Petrol, Diesel Prices Raised After Over Two-Year Freeze Amid Crude Oil Surge

State-run oil marketing companies on Friday increased petrol and diesel prices by nearly ₹3 per litre across the country, ending a freeze on retail fuel prices that had remained in place since March 2024 despite a sustained rise in global crude oil prices.

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Following the revision, petrol in New Delhi is now priced at ₹97.77 per litre, while diesel costs ₹90.67 per litre. Fuel prices were also revised upward across Mumbai, Kolkata and Chennai, according to data released by Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.

The increase comes shortly after the completion of assembly elections in Assam, Kerala, Tamil Nadu and West Bengal. Fuel prices had remained unchanged during a period of heightened volatility in global oil markets linked to the ongoing conflict in West Asia.

Revised Fuel Prices Across Major Metros

Rising Crude Prices Pressure Fuel Retailers

According to government estimates, public sector oil retailers have been incurring significant losses on fuel sales due to the gap between international crude oil prices and domestic retail rates. Reports indicated that oil marketing companies were losing around ₹20 per litre on petrol and close to ₹100 per litre on diesel sales before the latest revision.

Global crude oil prices have remained elevated due to supply concerns arising from the prolonged conflict in West Asia. India’s crude basket stood at $109.31 per barrel on Friday, according to petroleum ministry data.

In March, the Centre had reduced excise duty on petrol and diesel by ₹10 per litre to ease pressure on consumers and avoid an immediate increase in pump prices.

Private fuel retailers had already revised prices upward earlier this year. Nayara Energy increased petrol and diesel prices in March, while Shell revised rates in April, with pump prices in some cities crossing ₹120 per litre for diesel.

Inflation And Import Bill Concerns

The increase in retail fuel prices is expected to have a wider economic impact through higher transportation and logistics costs. According to an estimate by Bank of Baroda, a $1 rise in crude oil prices over a year can increase India’s annual import bill by around ₹16,000 crore.

India imported crude oil worth $121.8 billion in FY26, compared with $137.2 billion in FY25, aided by relatively lower oil prices during part of the previous fiscal year.

The Department of Economic Affairs, in its monthly economic review, had stated that passing on higher energy costs to consumers was becoming unavoidable as global supply disruptions continued. The report noted that crude oil prices remained above $110 per barrel through much of April.

The latest fuel price revision also comes at a time when the government has been urging citizens to reduce fuel consumption and adopt public transport wherever possible to help lower the country’s foreign exchange outgo on oil imports.