India's central government and oil marketing companies increased retail prices for petrol and diesel by about ₹3 per litre on Friday [1, 2].
This price adjustment marks the first fuel hike in four years [10]. The move comes as geopolitical instability and rising operational costs pressure the national energy sector, potentially increasing transportation and commodity costs for consumers.
Effective May 15, 2026, the price of compressed natural gas (CNG) also rose by ₹2 per kilogram [3]. In Delhi, the new petrol price is ₹97.77 per litre [4], up from the previous rate of ₹94.77 per litre [5]. Diesel in the capital now costs ₹90.67 per litre [6], compared to the previous price of ₹89.67 per litre [7].
CNG prices in Delhi rose to ₹79.09 per kg [8] from ₹77.09 per kg [9]. These changes were implemented across India, with specific updated listings for major hubs including Mumbai, Kolkata, and Chennai [4].
Officials cited a combination of factors for the price correction. Some reports attribute the hike to rising input costs and widening under-recoveries [1, 2]. Other reports link the increase to the Iran-related Hormuz blockade and the broader conflict involving the U.S. and Iran [2, 3].
An IOCL director described the adjustment as modest. "It's a very small rise," the director said [11].
“"It's a very small rise"”
The decision to break a four-year freeze on fuel prices indicates that geopolitical volatility in the Strait of Hormuz is now outweighing the government's ability to absorb input costs. Because fuel prices often trigger a ripple effect across the supply chain, this hike may lead to increased inflation for essential goods and services throughout India.
