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

New Delhi: Following days of anticipation, the Centre has hiked the prices of petrol and diesel by Rs 3 per litre across the country as a response to climbing global crude oil costs driven by the war in West Asia, as per news reports.

This adjustment brings the price of petrol in Delhi up to Rs 97.77 from its previous Rs 94.77, while diesel has shifted from Rs 87.67 to Rs 90.67 per litre.

Notably, this comes amid a call for fuel conservation as the world faces an energy crisis amid the West Asia war, which led to a blockade in the significant maritime trade route, the Strait of Hormuz.

Revised Prices in Metro Cities

Major metropolitan areas also saw price adjustments, with petrol climbing to Rs 108.74 in Kolkata, Rs 106.68 in Mumbai, and Rs 103.67 in Chennai. These updates reflect specific increases ranging from Rs 2.83 to Rs 3.29 per litre across the different cities.

Diesel prices also underwent a significant surge in other metros, hitting Rs 95.13 in Kolkata, Rs 93.14 in Mumbai, and Rs 95.25 in Chennai.

Brent oil prices at record-high

The Brent oil prices have been at a record high in the wake of the US-Israel and Iran war, which began on February 28 this year. The Brent oil price has been hovering over USD 100 per barrel as the US and Iran are attempting to mediate for a long-term ceasefire in the region.

The widening of the ambit of the war engulfed the West Asian countries, which are major suppliers of fuel. However, India has maintained that there is no shortage of fuel and has adequate energy supplies.

On May 12, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said India ensured stable fuel prices and uninterrupted energy supplies despite global disruptions and rising crude oil prices, while significantly boosting domestic LPG production to meet growing demand. 

Addressing the CII Annual Business Summit 2026, Puri highlighted India's resilience in handling global energy shocks through strong policy coordination and effective supply management.

"At a time of global supply shocks and rising crude prices, India ensured seamless availability of petrol, diesel, and LPG across the country, with no reports of shortages. Despite sharp global volatility, fuel prices have largely remained unchanged since 2022, reflecting strong policy coordination and effective supply management," the minister said.

Ministry of Petroleum and Natural Gas had also said the government has taken several effective measures to ensure uninterrupted fuel supplies for consumers and that the crude oil inventories remain stable, refineries are operating at optimum levels, and adequate stocks of petrol, diesel and LPG are available across the country with no reported dry-outs.

Substantial losses faced by oil companies

Government data indicates that state-run oil marketing companies- including IOCL, BPCL, and HPCL- have faced substantial losses, estimated at Rs 20 per litre for petrol and Rs 100 per litre for diesel, due to the gap between high global oil costs and frozen domestic retail rates, as per news reports.

However, alternative estimates suggest that the actual "under-recovery" on diesel sales may be significantly lower than the figures provided by the government.

Excise duty hike on fuels 

Earlier, to prevent an immediate spike in costs, the Finance Ministry intervened on March 27 by slashing the excise duty on both petrol and diesel by Rs 10 per litre.

Also in March, Nayara implemented its own price hikes, raising petrol by Rs 5 per litre and diesel by Rs 3 per litre.

Consequently, Nayara stations in Haryana are retailing petrol at approximately Rs 100.71 and diesel at Rs 91.21, while in Uttar Pradesh, the rates stand at Rs 100.20 and Rs 91.10 respectively. These price discrepancies between states are primarily due to varying local Value-Added Tax (VAT) rates.