The Government of India has raised nationwide petrol and diesel prices by ₹3 per litre [6], ending a four-year price freeze.
This policy shift signals a departure from long-term price stability and reflects the volatility of the global energy market. The move is expected to increase transportation costs and potentially drive inflation across the country.
Officials said the revisions were linked to rising crude-oil prices and disruptions to global energy supplies [2]. These disruptions are tied to the conflict in the Hormuz and Iran region [2].
In addition to liquid fuels, CNG prices increased by ₹2 per kg [7] in Delhi and Mumbai. In Delhi, the price of CNG now stands at ₹79 per kg [8].
City-specific rates for petrol and diesel have shifted significantly. In Delhi, petrol is now ₹97.77 per litre [1] and diesel is ₹90.67 per litre [2]. Mumbai residents face higher costs, with petrol priced at ₹106.68 per litre [3] and diesel at ₹93.14 per litre [4]. In Kolkata, petrol has reached ₹108.74 per litre [5].
While most reports indicate a ₹3 increase for diesel [6], some reports have cited higher increases of nearly ₹6 per litre. The government has not provided a detailed breakdown of the specific tax or tariff adjustments that led to the current rates.
“Petrol and diesel prices were raised by ₹3 per litre nationwide, ending a four-year price freeze.”
The termination of a four-year price freeze suggests that the Indian government can no longer absorb the cost of crude oil volatility internally. By passing these costs to consumers, the state is reacting to geopolitical instability in the Strait of Hormuz, a critical chokepoint for global oil transit. This shift may lead to a ripple effect in the domestic economy, as higher fuel costs typically increase the price of transporting goods and services.
