On May 15, 2026, India's three state-owned oil marketing companies — Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) — raised petrol and diesel prices by ₹3 per litre each. It was the first price hike in more than 49 months. Then, on May 19, 2026, prices were hiked again by 90 paise per litre. In Delhi, petrol now costs ₹98.67 per litre and diesel ₹91.57.
Key Points
First fuel price hike in over 4 years — ₹3 per litre rise on May 15, 2026. Second hike of 90 paise per litre on May 19, 2026. Delhi petrol now costs ₹98.67 per litre; diesel ₹91.57 per litre. Hike triggered by Iran war driving crude oil to ₹113–114 per barrel. Oil companies were reportedly losing ₹100 per litre on diesel before the hike. Second-round inflation effects — vegetable prices and freight expected to rise within weeks.
Background
India imports over 85 percent of its crude oil needs. When global crude prices rise, Indian oil marketing companies either absorb the loss or pass it to consumers. For nearly four years, the government kept prices frozen — largely due to election cycles. Bihar elections in 2025 and the assembly polls in 2026 kept politicians reluctant to raise prices. But after the Iran-Israel-US war began in early 2026 and the Strait of Hormuz was effectively closed, crude shot from $69 per barrel in February to over $113 per barrel. The losses became impossible to absorb any longer.
Main Details
The ₹3 per litre hike came exactly 16 days after assembly election results in Assam, Kerala, Tamil Nadu and West Bengal. In Mumbai, petrol is now ₹106.68 per litre. In Kolkata it is ₹108.74 and in Chennai ₹103.67. India's crude oil import basket averaged $69 per barrel in February 2026 — it surged to $113–114 per barrel after the war began. Oil companies reportedly absorbed losses of ₹100 per litre on diesel and ₹20 per litre on petrol for 11 weeks before the hike became unavoidable.
Reactions
Congress leader Jairam Ramesh said the hike was politically timed and warned it would push inflation toward 6 percent this financial year. Transport unions in Delhi and Mumbai have warned of freight rate increases of 10–15 percent within weeks.
Impact Analysis
Fuel prices affect everything. Transport costs drive up prices of vegetables, medicines, and daily goods. In India, research shows every 10 percent rise in crude oil prices pushes consumer price inflation up by 40–60 basis points. Farmers are especially affected — diesel powers irrigation pumps and tractors.
What Happens Next
Experts believe more hikes are coming. The current correction is described by oil industry insiders as only partial. If the Iran war continues and crude stays above $100 per barrel, another round of hikes cannot be ruled out before the end of June 2026.
FAQ
Q: Why did petrol-diesel prices go up in May 2026?
A: Because global crude oil prices crossed $113 per barrel due to the Iran-Israel-US war, and oil companies could no longer absorb the losses.
Q: What are current petrol prices in Delhi?
A: As of May 19, 2026, petrol in Delhi costs ₹98.67 per litre and diesel ₹91.57 per litre.
Q: Will prices go up further?
A: Industry experts say the current hike covers only a fraction of actual losses. More hikes are possible if crude stays high.
Q: How does fuel price affect daily life?
A: Higher fuel prices raise transport costs, which then increase prices of vegetables, medicines, and other goods within weeks.
Q: What can I do to save money?
A: Use public transport, carpool, switch to CNG vehicles if possible, or reduce discretionary travel as PM Modi also urged.