensions, and mounting pressure on public-sector fuel retailers.
According to industry sources, petrol prices in New Delhi increased from Rs 97.77 per litre to Rs 98.64 per litre, while diesel prices rose from Rs 90.67 per litre to Rs 91.58 per litre.
The latest revision follows a Rs 3 per litre increase in petrol and diesel prices announced on Friday, the first such hike in more than four years. The increase came after global crude oil prices surged sharply following the Iran conflict, forcing oil companies to pass on part of the financial burden after maintaining unchanged rates during key state elections.
Fuel prices continue to vary across states due to differences in the value-added tax imposed by state governments.
Compressed Natural Gas prices were also revised earlier this month. On May 15, CNG prices were increased by Rs 2 per kilogram in several cities, including Delhi and Mumbai. Another increase of Re 1 per kilogram came into effect on Sunday.
Global crude oil prices have risen by more than 50 per cent since the United States and Israeli strikes on Iran on February 28 and Tehran’s retaliation, which disrupted supply routes through the Strait of Hormuz, a major channel for global oil shipments.
Despite rising crude oil prices, retail fuel prices had remained unchanged for months as part of the Centre’s efforts to protect consumers from higher international energy costs. Opposition parties, however, alleged that the freeze was politically motivated due to elections in several states.
The Rs 3 per litre hike announced on Friday came after elections concluded in five states, where the Bharatiya Janata Party expanded its political presence after winning three states, including West Bengal. Industry officials said the earlier increase addressed only a limited portion of the gap between retail fuel prices and actual costs.
Joint Secretary in the Ministry of Petroleum and Natural Gas, Sujata Sharma, had said on Monday that the May 15 increase helped reduce losses of oil companies by nearly one-fourth. However, she stated that public sector oil companies were still incurring losses of nearly Rs 750 crore per day.
Following Tuesday’s revision, petrol and diesel prices have reached their highest levels since May 2022.
Fuel rates had largely remained unchanged since April 2022, except for a one-time reduction of Rs 2 per litre on both petrol and diesel in March 2024 ahead of the Lok Sabha elections.
In Mumbai, petrol is now priced at Rs 107.59 per litre and diesel at Rs 94.08 per litre. In Kolkata, petrol costs Rs 109.70 per litre while diesel is priced at Rs 96.07 per litre. In Chennai, petrol prices rose to Rs 104.49 per litre and diesel prices to Rs 96.11 per litre. Industry sources said the recent hikes remain modest compared to the steep rise in crude oil prices and that fuel retailers are still absorbing substantial losses.
According to Crisil, oil companies were facing losses of nearly Rs 10 per litre on petrol and Rs 13 per litre on diesel even after the May 15 increase. The recent fuel price hikes follow excise duty reductions announced in March and come amid the government’s broader efforts to reduce fuel consumption and contain India’s oil import bill.
Prime Minister Narendra Modi recently appealed for fuel conservation, increased work-from-home practices, and reduced travel as rising energy prices continue to put pressure on India’s foreign exchange reserves and current account deficit. Several state governments have also advised departments to limit official travel, avoid unnecessary physical meetings and operate with reduced office staff.
Private fuel retailers had already revised their rates earlier. Nayara Energy increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre in March, while Shell raised petrol prices by Rs 7.41 per litre and diesel prices 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 per litre.
Domestic LPG cylinder prices were also increased by Rs 60 in March, although industry sources said prices still remain lower than market-linked costs. Oil companies are reportedly losing around Rs 674 on every 14.2-kilogram LPG cylinder. Industry experts said the latest increase appears calibrated to reduce pressure on oil companies without triggering a sharp rise in inflation. However, analysts noted that the increase is still expected to impact inflationary trends in the country.
India’s retail inflation, measured through the Consumer Price Index, rose to 3.48 per cent in April 2026 from 3.40 per cent in March. Wholesale Price Index inflation climbed to 8.3 per cent, marking a 42-month high amid rising fuel and energy prices linked to elevated global crude oil prices.
