The Government of India raised retail prices for petrol and diesel by ₹3 per litre and CNG by ₹2 per kilogram today [1, 2, 3].

This price adjustment marks the first retail fuel hike in four years [5]. The move comes as the country grapples with rising input costs and severe disruptions in global oil markets caused by the blockade of the Strait of Hormuz linked to the war in Iran [1, 2].

The new pricing took effect on Friday, May 15, 2026 [2, 4]. The increases are being felt across four metro cities, including Delhi and Mumbai [4, 5].

In Delhi, the price of petrol now stands at ₹97.77 per litre [7]. In Mumbai, the cost has risen to ₹108.74 per litre [8]. For those using compressed natural gas, the price in Delhi increased to ₹79.09 per kg, up from the previous rate of ₹77.09 [6].

Government officials said the hike was necessary due to the volatility of the global energy market. The blockade in the Hormuz region has restricted the flow of oil, forcing a recalibration of domestic retail prices to account for the higher cost of crude imports [1, 2].

While the government has not provided a timeline for when prices might stabilize, the current hike reflects the immediate pressure of geopolitical instability on the Indian economy [1]. The increase affects all fuel categories, ensuring that both private transport and commercial logistics face higher operational costs starting this week [1, 3].

“Retail fuel costs increase for the first time in four years”

The decision to break a four-year freeze on fuel prices indicates that the geopolitical instability in the Hormuz Strait has reached a threshold where the Indian government can no longer absorb the rising cost of crude imports. Because fuel is a primary input for transportation and agriculture, this hike is likely to trigger secondary inflationary pressures on food and consumer goods across India's major urban centers.