Petrol and diesel prices were increased by up to 91 paise per litre on Saturday, marking the third hike in less than 10 days this month. In Delhi, petrol rose by 87 paise to ₹99.51 per litre (from ₹98.64), while diesel went up by 91 paise to ₹92.49 per litre (from ₹91.58). This represents the third such increase following the ₹3 upward revision on May 15, 2026, and a further 90 paise hike on May 19, 2026 after four years. The cumulative impact has resulted in fuel prices increasing by nearly ₹5 per litre since May 15, with the latest adjustment bringing the average increase to 90 paise per litre across both fuel variants. The latest revision comes just three days after a hike of around 90 paise per litre announced on Tuesday.
The price increase comes as global crude oil prices continue to remain volatile amid the ongoing conflict in West Asia. International crude oil prices have surged by more than 50 per cent in recent months, with India's crude oil import basket averaging around USD 69 per barrel in February before the conflict began. In the months that followed, prices surged to an average of USD 113–114 per barrel. As reported by The Week, the conflict in the region has created severe financial strain for domestic oil marketing companies, forcing them to implement these price adjustments to compensate for the pressure on state-run oil marketing companies. The government and OMCs had previously insulated domestic consumers from high international prices, with fuel prices remaining unchanged for over four years since April 2022.
Despite the price increases, state-owned oil companies continue to face significant financial challenges. Bharat Petroleum (BPCL) said last week that it continues to incur a revenue loss of ₹25 to 30 per litre on diesel and ₹10 to 14 per litre on petrol despite the higher prices. BPCL, Indian Oil Corp and Hindustan Petroleum together control more than 90 per cent of a network of 103,000 fuel stations. Reports suggest that companies eventually passed on part of the increased burden to consumers after prolonged losses made continued price stability financially unsustainable. The companies had kept retail fuel prices unchanged for nearly 11 weeks before implementing the latest adjustments.
Despite the price increases, the Ministry of Petroleum and Natural Gas has assured that India has adequate petrol and diesel supplies across the country. On May 22, the ministry posted on social media stating that "India has adequate availability of petrol and diesel supplies across the country continue to remain stable." The ministry advised citizens to avoid panic buying and purchase fuel only as per actual requirement, while addressing temporary pressure at some retail outlets. Last week, PM Narendra Modi had urged citizens to curb fuel use and increase the use of public transport, while also appealing to citizens to minimize gold purchases to protect India's forex reserves. The surge in prices comes as companies grapple with severe financial strain due to the West Asia crisis, with the government and OMCs now implementing price adjustments to reflect the unprecedented global oil market conditions.
