Beyond The 110-Mark: This Indian City Now Has Country’s Most Expensive Petrol, Overtakes Mumbai and Kolkata

New Delhi: Millions of Indian consumers woke up to a significant jump in transportation costs today as state-owned oil marketing companies (OMCs) implemented a nationwide hike of Rs 3 per litre for both petrol and diesel. 

The revision, the first major price correction in nearly four years, comes as the global energy market reels from the ongoing US-Iran war and the effective blockade of the Strait of Hormuz.

Who is Paying the Most?

While today's price hike is uniform at the base level, varying state taxes and local cess have driven retail rates to record highs. Hyderabad currently leads the country’s major metros with the highest petrol rate, as regional tax structures amplify the impact of the global oil surge.

Which city breached 100-mark

Following the nationwide hike of ₹3 per litre today, the psychological ₹100-mark for petrol has been breached in almost every major Indian metro, leaving Delhi as the only major city still retailing in the double digits at ₹97.77.

Hyderabad currently leads the price surge with petrol retailing at ₹110.89 per litre, closely followed by Kolkata at ₹108.74 and Mumbai at ₹106.68. Other southern hubs like Bengaluru and Chennai have also seen prices climb well past the century mark, reaching ₹106.21 and ₹103.67 respectively.

In the latest update following the nationwide price hike, petrol in Visakhapatnam is now retailing at ₹103.84 per litre, while rates in Kochi have surged even higher to ₹108.41 per litre.

The ‘Why’ Behind Hike

The price surge is a direct consequence of the Iran War, which has seen Brent crude oil hover near $126 per barrel. The closure of the Strait of Hormuz- a chokepoint responsible for 20% of the world's oil trade- has created what the International Energy Agency (IEA) calls the "largest supply disruption in history."

Oil Minister Hardeep Singh Puri noted that OMCs had been bearing losses of nearly ₹1,000 crore per day to shield consumers, but the sustained high costs became "unsustainable" for their balance sheets. Even with today's ₹3 increase, experts suggest that prices remain significantly lower than the actual market value of imported crude.

The Timing: Days After PM's 'Save Fuel' Appeal

The hike comes just five days after Prime Minister Narendra Modi’s high-profile address on May 10, where he urged citizens to practice fuel conservation as a "national duty." 

The PM had warned that the global crisis would require collective resilience, signaling that the era of frozen prices was coming to an end.

Economic Outlook

Economists warn that the hike will have a "cascading effect" on inflation. With diesel prices crossing ₹90 in Delhi and nearing ₹100 in Hyderabad, freight and logistics costs are expected to rise, likely leading to higher prices for essential commodities, including vegetables and milk, in the coming weeks.

While India maintains roughly 60 days of strategic oil reserves, the government has already begun promoting "crisis-mode" measures, including encouraging work-from-home and increased use of public transport to mitigate the impact of the surge.

Also Read: Petrol, Diesel Rates Hiked By Rs 3/Litre Days After PM Modi's 'Save' Fuel' Appeal As Global Energy Prices Surge Due To Iran War