The Indian government and Oil Marketing Companies increased petrol and diesel prices by at least Rs 3 per litre on May 15, 2024 [2].

This price adjustment ends a four-year freeze that began in April 2022 [3]. The move signals a shift in how the state manages fuel costs during periods of global instability and rising crude oil prices.

In Kolkata, the price of petrol has risen to Rs 108 per litre [1]. While some reports state the increase is Rs 3 per litre [2], other Oil Marketing Companies reported increases up to Rs 3.60 per litre [5].

The hike follows a call from Prime Minister Narendra Modi to curb fuel consumption. Officials said geopolitical tensions—specifically the war in Iran—and the rising cost of crude oil were primary drivers for the decision [3].

Fuel prices in India often fluctuate based on international market trends and government taxation. This specific increase is the first significant adjustment to the retail price since the freeze was implemented to protect consumers from volatility [3].

Nationwide impacts vary by state due to differing local taxes, but the base increase applies across the country [2]. The government has not provided a specific timeline for further adjustments as the West Asia crisis continues to affect global energy supplies [5].

“Petrol now costs Rs 108 per litre in Kolkata.”

The lifting of the fuel price freeze indicates that the Indian government can no longer absorb the rising costs of crude oil caused by geopolitical instability in West Asia. By aligning domestic prices with global trends, the government is shifting the financial burden of energy volatility from the state and oil companies to the end consumer.