Petrol, Diesel Prices Hiked by ₹3 Per Litre After Nearly Two Years
- By Thetripurapost Desk, New Delhi
- May 15, 2026
- 195
Petrol and diesel prices have been increased by ₹3 per litre each across the country. Following the hike, petrol in Delhi is now priced at ₹97.77 per litre, while diesel costs ₹90.67 per litre. The revised rates came into effect from May 15. This marks the first fuel price revision in almost two years.
Other Commodities May Also Become Expensive
The increase in diesel prices is expected to affect household expenses and transportation costs significantly.
Transportation Costs to Rise
Higher diesel prices will increase truck and cargo transport charges, leading to a rise in the prices of vegetables, fruits and essential commodities transported from different states.
Agricultural Expenses Likely to Go Up
Farmers may have to spend more on operating tractors and irrigation pumps, which could ultimately raise the prices of food grains and agricultural products.
Public Transport Fares May Increase
Bus fares, auto-rickshaw charges and school transport fees are also likely to witness a hike due to the increased fuel costs.
Reason Behind the Fuel Price Hike
The surge in global crude oil prices is being cited as the primary reason for the latest increase in petrol and diesel rates. Crude oil prices, which were hovering around $70 per barrel before the US-Iran conflict, have now crossed $100 per barrel.
Oil marketing companies were reportedly under severe financial pressure due to the spike in crude oil prices and decided to increase retail fuel prices to reduce losses.
Fuel Prices Had Remained Unchanged Since 2024
Petrol and diesel prices had remained stable since March 2024. Ahead of the Lok Sabha elections in 2024, the government had reduced fuel prices by ₹2 per litre to provide relief to consumers.
Although oil companies are permitted to revise fuel prices daily based on international crude oil averages over 15 days, rates remained unchanged for a long period because of political and economic considerations.
Oil Companies Facing Heavy Losses
According to government sources, state-run companies such as Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum were suffering substantial losses due to rising global crude prices.
Sujata Sharma, Joint Secretary in the Petroleum Ministry, stated that oil companies were losing nearly ₹30,000 crore every month on the sale of petrol, diesel and LPG.
Possibility of Further Price Increase
Experts believe that the current ₹3 hike may not be sufficient to fully offset the losses of oil companies. Estimates suggest that petrol prices may need to increase by another ₹28 per litre and diesel by ₹32 per litre for companies to reach a no-profit-no-loss stage.
Analysts have warned that continued disruption in global energy supplies due to the Iran conflict could lead to additional fuel price hikes in the coming days.
Earlier Reduction in Excise Duty
Previously, the central government had reduced special excise duty by ₹10 per litre on both petrol and diesel to control fuel prices.
After the reduction:
- Excise duty on petrol came down from ₹13 to ₹3 per litre.
- Excise duty on diesel was reduced from ₹10 to zero.
As a result, the total central excise duty on petrol was reduced from ₹21.90 to ₹11.90 per litre, while diesel duty declined from ₹17.80 to ₹7.80 per litre.
The decision had helped maintain stable fuel prices despite fluctuations in the international crude oil market.