India Hikes Petrol, Diesel Prices By Rs 3 Amid Iran War

Oil marketing companies have raised retail prices of petrol and diesel by Rs 3 per litre across India with immediate effect. This is the first major revision in fuel prices in nearly four years, triggered by soaring global crude oil prices due to the ongoing conflict involving Iran in West Asia.

In Delhi, petrol now costs Rs 97.77 per litre, up from Rs 94.77, while diesel has increased to Rs 90.67 per litre from Rs 87.67. Similar increases have been implemented in Mumbai, Kolkata, Chennai and other cities, with final prices varying according to local taxes and freight costs.

Oil companies had been absorbing substantial under-recoveries running into thousands of crores every month as international crude prices remained elevated above $100 per barrel amid supply disruptions linked to the Iran war. Escalating tensions in the Middle East have pushed up input costs for Indian refiners. Despite previous government interventions such as excise duty reductions, public sector oil marketing companies faced mounting losses estimated at around Rs 30,000 crore per month.

Analysts had been expecting a price adjustment in mid-May as the pressure became unsustainable. Today’s nationwide hike aligns retail prices more closely with current market realities.

The increase is likely to raise transportation and logistics costs, which could translate into higher prices for daily essentials and add to inflationary pressures. Consumers are advised to check exact prices at their local fuel stations, as state taxes cause slight variations. Further changes may occur depending on global crude trends and the evolving geopolitical situation in West Asia.

The government continues to focus on diversifying energy sources and strengthening strategic reserves to reduce the impact of such international shocks.