Kolkata
Petrol and Diesel Prices Raised After More Than Four Years
Fuel prices in India were increased for the first time in more than four years as petrol and diesel rates were hiked by Rs 3 per litre each on Friday. The move comes amid mounting losses faced by oil marketing companies due to elevated global crude oil prices triggered by the ongoing West Asia conflict.
Petrol and diesel prices were increased by Rs 3 per litre each on Friday, marking the first fuel price hike in more than four years amid rising global crude oil prices and mounting losses suffered by fuel retailers.
Following the revision, petrol prices in New Delhi rose to Rs 97.77 per litre from Rs 94.77, while diesel prices increased to Rs 90.67 per litre from Rs 87.67, according to industry sources.
In Mumbai, petrol now costs Rs 106.68 per litre and diesel Rs 93.14. In Kolkata, petrol prices climbed to Rs 108.74 and diesel to Rs 95.13 per litre. Meanwhile, in Chennai, petrol rose to Rs 103.67 and diesel to Rs 95.25 per litre.
The hike comes 16 days after Assembly elections concluded in Assam, Kerala, Tamil Nadu, and West Bengal. Fuel prices had remained unchanged during the election period despite a sharp increase in global oil prices caused by tensions and conflict in West Asia.
According to industry estimates, state-run oil marketing companies — Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited — were suffering substantial losses due to elevated crude oil costs.
Crude oil prices surged sharply after conflict escalated in West Asia following military tensions involving the US, Israel, and Iran. During the peak of the crisis, crude oil prices crossed USD 120 per barrel compared to around USD 70-72 before the conflict. Although prices have moderated slightly, they continue to remain high in the USD 104-110 range.
Officials indicated that oil companies were losing around Rs 14 per litre on petrol and Rs 42 per litre on diesel before the latest price revision. Union Petroleum Minister Hardeep Singh Puri had earlier stated that daily losses of fuel retailers had crossed Rs 1,000 crore.
The government had previously reduced excise duty on petrol and diesel by Rs 10 per litre in March in an attempt to cushion consumers from rising global energy prices.
Analysts said the latest increase appears calibrated to partially reduce the financial burden on oil companies without causing a major inflationary shock. However, economists warned that higher fuel prices could still affect inflation indirectly by increasing transportation, freight, logistics, and production costs across sectors.
India’s retail inflation, measured by the Consumer Price Index (CPI), rose to 3.48 percent in April 2026, while wholesale inflation climbed to 8.3 percent due to elevated fuel and energy costs.
The fuel price hike also follows increases announced earlier by private retailers such as Nayara Energy and Shell.
Prime Minister Narendra Modi recently urged citizens to reduce fuel consumption and adopt public transport and work-from-home practices more frequently to reduce pressure on oil imports and foreign exchange outflows.
