The Indian government increased retail prices for petrol and diesel by Rs 3 per litre on Friday, May 15, 2026 [1, 2].

This adjustment marks the first fuel price hike in more than four years [7]. The move follows a period of price stability that has ended as global economic pressures and geopolitical tensions force a correction in retail costs.

Compressed Natural Gas (CNG) prices also rose by Rs 2 per kg [1]. In Delhi, petrol prices moved from Rs 94.77 to Rs 97.77 per litre [4], while diesel prices increased from Rs 87.67 to Rs 90.67 per litre [5].

The price surge is attributed to rising global crude oil prices. These increases are driven by the ongoing conflict in West Asia and supply disruptions in the Strait of Hormuz [6, 1].

Oil marketing companies have faced significant financial strain due to the gap between international crude costs and domestic retail prices. Reports indicate these companies have been losing Rs 1,600 crore per day [6].

The price changes are being implemented nationwide, affecting major hubs including Delhi and Kolkata. In Kolkata, the petrol rate has crossed the 100 mark, reaching Rs 108.74 per litre, while diesel is priced at Rs 95.13 [8].

“The first fuel price hike in more than four years”

The decision to end a four-year price freeze suggests that the Indian government can no longer absorb the losses of oil marketing companies amid volatile global markets. Because crude oil is a primary input for transport and logistics, this hike is likely to trigger inflationary pressure on essential goods and services across the country.