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India has increased retail fuel prices for the first time in four years, with petrol and diesel rates rising by more than 3% as the country responds to mounting pressure from global crude oil costs.
According to fuel retailers in Delhi, petrol and diesel prices have been increased by Rs.3 per litre ($0.03), marking one of the most significant adjustments in recent years. The move is aimed at helping state-run companies recover losses accumulated due to higher international oil prices.
The surge in global crude prices was triggered after disruptions in the Strait of Hormuz following conflict-related tensions involving the United States and Israel and Iran. Oil prices briefly surged above $120 per barrel before easing to the $100–$105 range.
India, one of the last major economies to revise fuel prices upward, now sees petrol priced at ₹97.77 per litre and diesel at ₹90.67 per litre in Delhi. This represents an increase of around 3.2% for petrol and 3.4% for diesel compared to previous rates.
Economists believe the direct impact on inflation will remain limited, adding roughly 15 basis points to consumer price inflation. However, experts warn that indirect effects could be more significant across transport and goods pricing.
India’s fuel retail market is dominated by state-run companies including Indian Oil Corporation, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited, which together control the majority of fuel stations nationwide.
These companies typically adjust petrol and diesel prices in coordination, reflecting global crude movements and domestic policy considerations.
Earlier, Prime Minister Narendra Modi urged citizens to adopt fuel-saving measures, including reduced travel, work-from-home options, and lower energy consumption, as rising global prices put pressure on India’s foreign exchange reserves.
Analysts and opposition figures have also suggested that fuel price revisions were delayed during recent state elections. The polls concluded this month, with the ruling Bharatiya Janata Party strengthening its position in several states.
Officials had previously indicated that state fuel retailers were absorbing significant losses on diesel and petrol sales due to controlled pricing policies.
