Petrol and diesel prices were increased once again across India on Saturday, marking the third fuel price hike this month as global crude oil prices continue to rise due to the ongoing West Asia conflict and disruptions around the Strait of Hormuz.
According to state-run fuel retailers, petrol prices in New Delhi increased by ₹0.87 per litre to ₹99.51, while diesel prices rose by ₹0.91 per litre to ₹92.49 per litre.
The latest revision comes as India struggles with the economic fallout of the escalating US-Iran conflict, which has sharply affected global energy markets.
Why Petrol and Diesel Prices Are Rising
India’s fuel prices are closely linked to international crude oil rates because the country imports nearly 90% of its crude oil requirements.
The ongoing crisis in West Asia, especially tensions surrounding the Strait of Hormuz, has pushed crude prices significantly higher over the past few months.
India’s crude oil basket, which averaged around $69 per barrel earlier this year, has reportedly surged to nearly $113–114 per barrel amid fears of supply disruptions.
The Strait of Hormuz remains one of the world’s most critical oil shipping routes, carrying nearly one-fifth of global oil supplies. Any disruption in the region directly impacts oil-importing countries like India.
Third Fuel Price Hike in May 2026
This is the third increase in fuel prices in May:
- Earlier this month, petrol and diesel prices were increased by nearly ₹3 per litre.
- A second hike of around ₹0.90 per litre followed within days.
- Saturday’s revision marks another rise of less than ₹1 per litre.
The repeated hikes have added pressure on household budgets and transportation costs across the country.
State-Run Oil Companies Resume Price Adjustments
India’s major state-run oil marketing companies:
- Indian Oil Corporation
- Bharat Petroleum Corporation Limited
- Hindustan Petroleum Corporation Limited
had largely kept fuel prices stable since April 2022 to shield consumers from global oil market volatility following the Russia-Ukraine conflict.
However, the fresh spike in crude oil prices due to the Iran conflict has forced retailers to resume regular fuel price revisions.
Economic Impact of Rising Fuel Prices
The continued increase in petrol and diesel prices is expected to affect:
- Transportation costs
- Food and essential commodity prices
- Inflation levels
- Household spending
Experts warn that prolonged instability in West Asia could lead to further increases in fuel rates if global crude prices remain elevated.
Government Monitoring Situation
The Indian government is closely monitoring the energy situation and exploring alternatives such as:
- Renewable energy expansion
- Increased biogas production
- Strategic fuel reserves
- Diversified crude oil sourcing
Prime Minister Narendra Modi recently urged ministries to focus on energy security and reduce dependence on volatile global oil markets.
