Second Fuel Price Hike in a Week Raises Inflation Concerns

India witnessed another increase in fuel prices on Tuesday as petrol and diesel rates were raised by nearly 90 paise per litre, marking the second hike within a week. The move comes after state-run oil marketing companies resumed fuel price revisions following a freeze that lasted for nearly four years. The fresh increase has pushed retail fuel prices to their highest levels since May 2022, intensifying concerns over inflation and rising transportation costs.

In New Delhi, petrol prices climbed from Rs 97.77 to Rs 98.64 per litre, while diesel prices rose from Rs 90.67 to Rs 91.58 per litre. Similar increases were reported across major cities, with Mumbai, Kolkata and Chennai witnessing notable jumps due to state-level taxes and levies. The latest revision follows a Rs 3 per litre hike announced last Friday, which was the first fuel price increase in over four years.

The surge in fuel prices has been largely attributed to rising global crude oil prices triggered by escalating geopolitical tensions involving Iran, Israel and the United States. Global crude prices have reportedly risen by over 50 per cent since late February after disruptions in oil movement through the Strait of Hormuz, a critical route for global oil shipments. Despite these increases, the government had kept domestic fuel prices unchanged for months to protect consumers during key state elections.

Industry experts stated that even after the recent hikes, oil marketing companies are still incurring heavy losses. According to government officials, the earlier Rs 3 increase helped reduce losses only partially, while oil firms continue to lose nearly Rs 750 crore per day. Reports also suggest that companies are losing around Rs 10 per litre on petrol and Rs 13 per litre on diesel despite the recent revisions.

The rising fuel costs are expected to have a broader impact on inflation and household expenses. Retail inflation had already edged higher in April 2026, while wholesale inflation touched a 42-month high due to soaring fuel and energy costs. The government has also started promoting fuel conservation measures, encouraging work-from-home arrangements and reduced travel to manage the country’s oil import burden and protect foreign exchange reserves.

Private fuel retailers have also sharply increased prices over the past few months. Companies such as Nayara Energy and Shell raised petrol and diesel prices significantly, with Shell fuel prices in Bengaluru crossing Rs 119 per litre for petrol and Rs 123 per litre for diesel. Meanwhile, LPG and CNG prices have also seen multiple increases recently, adding further pressure on household budgets and transportation sectors across the country.

Fuel Prices in Major Cities

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