India on Friday increased petrol and diesel prices by around ₹3 per litre across the country as global crude oil prices surged due to escalating tensions in the Middle East, especially around Iran and the Strait of Hormuz. This is one of the biggest fuel price hikes in recent years.
Why Were Fuel Prices Increased?
The main reason behind the hike is the ongoing conflict involving Iran and disruptions in the Strait of Hormuz one of the world’s most important oil shipping routes. A large portion of global crude oil passes through this narrow sea route. Concerns over supply disruptions pushed crude oil prices sharply higher in international markets.
India imports nearly 85-89% of its crude oil requirements, making it highly vulnerable to global oil price shocks. State run oil companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum were reportedly facing heavy losses due to rising import costs.
New Petrol and Diesel Prices
After the latest revision:
- Delhi petrol price rose to around ₹97.77 per litre
- Delhi diesel price increased to around ₹90.67 per litre
- Mumbai petrol crossed ₹106 per litre
- Kolkata petrol touched nearly ₹109 per litre
- Chennai petrol crossed ₹103 per litre
Several other states also reported increases above ₹3 due to local taxes and VAT differences.
Government’s Response
Government sources said India is still “Shielding citizens” from the full impact of the global oil shock. Officials claimed oil marketing companies and the Centre have already absorbed massive financial losses to avoid even steeper price increases.
Union ministers defended the hike by saying fuel prices in some countries have risen much more sharply due to the global crisis.
Prime Minister Narendra Modi recently urged citizens and offices to reduce unnecessary fuel consumption and adopt work from home measures wherever possible to reduce energy demand.
Impact on Common People
Experts warn the fuel hike could increase:
- Transportation costs
- Food and grocery prices
- Cab and delivery charges
- Airfare and logistics expenses
- Overall inflation across sectors
CNG prices have also reportedly increased by ₹2 per kg in several cities due to the same global energy pressures.
What Happens Next?
Analysts say fuel prices may continue to remain volatile if tensions in the Middle East escalate further or if oil supply routes remain under threat. However, if global crude prices stabilize, fuel rates in India may also ease in the coming weeks.
