Fuel prices rise again as petrol, diesel hiked by 90 paise a litre

Petrol and diesel prices were hiked by around 90 paise per litre on Tuesday, May 19, marking the second increase in fuel rates within a week after state-run oil marketing companies ended a nearly four-year freeze on price revisions.
With the latest revision, petrol prices in Delhi rose to Rs 98.64 per litre from Rs 97.77, while diesel increased to Rs 91.58 from Rs 90.67 per litre, according to industry sources.
The hike comes just days after fuel prices were increased by Rs 3 per litre on May 15, the first such revision in more than four years, amid soaring global crude oil prices triggered by the ongoing Iran conflict and disruptions in oil supply routes through the Strait of Hormuz.
Fuel prices vary across states due to differences in Value Added Tax (VAT). In Mumbai, petrol now costs Rs 107.59 per litre and diesel Rs 94.08. In Kolkata, petrol is priced at Rs 109.70 and diesel at Rs 96.07, while in Chennai, petrol costs Rs 104.49 and diesel Rs 96.11 per litre.
Global crude oil prices have surged by more than 50 per cent since the escalation of tensions between Iran, Israel and the United States earlier this year. Despite the increase in international crude rates, domestic fuel prices had remained largely unchanged since April 2022, barring a Rs 2 per litre cut in March 2024 ahead of the Lok Sabha elections.
On Monday, Petroleum Ministry Joint Secretary Sujata Sharma said the May 15 price hike had reduced oil companies’ losses by around 25 per cent, though retailers were still suffering losses of nearly Rs 750 crore per day.
According to Crisil, oil marketing companies were losing around Rs 10 per litre on petrol and Rs 13 per litre on diesel even after the earlier hike.
The rise in petrol and diesel prices follows recent increases in compressed natural gas (CNG) and LPG rates. CNG prices were raised twice this month, while domestic LPG cylinder prices were increased by Rs 60 in March.
Industry experts said the latest increase appeared to be a calibrated move aimed at easing financial pressure on oil companies without causing a major inflation shock. However, they warned that higher fuel prices are likely to add to inflationary pressures.
India’s retail inflation, measured by the Consumer Price Index (CPI), rose to 3.48 per cent in April 2026 from 3.40 per cent in March. Wholesale price inflation touched 8.3 per cent, the highest in 42 months, driven largely by rising fuel and energy costs.
Prime Minister Narendra Modi recently urged citizens to conserve fuel, reduce unnecessary travel and adopt work-from-home practices to ease pressure on the country’s oil import bill and foreign exchange reserves.