India Raises Petrol, Diesel Prices After 4 Years as Middle East War Disrupts Oil Supplies

India has increased:

• petrol and diesel prices by ₹3 per litre

marking:

• the first retail fuel price hike in four years.

The increase comes as:

• global crude oil prices surged
• shipping disruptions intensified in the Strait of Hormuz
• the US-Israel-Iran conflict strained global energy supplies.

New Fuel Prices

In Delhi:

• Petrol now costs ₹97.77 per litre
• Diesel now costs ₹90.67 per litre

State-run fuel retailers involved include:

• Indian Oil Corporation
• Bharat Petroleum
• Hindustan Petroleum

These companies control:

• more than 90% of India’s fuel stations.

Why Prices Increased

Global crude oil prices recently crossed:

• $120 per barrel

before stabilising around:

• $100–105 per barrel.

India, which imports most of its crude oil needs, has faced:

• rising import costs
• foreign exchange pressure
• higher fuel subsidy losses

due to the ongoing Middle East crisis.

Officials said the price hike is aimed at:

• recovering losses suffered by fuel retailers.

Fuel Conservation Measures

Prime Minister:

• Narendra Modi

has urged citizens to:

• reduce fuel consumption
• work from home where possible
• avoid unnecessary travel
• limit imports
• shift meetings online

Several Indian states have already:

• reduced physical office attendance
• restricted government travel
• encouraged remote work

to control fuel usage and public expenditure.

Economic Impact

Analysts believe:

• direct inflation impact may remain limited initially

but warned:

• transport costs
• logistics expenses
• consumer spending pressure

could increase over time.

Research agency:

• ICRA

has lowered its forecast for:

• petrol demand growth
• diesel demand growth

because higher prices and fuel-saving measures are expected to reduce consumption.

What Analysts Say

Experts noted that:

• the ₹3 hike may not fully offset oil company losses

and further gradual increases could follow if:

• crude prices remain elevated
• geopolitical tensions continue.

The report also noted that:

• India delayed raising retail fuel prices during recent state elections

before implementing the increase afterward.