After keeping petrol and diesel prices largely unchanged for more than four years, fuel prices jumped by Rs 3 per litre on Friday amid elevated global crude oil rates linked to the ongoing West Asia conflict.
The hike comes as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) faced mounting losses due to rising import costs. Crude oil prices had surged above $120 per barrel during tensions around the Strait of Hormuz before easing slightly to the $104-110 range. The revision has pushed petrol prices above Rs 100 per litre in several cities.
How much will citizens have to pay in each city
| City | Petrol Price (Rs/litre) | Diesel Price (Rs/litre) |
|---|---|---|
| Delhi | 97.77 | 90.67 |
| Mumbai | 106.68 | 93.14 |
| Kolkata | 108.74 | 95.13 |
| Chennai | 103.67 | 95.25 |
Reasons behind fuel price hike
- One of the biggest reasons behind the hike is the sharp rise in global crude oil prices following tensions in West Asia and disruptions around the Strait of Hormuz, a key global oil transit route.
- Crude oil prices surged above USD 120 per barrel during the peak of the conflict, compared to nearly USD 70 per barrel before tensions escalated.
- Although crude prices have eased slightly, they continue to remain elevated in the USD 104-110 per barrel range, increasing the burden on fuel retailers.
- As per PTI, Indian Oil Corporation (IOC), Bharat Petroluem Coproration Limited (BPCL), and Hindustan Corpoartion Limited (HPCL) were collectively losing around Rs 1,000 crore per day before Friday’s hike.
- Meanwhile, IOC Director (Refineries) Arvind Kumar told ANI that the fuel price revision was “a very small rise” despite global energy pressures. He added that all 10 Indian Oil Group refineries were operating at more than 100 per cent capacity to ensure uninterrupted fuel supply. “There will be no crisis, no dry out at any of our retail outlets,” Kumar stated.
Hardeep Singh Puri’s official statement on fuel prices
In an X post on May 12, Hardeep Singh Puri said that India maintained “continued fuel availability across more than 1 lakh retail outlets and uninterrupted LPG supply to 33.5 crore households” despite global crude prices nearly doubling. Puri also said that India has diversified crude sourcing from 27 countries in 2006-07 to 41 countries currently and has strategic energy reserves for 74 days.
Why fuel prices vary across India
Fuel prices differ across states because of variations in Value Added Tax (VAT), transportation charges, dealer commissions and other local levies imposed by state governments.
Kolkata currently has the highest petrol price among the four metro cities at Rs 108.74 per litre, while Delhi has the lowest at Rs 97.77. Similar differences are visible in diesel prices as well.
Higher petrol and diesel prices could also increase transportation and logistics costs. India’s wholesale inflation rose to 8.3 per cent in April 2026, partly driven by higher fuel and energy prices. Fuel price hikes can raise freight, logistics and input costs across sectors.