Petrol, Diesel and CNG Prices Hiked Again Across India; Inflation Concerns Deepen

By Thetripurapost Desk, New Delhi
May 23, 2026
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Rising fuel prices have once again hit consumers across India as petrol, diesel and CNG rates witnessed another sharp increase. The latest revision in fuel prices is expected to impact transportation, agriculture and daily household expenses, further intensifying inflation concerns nationwide.

According to the latest fuel price update, petrol in Delhi has become costlier by 87 paise and is now retailing at ₹99.51 per litre, while diesel prices have increased by 91 paise to ₹92.49 per litre.

Meanwhile, CNG prices in the Delhi-NCR region have also gone up by ₹1 per kilogram. Following the latest revision, CNG will now cost ₹81.09 per kg in Delhi. This marks the third CNG price hike within the last 10 days.

For official daily fuel price updates, readers can check Indian Oil Corporation and Petroleum Planning and Analysis Cell (PPAC)

Third Fuel Price Hike in Just Nine Days

This is the third increase in petrol and diesel prices within a span of nine days. On May 19, oil marketing companies had raised fuel prices by nearly 90 paise per litre. Earlier, on May 15, petrol and diesel rates were increased by ₹3 per litre.

The repeated hikes are now raising fears of a fresh wave of inflation across the country.

Farming Costs Set to Increase

The agriculture sector may also face additional pressure as farmers will now have to spend more on running tractors, harvesters and irrigation pumps powered by diesel. The increased operational cost may ultimately push up grain and food prices.

Bus, Auto and School Transport Fares May Increase

Public transport services including buses, auto-rickshaws and school vehicles are also likely to become more expensive due to rising fuel expenses.

Why Have Petrol and Diesel Prices Increased?

The primary reason behind the latest fuel price hike is the sharp surge in international crude oil prices.

Before the recent US-Iran geopolitical tensions, crude oil prices hovered around $70 per barrel. However, amid escalating tensions in the global energy market, crude oil prices have now crossed $100 per barrel.

Oil marketing companies have reportedly been facing mounting financial pressure due to higher import costs. As a result, companies decided to increase petrol and diesel prices to offset losses.

Experts warn that if global crude oil prices continue to remain high, fuel prices in India could rise further in the coming weeks.

Track global oil market trends at:

International Energy Agency (IEA)
How Petrol and Diesel Prices Are Calculated in India

Fuel prices in India are revised daily at 6 a.m. under the “Daily Price Revision” mechanism followed by oil marketing companies.

1. International Crude Oil Price

India imports nearly 90 percent of its crude oil requirements from abroad. Therefore, global crude oil prices directly influence domestic fuel rates.

2. Refining and Processing Charges

Crude oil is refined in domestic refineries to produce petrol and diesel. Refining expenses and company margins are added to the base cost.

3. Central Government Excise Duty

The central government imposes excise duty and road cess on fuel products after refining.

4. Dealer Commission

Petrol pump dealers receive a fixed commission on every litre of fuel sold.

5. State Government VAT

State governments impose Value Added Tax (VAT), which differs from state to state. This is why fuel prices vary in cities like Delhi, Mumbai, Kolkata and Chennai.

For detailed fuel taxation data, visit:
Petroleum Planning and Analysis Cell Data Portal
Fuel Prices Had Remained Stable Since 2024

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

Although fuel prices in India technically follow a dynamic pricing system based on international crude oil averages, rates remained stable for a long period due to economic and political considerations.

Oil Companies Reportedly Facing Massive Losses

According to government estimates, state-owned oil companies including Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum have been facing significant financial losses because of rising crude oil prices.

Petroleum Ministry official Sujata Sharma reportedly stated that oil companies are suffering losses of nearly ₹30,000 crore every month on the sale of petrol, diesel and LPG.

Earlier Excise Duty Reduction Helped Stabilise Fuel Prices

The central government had previously reduced special additional excise duty by ₹10 per litre each on petrol and diesel to stabilise retail fuel prices.

Following the reduction: