Govt hikes petrol, diesel prices days after PM Modi's save-fuel clarion call

Public Lokpal
May 15, 2026

New Delhi: Petrol and diesel prices were hiked by Rs 3 per litre each on Friday, the first rate increase in more than four years, amid mounting losses of fuel retailers due to surging global crude prices.

The increase comes 16 days after assembly elections concluded in Assam, Kerala, Tamil Nadu and West Bengal. Fuel prices had remained unchanged through the polling period despite a sharp rise in international oil prices triggered by the West Asia conflict.

Petrol price was hiked to Rs 97.77 per litre from Rs 94.77 in the national capital. Diesel now costs Rs 90.67 as against Rs 89.67 per litre previously, industry sources said.

Prices have remained on freeze since April 2022 but for a one-off reduction by Rs 2 a litre each on petrol and diesel in March 2024, just before Lok Sabha elections. Rates were last hiked in April 2022.

Petrol in Mumbai now costs Rs 106.68 a litre and diesel comes for Rs 93.14 per litre. In Kolkata, petrol now costs Rs 108.74 per litre and diesel Rs 95.13, while in Chennai, prices increased to Rs 103.67 for petrol and Rs 95.25 for diesel.

Rates vary across states due to differences in value-added tax.

Although fuel prices are officially deregulated, revisions are often influenced by political considerations.

Energy prices globally shot up after the US-Israel attack on Iran on February 28, and the subsequent retaliation by Tehran effectively shut down the Strait of Hormuz - the sea lane through which a fifth of the world's oil and gas transits. Crude oil, the input raw material for making petrol and diesel, surged above USD 120 per barrel during the peak of the West Asia conflict, as opposed to the USD 70-72 range before the conflict.

More recently, prices have eased but remained elevated around the USD 104-110 per barrel range. This triggered massive losses for state-owned fuel retailers, but retail rates remained unchanged as five critical states went to polls.

The oil companies were losing Rs 14 per litre on petrol, Rs 42 a litre on diesel and Rs 674 a litre on cooking gas LPG before Friday's decision.

PTI