India increased petrol and diesel prices by approximately Rs 3 per litre on May 15, 2024 [1].
This shift marks the end of a four-year price freeze by the central government. The decision follows rising global crude oil costs and supply disruptions that threaten energy stability across the region.
State-run oil marketing companies implemented the hike, with petrol and diesel prices rising by up to Rs 3.60 per litre in some cities [1]. Additionally, CNG prices increased by Rs 2 per kg across the country [3].
In Delhi, the price of petrol was set at Rs 97.77 per litre, while diesel reached Rs 99.67 per litre [2]. These adjustments are a response to tightening energy supplies and surging crude prices driven by the conflict in West Asia and the crisis in the Strait of Hormuz [4].
Despite the price increases, the Indian government said there is no fuel shortage in the country. The government also said there is no plan to introduce rationing of petrol, diesel, or LPG despite disruptions in global energy shipments [5].
Industry analysts note that the price volatility is closely linked to the Iran conflict. The News18 Business Desk said the hikes occurred amid costlier crude and the West Asia crisis [6].
“The Indian government ended a four-year price freeze on fuel.”
The termination of a long-term price freeze indicates that the Indian government can no longer absorb the rising cost of crude oil imports. By passing these costs to consumers, the state is attempting to protect the financial viability of state-run oil marketing companies while navigating a volatile geopolitical environment in West Asia that threatens the primary shipping lanes for energy.
