About 16 days after assembly elections concluded in Assam, Kerala, Tamil Nadu and West Bengal, petrol and diesel prices are increased by ₹3 per litre each on Friday. This marks the first fuel price hike in more than four years as state-run oil marketing companies (OMCs) grapple with mounting losses triggered by surging global crude oil prices amid the ongoing West Asia conflict.
The revised rates came into effect immediately nationwide.
In the national capital, petrol price rose to ₹97.77 per litre from ₹94.77 earlier, while diesel price increased to ₹90.67 per litre from ₹87.67.
Fuel prices had remained unchanged throughout the polling period despite a sharp spike in international crude oil prices following escalating tensions in West Asia.
In Mumbai, petrol will now cost ₹106.68 per litre, while diesel price has risen to ₹93.14 per litre. In Kolkata, petrol price increased to ₹108.74 per litre and diesel to ₹95.13 per litre. In Chennai, petrol will now cost ₹103.77 per litre, while diesel price has been raised to ₹95.35 per litre.
According to reports, the increase is only a fraction of the hike required to fully offset the rise in global energy prices since the start of the Middle East conflict.
Apart from petrol and diesel, oil companies have also increased compressed natural gas (CNG) prices by ₹2 per kg. In Delhi, CNG will now cost ₹79.09 per kg with effect from Friday.
The price revision comes as OMCs continue to suffer heavy under-recoveries for keeping retail fuel prices unchanged despite soaring crude oil prices in the international market.
According to Sujata Sharma, joint secretary in the Union petroleum ministry, the combined under-recovery on petrol, diesel and LPG has reached nearly ₹30,000 crore every month.
"Our OMCs are buying crude oil at higher rates but are not selling at corresponding rates to protect consumers. This impacts their finances," Ms Sharma says.
She added that the Union government had already reduced excise duties on petrol and diesel, resulting in a revenue sacrifice of nearly ₹14,000 crore every month, but losses continue to widen.
Petroleum minister Hardeep Singh Puri had earlier warned that the profits of state-run fuel retailers could be wiped out if crude oil prices remain elevated.
Speaking at the CII Annual Business Summit 2026 earlier this week, Mr Puri says OMCs are currently losing nearly ₹1,000 crore every day due to elevated crude prices and restrictions on retail price revisions.
He estimated that combined quarterly losses of oil firms could touch nearly ₹1 lakh crore if crude prices continue to remain at current levels.
Global crude oil prices have surged past the US$100 per barrel mark amid fears of prolonged supply disruptions linked to the escalating US-Iran conflict and wider tensions in the Middle East.
Industry estimates indicate that Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd could together report losses of nearly ₹1.2 lakh crore in the first quarter of FY26-27 if current crude price trends persist.
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