Fuel prices in India have increased once again, marking the third hike within 10 days, as state-run oil retailers continue to respond to rising global crude oil prices triggered by the prolonged conflict in West Asia.
Latest Price Increases
On May 23, petrol prices were increased by ₹0.87 per litre, taking the rate to ₹99.51 per litre, while diesel prices rose by ₹0.91 per litre to ₹92.49 per litre. This comes after two earlier revisions this month, including a sharp ₹3 per litre hike followed by another increase of nearly 90 paise per litre.
Impact of West Asia Conflict
The repeated hikes come amid mounting pressure on India's fuel economy due to surging crude oil prices linked to the ongoing conflict in the Persian Gulf and to disruptions in the Strait of Hormuz, a key global energy route.
According to reports, the war in the Middle East, now nearing three months, has significantly disrupted oil and gas tanker movement, affecting nearly 40% of India's crude oil imports, 50% of LNG, and 90% of LPG supplies.
Crude Price Surge
India's crude basket price, which stood at around $69 per barrel in February 2026, surged to nearly $109-114 per barrel by May, reflecting a rise of over 58%. Since India imports close to 90% of its crude oil requirements, domestic fuel prices remain highly vulnerable to fluctuations in global markets.
Retail fuel prices had largely remained stable since April 2022, except for a ₹2 per litre reduction in March 2024. State-owned oil marketing companies - Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL), had paused daily fuel price revisions to shield consumers from global volatility after the Russia-Ukraine conflict.
To reduce the burden on consumers and oil firms, the central government had earlier cut excise duty on petrol and diesel by ₹10 per litre in March. However, concerns continue over fuel taxation, as several states have not reduced VAT or sales tax, despite fuel prices remaining under pressure.
Future Outlook
With geopolitical tensions continuing and crude prices staying elevated, experts warn that fuel prices could remain volatile in the coming weeks, adding pressure to household budgets and India's import bill.
