India increased petrol and diesel prices by ₹3.91 per litre, representing a 4.4% hike that is the smallest increase among major economies, excluding directly subsidizing Gulf nations. According to reports from ABP Live, this modest increase has been undertaken after 76 days of complete absorption of costs by public sector oil companies. An Indian Oil official noted that the increase restores only part of the rise in crude prices, with the company absorbing costs for 76 days before implementing the modest price adjustment.
The contrast with international markets is stark, as reported by ABP Live. Emerging markets have seen fuel prices rise by over 50%, with Myanmar, Malaysia, Pakistan, and the UAE all experiencing petrol increases of more than half their pre-war prices. In advanced economies, American petrol prices have risen by 45% and diesel by 48%, while European countries show varied increases with the UK up 19% on petrol and 34% on diesel. Japan, South Korea, and Singapore have kept petrol price increases below 20%, with Singapore registering a 65% jump in diesel prices.
The price increase has significantly reduced losses for government-owned oil companies, as reported by ABP Live. The ₹3.91 per litre increase has helped reduce daily losses from ₹1,000 crore to ₹750 crore, representing a 25% reduction in losses. An Indian Oil official explained that until May 15, 2026, public sector oil marketing companies held petrol and diesel prices essentially unchanged from their February 23, 2026 levels, accumulating daily under-recoveries of around ₹1,000 crore.
During the 'Hormuz 76' period between February 23 and May 14, 2026, India maintained retail fuel prices largely unchanged despite global disruptions. As per Times Now India, retail fuel prices in India rose only 4.2% for petrol and 4.4% for diesel during this period, compared with increases ranging from 20% to over 100% in several countries. Myanmar saw petrol prices jump 89.7% and diesel 112.7%, while the US recorded increases of 44.5% and 48.1%, respectively. At peak Brent crude levels of around $126 per barrel, the government was absorbing nearly ₹24 per litre on petrol and ₹30 per litre on diesel.
The price adjustment has resulted in significant regional disparities due to varying VAT structures across states. According to Times Now India, states such as Andhra Pradesh, Telangana, and Kerala continued to levy among the highest VAT rates on petrol and diesel, resulting in pump prices above ₹107 per litre in some regions. In contrast, BJP-ruled states such as Gujarat, Uttar Pradesh, Delhi, Haryana, Goa, and Assam recorded among the lowest retail fuel prices in the country. Additionally, LPG protection was handled separately, with oil marketing companies absorbing approximately ₹40,000 crore in losses to shield households from global price shocks.
