State-run oil marketing companies on Saturday raised petrol and diesel prices by up to 91 paise per litre, marking the third increase in fuel rates this month and taking cumulative hikes to nearly ₹5 per litre in less than 10 days.
The latest revision pushed petrol prices higher by 87 paise per litre and diesel by up to 91 paise across several cities as oil retailers continued to pass on the impact of elevated international crude oil prices amid the ongoing West Asia conflict.
In Delhi, petrol prices rose to ₹99.51 per litre, while diesel prices increased to ₹92.49 per litre. Petrol prices climbed by 87 paise and diesel by 91 paise in the national capital.
The latest increase follows a ₹3 per litre hike announced on 15th May and another increase of around 90 paise per litre on 19 May 2026. With Saturday’s revision, petrol prices in Delhi have risen by ₹4.74 per litre since 15th May, while diesel prices have increased by ₹4.82 per litre.
Across the four metropolitan cities, petrol prices now stand at ₹110.64 per litre in Kolkata, ₹108.49 in Mumbai and ₹105.31 in Chennai. Diesel prices have risen to ₹97.02 per litre in Kolkata, ₹95.02 in Mumbai and ₹96.98 in Chennai.
The increase also extended to compressed natural gas (CNG), with prices in Delhi raised by ₹1 per kilogram to ₹81.09.
The three state-run oil marketing companies — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL)— together account for more than 90% of India’s fuel retail market and revise rates simultaneously.
The latest round of hikes comes after fuel prices had largely remained frozen since April 2022, except for a one-time reduction of ₹2 per litre in March 2024. Oil companies had suspended regular daily revisions to shield consumers from volatility in global crude markets following Russia’s invasion of Ukraine.
However, the recent escalation in tensions in West Asia, particularly around Iran and the Strait of Hormuz, has sharply pushed up global oil prices and increased pressure on domestic fuel retailers.
Industry executives and sector analysts said India’s crude basket, which averaged around US$69 per barrel in February, has surged to around US$113-US$114 per barrel in recent months. Benchmark Brent crude closed at US$103.54 per barrel on Friday, more than 42% higher than levels seen before the conflict escalated in late February.
India imports close to 90% of its crude oil requirements, making domestic fuel prices highly sensitive to fluctuations in global oil prices as well as movements in the rupee against the US dollar.
According to sector experts, oil marketing companies are still incurring under-recoveries of around ₹8-₹10 per litre on petrol and diesel, in addition to losses on domestic LPG sales.
Industry estimates suggest that the three OMCs combined daily revenue losses stood at around ₹1,000 crore after the first price hike on 15 May 2026. These reportedly reduced to around ₹750 crore after the second round of increases and may now have fallen below ₹500 crore per day following Saturday’s revision.
Despite recent volatility, the three public sector oil companies reported strong earnings for FY25-26. Combined net profit of IOC, BPCL and HPCL rose around 130% year-on-year to ₹77,280.65 crore in 2025-26 compared with ₹33,601.57 crore in the previous financial year, supported largely by stable crude prices for most of the year and improved refining and marketing margins.
Government sources last week pointed out that fuel prices had been reduced four times in the past four years, including a significant cut in excise duties on 27 March this year when the special additional excise duty on petrol and diesel was slashed by ₹10 per litre.
Officials also said the government and public sector oil companies had absorbed substantial losses during periods of elevated crude prices. During the Hormuz crisis, authorities claimed that the effective burden absorbed had reached as high as ₹24 per litre on petrol and ₹30 per litre on diesel.
Between 2021 and 2024, oil companies reportedly incurred losses of around ₹24,500 crore, while another ₹40,000 crore burden was borne during 2024-25 to provide relief to LPG consumers.
Meanwhile, the ministry of petroleum and natural gas assured citizens that the country has adequate availability of petrol and diesel and that fuel supplies remain stable across India.
In a statement issued on social media, the ministry urged citizens to avoid panic buying and purchase fuel only according to actual requirements. It said any temporary pressure at select retail outlets was being addressed through continuous supply monitoring and coordinated distribution by oil marketing companies.
Industry analysts indicated that incremental fuel price hikes may continue in the coming weeks if international crude prices remain above US$100 per barrel. According to analysts, meaningful relief in domestic fuel prices is unlikely unless crude stabilises closer to the US$70 per barrel range.
