Petrol and diesel prices were raised by ₹2.61-2.71 per litre on Monday, marking the fourth increase in less than two weeks as state-owned fuel retailers continued to pass on rising international oil prices to consumers. According to The Times of India, the latest revision pushed petrol prices higher by ₹2.61 per litre and diesel by ₹2.71 per litre. This continues the trend of regular price adjustments that began following the resumption of fuel price revisions after a prolonged freeze on May 15, 2026. The cumulative increases in petrol and diesel prices have nearly touched ₹7.5 per litre since fuel price revisions resumed, with the latest revision bringing the total increase to this level. The remarks came hours after the price hike, with the government closely monitoring fuel supplies amid panic buying and dryouts reported in parts of Gujarat, Maharashtra and Uttar Pradesh.
The government on Monday said it is closely monitoring fuel supplies across the country and taking immediate corrective measures to prevent shortages, amid panic buying and dryouts reported at petrol pumps in parts of Gujarat, Maharashtra and Uttar Pradesh. Sujata Sharma, joint secretary in the ministry of petroleum and natural gas, said India has sufficient stocks of petrol, diesel and domestic cooking gas LPG and stressed that supply disruptions at some retail outlets were caused mainly by a sudden surge in demand and logistical constraints. "All retail outlets are being closely monitored at the level of oil marketing companies and the petroleum ministry... supply situation is being closely monitored to immediately address any intermittent dryouts and to replenish stocks of petrol and diesel at all retail outlets," Sharma said. She explained that some regions witnessed a 20-30 per cent jump in fuel demand due to increased agricultural consumption, bulk purchases and consumers shifting from private fuel stations to public sector outlets because of lower prices.
Fuel prices now vary significantly across major Indian cities following the latest revision. As reported by The Times of India, petrol in Telangana (Hyderabad) is currently at ₹115.69 per litre, while diesel prices are at ₹103.82. In Kerala (Thiruvananthapuram), petrol stands at ₹115.49 per litre and diesel at ₹104.40. Kolkata recorded petrol and diesel prices at ₹113.51 and ₹99.82 per litre respectively. Mumbai saw petrol prices rise to ₹111.21 per litre with diesel touching ₹97.83, while Bengaluru's petrol price is now at ₹110.93 and diesel at ₹98.80. Chennai recorded petrol at ₹107.77 per litre and diesel at ₹99.55, and Delhi's petrol prices climbed to ₹102.12 per litre from the earlier ₹99.51, with diesel rates increasing to ₹95.20 per litre from ₹92.49. The price variations across states are primarily due to differences in local taxes, with some states imposing VAT rates as high as 30%.
The sustained price increases reflect the state-owned fuel retailers' strategy to maintain pricing alignment with international oil markets. According to The Times of India, the fourth increase in less than two weeks demonstrates the rapid pace at which fuel prices are being adjusted to reflect global oil price movements. Higher fuel costs are expected to lead to increased expenses for transportation and logistics, which may affect the prices of goods and services, contributing to inflationary pressures and affecting the purchasing power of consumers across various sectors of the economy. The recent increases have only marginally reduced the under-recoveries faced by oil marketing companies, intensifying pressure on state governments to reduce Value Added Tax (VAT), which in some states is as high as 30%. While oil companies continue to face financial strain, the Centre has already absorbed part of the burden through cuts in excise duty, with Finance Minister Nirmala Sitharaman stating that the cut in excise duties will lead to revenue impact of ₹1 lakh crore.
The government has urged consumers to avoid panic buying and conserve fuel wherever possible, with officials advising people to shift to alternatives such as piped natural gas and induction cookers to reduce dependence on conventional fuels. Sujata Sharma noted that the ongoing West Asia crisis had affected nearly 40 per cent of India's crude oil imports, 90 per cent of LPG imports and 65 per cent of natural gas imports. However, she emphasized that India was sourcing crude oil from alternative suppliers and had ramped up LPG production at refineries to nearly 50,000 tonnes per day to maintain domestic supply. Despite recent price hikes, Sharma said state-run oil marketing companies were still incurring losses of nearly ₹600 crore per day, down from around ₹1,000 crore before May 15. Prime Minister Narendra Modi recently urged citizens and government departments to conserve fuel, reduce non-essential travel and encourage remote working amid rising energy costs and pressure on foreign exchange reserves.
