Petrol-Diesel Prices Hiked by ₹3 Per Litre, CNG Also Costlier

Petrol and diesel prices increased by ₹3 per litre across major cities from May 15. CNG prices also rose by ₹2 per kg amid rising crude oil prices globally.

Fuel Prices Rise After Nearly Two Years

Petrol and diesel prices across India have been increased by around ₹3 per litre, while CNG rates have also gone up by nearly ₹2 per kilogram in major cities. The revised prices came into effect from May 15.

In Delhi, petrol is now being sold at ₹97.77 per litre, while diesel has reached ₹90.67 per litre. This is the first major fuel price hike in nearly two years and comes amid a sharp rise in global crude oil prices.

The increase is expected to impact transportation costs, household budgets and overall inflation in the coming weeks.

New Petrol Prices in Major Cities

New Diesel Prices in Major Cities

Note: Prices are indicative and may vary slightly depending on local taxes.

Why Have Fuel Prices Increased?

The primary reason behind the latest hike is the sharp increase in international crude oil prices. Before tensions escalated between Iran and the United States, crude oil was trading near $70 per barrel. It has now crossed the $100 per barrel mark due to fears of supply disruption in the global energy market.

Oil marketing companies were reportedly under heavy financial pressure because they had not revised fuel prices for a long time despite rising import costs. The latest hike is being seen as an attempt to reduce mounting losses.

Industry experts believe that if crude oil prices remain elevated for a prolonged period, fuel prices in India may rise further in the coming months.

CNG Prices Also Increased

Alongside petrol and diesel, CNG prices have also gone up in several metro cities. In Delhi, consumers will now have to pay ₹79.09 per kg for CNG after a ₹2 increase.

The rise in CNG prices is likely to affect auto-rickshaw drivers, cab operators and commercial transport services that heavily depend on gas-based fuel.

Fuel Prices Were Stable Since 2024

Petrol and diesel prices had remained largely unchanged since March 2024. Ahead of the Lok Sabha elections, the government had reduced fuel prices by ₹2 per litre to provide relief to consumers.

Although fuel prices in India are technically revised based on the average international crude oil prices over a 15-day period, political and economic considerations had prevented any major revision for a long time.

Oil Companies Facing Heavy Losses

According to government officials, public sector oil companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum were suffering heavy losses because of rising crude oil costs globally.

Petroleum Ministry officials estimated that oil companies were losing nearly ₹30,000 crore every month on the sale of petrol, diesel and LPG.

Experts say the current increase may still not be enough for companies to fully recover their losses.

Will Fuel Prices Rise Further?

Energy market analysts believe more hikes cannot be ruled out if geopolitical tensions continue and crude oil prices remain above $100 per barrel.

Some estimates suggest oil companies may still require additional increases to achieve break-even levels, especially if global supply disruptions worsen in the coming weeks.

PM Modi Urges Careful Fuel Usage

Prime Minister Narendra Modi recently appealed to citizens to use petrol, diesel and gas carefully amid global geopolitical uncertainty.

Speaking at an event in Telangana, the Prime Minister said India should reduce unnecessary consumption of imported fuel products to minimise economic pressure and reduce the impact of global conflicts on domestic markets.

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