Fuel Price Hike: Oil companies on Friday announced a fresh increase in petrol and diesel prices across India, raising fuel costs by around Rs 3 per litre in major cities, including New Delhi. According to reports, petrol prices in Delhi have risen from Rs 94.77 to Rs 97.77 per litre, while diesel rates increased from Rs 87.67 to Rs 90.67 per litre. The revised fuel prices came into effect immediately on Friday. The latest hike comes amid continuing volatility in global crude oil markets linked to the ongoing Iran conflict and disruptions around the Strait of Hormuz.
Fuel Price Hike: Petrol prices cross Rs 100 per litre in several metro cities
The increase has pushed petrol prices above Rs 100 per litre in several major Indian cities.
- In Kolkata, petrol prices climbed by Rs 3.29 to Rs 108.74 per litre, while diesel rates rose by Rs 3.11 to Rs 95.13 per litre.
- In Mumbai, petrol now costs Rs 106.68 per litre after a hike of Rs 3.14. Diesel prices in the city increased by Rs 3.11 to Rs 93.14 per litre.
- Chennai also witnessed a major jump in fuel prices. Petrol rates rose by Rs 2.83 to Rs 103.67 per litre, while diesel prices increased by Rs 2.86 to Rs 95.25 per litre.
- Current fuel prices in New Delhi after the latest hike are ₹97.77 per litre for petrol and ₹90.67 per litre for diesel.
Fuel Price Hike: India had earlier avoided raising fuel prices
Until now, India had largely managed to avoid increasing petrol and diesel prices despite rising global crude oil costs. The government and state-run oil marketing companies (OMCs) were absorbing much of the pressure through tax adjustments, supply management, and controlled pricing measures. Officials had repeatedly assured citizens that there was no plan to introduce rationing of petrol, diesel, or LPG.
Fuel Price Hike: Government says there is no fuel shortage in the country
The Centre recently stated that India is not facing any fuel shortage despite disruptions in global shipping routes caused by the Iran conflict and the Strait of Hormuz crisis. “There is no need to panic. There are sufficient supplies. There is no rationing in place. It’s not going to happen,” Oil Secretary Neeraj Mittal said during the CII Annual Business Summit. Officials also said India currently holds nearly 60 days of fuel reserves and around 45 days of LPG inventories despite ongoing global market instability.
Fuel Price Hike: Oil marketing companies are facing major financial losses
According to recent government discussions and briefings, state-run oil marketing companies are suffering heavy losses due to elevated global crude oil prices and unchanged retail fuel rates over recent months. Officials estimate that OMCs are losing between Rs 1,000 crore and Rs 1,200 crore every day. Reports further suggest that under-recoveries during the first quarter of 2026 may have approached nearly Rs 2 lakh crore.
Fuel Price Hike: India remains vulnerable to global oil price shocks
India continues to depend heavily on imported crude oil for its energy requirements. The country imports nearly 90 percent of its crude oil needs, making the economy highly sensitive to international fuel price fluctuations and geopolitical tensions in oil-producing regions. The ongoing Iran conflict and the Strait of Hormuz crisis have therefore increased concerns about India’s energy security and inflation outlook.
