Petrol, Diesel Prices Hiked by ₹3 Per Litre Amid West Asia Crisis

Fuel prices rose across India on Friday, with a ₹3 per litre increase in petrol and diesel rates, marking the first major retail revision since the outbreak of the West Asia conflict and intensifying a political row over inflation and timing.

The hike, which applies to all variants of petrol and diesel, comes amid mounting pressure on India’s energy supply chain following disruptions linked to the ongoing conflict involving Iran and the closure of key shipping routes such as the Strait of Hormuz.
In Delhi, the price of regular petrol increased to ₹97.77 per litre from ₹94.77, while diesel climbed to ₹90.67 per litre from ₹87.67. Similar increases were recorded across metro cities and states, with Jaipur seeing petrol prices rise to ₹107.97 per litre and diesel to ₹93.23.

Compressed Natural Gas (CNG) prices have also increased. In the Delhi-NCR region, rates were raised by ₹2 to ₹79.09 per kilogramme, following a similar revision earlier in Mumbai.

The increase, however, represents only a fraction of what analysts believe would be required to fully reflect the sharp surge in international crude prices. India’s crude basket, which averaged around $69 per barrel in February before the conflict escalated, has since risen to nearly $113–114 per barrel.

Despite the revision, the Centre has maintained that there is no immediate fuel shortage and ruled out any possibility of rationing. “There is no need to panic. There are sufficient supplies. There is no rationing in place. It’s not going to happen,” Oil Secretary Neeraj Mittal said recently at the CII Annual Business Summit.

Officials said India currently has fuel reserves sufficient for around 60 days, while LPG stocks are estimated to last roughly 45 days despite continuing volatility in global markets.

State-run oil companies have also moved to reassure consumers. Indian Oil Corporation Limited (IOCL) said its refineries are functioning at over 100 per cent capacity to prevent supply disruptions.

“It’s a very small rise, and you know a lot of pressure is there,” IOCL Director (Refineries) Arvind Kumar said. “I can tell you that Indian Oil Group companies’ 10 refineries are working round the clock and more than 100 per cent capacity so that there will be no crisis, no dry-out at any of our retail outlets,” he added, urging citizens to conserve fuel during what he described as a difficult period.

India, which imports nearly 90 per cent of its crude oil requirements, has remained particularly vulnerable to global energy shocks. The government had so far resisted passing higher international costs onto consumers, instead relying on state-run oil marketing companies to absorb losses and manage supplies.

However, Oil Minister Hardeep Singh Puri recently warned that maintaining unchanged retail fuel prices for a prolonged period could severely strain public sector oil firms. Addressing the CII summit earlier this week, Puri said the country’s three state-owned fuel retailers were together losing around ₹1,000 crore daily, while cumulative under-recoveries had approached nearly ₹1.98 lakh crore. He cautioned that if global crude prices remain elevated and retail prices are not adjusted, losses could touch ₹1 lakh crore in a single quarter, enough to wipe out the industry’s annual earnings.

Meanwhile, the fuel price hike has triggered sharp political criticism from the Congress, which accused the Narendra Modi government of delaying the decision until after Assembly elections concluded. Former Rajasthan Deputy Chief Minister Sachin Pilot alleged that the increase had been intentionally postponed. “It was already decided — take votes first, then raise prices,” Pilot said.
Rajasthan Congress president Govind Singh Dotasra mocked the timing of the decision, accusing the government of shifting the burden onto citizens while appealing for austerity. The price rise comes days after Prime Minister Narendra Modi urged Indians to reduce fuel consumption, avoid unnecessary travel and adopt austerity measures to help conserve foreign exchange reserves amid the worsening global energy crisis.