Fuel Costs Jump Again; Petrol & Diesel Get Costlier Across Delhi, Mumbai, Kolkata & Bengaluru

India’s state-run oil companies have triggered a second petrol and diesel price hike within a week pushing Delhi’s petrol to ₹98.64 per litre. The move follows a nearly four-year-long price freeze and growing losses from surging global crude oil rates.

Fuel Costs Jump Again: Petrol & Diesel Get Costlier Across Delhi, Mumbai, Kolkata & Bengaluru

Indians woke up on Tuesday to yet another shock at the fuel pump. State-run oil marketing companies have pushed petrol and diesel prices higher by roughly 90 paise per litre the second hike within a single week. This comes after the same companies ended a freeze that had been in place for nearly four years.

Delhi Sees Sharp Increase: Petrol Crosses ₹98

In the national capital, petrol prices climbed by 87 paise moving from ₹97.77 to ₹98.64 per litre. Diesel has gone up by 91 paise rising to ₹91.58 from ₹90.67. These are the highest fuel prices Delhi has seen since May 2022. The city had enjoyed moderate pricing for years due to lower VAT rates and its closeness to NCR oil depots.

Also Read | India Raises Petrol and Diesel Prices by ₹3

Mumbai, Kolkata, Chennai & Bengaluru: All Feel the Heat

Mumbai where fuel taxes are already steep has seen petrol jump by 91 paise to ₹107.59 per litre. Diesel there has climbed 94 paise to ₹94.08 per litre. The city’s high fuel costs are partly driven by Maharashtra’s elevated VAT structure and an extra local cess levied by the civic body.

Kolkata now holds the dubious distinction of being the costliest metro for fuel. Petrol there costs ₹109.70 per litre, while diesel is priced at ₹96.07. State taxes in West Bengal and higher logistics costs push rates up further.

Chennai has seen petrol move to ₹104.49 per litre with diesel at ₹96.11. Prices vary across states because each one levies its own value-added tax.

Meanwhile, in Bengaluru, private fuel retailer Shell continues to charge the steepest rates selling petrol at ₹119.85 per litre and diesel at ₹123.52.

Also Read | India’s Petrol-Diesel Price Hike After Four Years, Experts Warn This Could Be Just the First Move

Why Did Fuel Prices Jump So Sharply and So Quickly?

The first round of hikes a steep ₹3 per litre on May 15 broke the four-year price freeze. That increase came days after the ruling Bharatiya Janata Party secured wins in three of five state elections, including West Bengal. Opposition leaders were quick to call out the timing, saying price action was deliberately delayed to avoid electoral fallout.

Global crude prices have surged over 50 per cent since US-Israeli airstrikes hit Iran on February 28 and Iran’s retaliation disrupted flows through the Strait of Hormuz. That key chokepoint handles a major chunk of the world’s oil supply. The crisis pushed Brent crude well above $100 a barrel.

Despite this, the government had kept retail fuel prices frozen officially calling it a step to protect price-sensitive consumers. Oil marketing companies were bleeding roughly ₹30,000 crore per month in losses to absorb that burden.

Also Read | Rahul Gandhi says petrol and diesel are next after Gas prices just went up by Rs 993

Even After Two Hikes, OMCs Still Losing Money

The May 15 hike only covered about one-fifth of the actual price correction needed. On Monday, Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, confirmed that the first hike had trimmed losses by a quarter but oil firms were still losing around ₹750 crore every single day.

According to credit rating agency Crisil, losses after the May 15 increase stood at approximately ₹10 per litre on petrol and ₹13 per litre on diesel. Industry observers say Tuesday’s hike is calibrated designed to ease pressure on oil company balance sheets without triggering runaway inflation.

CNG and LPG Have Also Gotten Expensive

The fuel price spiral has not spared cooking gas or CNG users. On May 15, CNG rates went up by ₹2 per kg across Delhi and Mumbai. By Sunday, another ₹1 per kg was added. Domestic LPG cylinder prices were raised by ₹60 in March but oil companies are still losing ₹674 per 14.2-kg cylinder, meaning more hikes could come.

Private Retailers Were Ahead of the Curve

State-run companies may have delayed raising prices but private players moved far earlier. Nayara Energy, India’s largest private fuel retailer, raised petrol by ₹5 per litre and diesel by ₹3 back in March. Shell, meanwhile, raised petrol prices by ₹7.41 and diesel by a steep ₹25 per litre from April 1.

Government Urges Citizens to Cut Fuel Use

Prime Minister Narendra Modi last week called on citizens and government departments to conserve fuel recommending work-from-home arrangements, reducing unnecessary travel, and cutting office staffing. Several state governments have already begun instructing departments to hold virtual meetings and limit official travel.

Higher energy costs are straining India’s foreign exchange reserves and threatening to widen the current account deficit for a third consecutive year.

Inflation Warning Grows Louder

The fuel price hike will put additional pressure on an economy already showing signs of inflation stress. Retail inflation tracked by the Consumer Price Index climbed to 3.48 per cent in April 2026, up from 3.40 per cent in March. Wholesale price inflation has surged far more sharply hitting 8.3 per cent, a 42-month high, driven heavily by fuel and energy prices. Analysts say if global crude prices stay elevated, more fuel price revisions are likely in the weeks ahead.