NEW DELHI: Petrol and diesel prices were hiked by Rs 3 per litre each on Friday after state-run oil companies faced mounting losses due to a sharp rise in global crude oil prices triggered by the ongoing West Asia conflict.Petrol in Delhi now costs Rs 97.77 per litre, up from Rs 94.77, while diesel prices have risen to Rs 90.67 per litre from Rs 87.67, according to industry sources.The increase comes 16 days after assembly elections concluded in Assam, Kerala, Tamil Nadu and West Bengal. Fuel prices had remained unchanged throughout the election period despite a steep rise in international crude oil prices.Petrol prices in Mumbai have risen to Rs 106.68 per litre, while diesel now costs Rs 93.14.In Kolkata, petrol prices crossed Rs 108, reaching Rs 108.74 per litre, while diesel climbed to Rs 95.13. In Chennai, petrol now costs Rs 103.67 per litre and diesel Rs 95.25 per litre.Fuel prices differ across states because of varying VAT rates.
Why were fuel prices increased?
According to PTI, industry sources described the latest increase as a “calibrated” step aimed at partially easing pressure on oil marketing companies without causing a major inflation shock.What next?The fuel price hike is expected to have an indirect impact on inflation by increasing transportation, logistics and input costs across sectors.India’s retail inflation, measured by the Consumer Price Index (CPI), rose to 3.48 per cent in April 2026 from 3.40 per cent in March. Wholesale price inflation (WPI) surged to 8.3 per cent, marking a 42-month high, largely driven by higher fuel and energy prices.Economists told PTI that petrol anddiesel priceincreases affect not just transport costs but also food prices, manufacturing expenses and supply chains. The price revision also comes amid the Centre’s broader push for fuel conservation and reducing foreign exchange outflows.Prime Minister Narendra Modi recently urged citizens to reduce fuel consumption, use public transport, opt for carpooling and work from home wherever possible to conserve foreign exchange spent on oil imports.
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