Petrol and diesel prices across India have been increased by ₹3 per litre with immediate effect, marking the first major nationwide fuel price hike in nearly four years. The increase comes amid rising global crude oil prices and growing geopolitical tensions in West Asia that have disrupted global energy markets.
State-run oil marketing companies including Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation implemented the revised fuel rates on Friday morning. Following the hike, petrol prices in Delhi rose from ₹94.77 to ₹97.77 per litre, while diesel prices increased from ₹87.67 to ₹90.67 per litre.
The fuel price revision comes after weeks of pressure on oil companies due to rising international crude oil prices. Brent crude recently crossed the $120 per barrel mark during the escalating Iran-West Asia conflict before slightly cooling to around $100–105 per barrel.
Reports suggest the government and oil companies had delayed retail price increases for nearly 11 weeks despite mounting losses. Economists had earlier warned that fuel prices in India were likely to rise gradually because oil marketing companies were reportedly absorbing massive under-recoveries while keeping retail rates unchanged.
The hike is expected to impact transportation costs, logistics expenses, airline fares, and prices of essential commodities across the country. Analysts say higher fuel prices could further add pressure on inflation, which has already risen sharply due to increased global energy costs.
Fuel prices have increased differently across states due to variations in local taxes and VAT rates. In Mumbai, petrol now costs around ₹106.64 per litre, while prices in cities like Hyderabad and Thiruvananthapuram have crossed ₹110 per litre.
The latest revision also comes shortly after Prime Minister Narendra Modi urged citizens to conserve fuel, reduce unnecessary travel, and adopt work-from-home practices wherever possible in response to the ongoing global energy crisis.
Meanwhile, CNG prices have also been increased in several cities, adding further pressure on transportation and household expenses. Experts warn that if the West Asia conflict continues and crude oil prices remain elevated, additional fuel price hikes cannot be ruled out in the coming months.
