Indian drivers face higher fuel costs after state-run fuel retailers raised petrol and diesel prices for the first time in four years by three rupees ($0.03) per litre, equivalent to more than 3%.
The increase comes as the retailers try to recoup losses incurred due to higher global crude oil prices.
India, the world's third-biggest oil importer and consumer, is one of the last major economies to raise retail fuel prices, since the start of the U.S.-Israeli war with Iran.
Global oil prices have risen sharply since the beginning of the conflict at the end February.
The spike has been driven by the effective closure of the Strait of Hormuz, a sea passage through which around 20% of the world’s petroleum and crude oil normally passes.
India’s state-run Indian Oil Corp, Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL), which together control more than 90% of the country’s 103,000 petrol stations, tend to set diesel and petrol prices in tandem.
A Bharat Petroleum Corporation Limited (BPCL) spokesperson confirmed the price increase at its retail outlets. Indian Oil. Hindustan Petroleum Corporation Limited (HPCL) didn't immediately respond to a request for comment.
Following the rise, diesel in Delhi will cost 90.67 rupees ($0.95) a litre and petrol 97.77 rupees ($1.02), reflecting increases of 3.4% and 3.2%, respectively, from 87.67 rupees ($0.91) and 94.77 rupees ($0.99) a litre.
Shares of Indian fuel retailers were down between 2.4% and 3.6% on Friday (15 May). Indian Oil Corp fell 2.4%, HPCL dropped 3.3% and BPCL was down 3.6% as of 05:50 GMT.
Madhavi Arora, Chief Economist at Mumbai-based Global Financial Services said higher fuel prices would increase Indian consumer price inflation by around 0.15%, but said the indirect impact would be greater.
"The hikes are not enough but could be the start of multiple staggered hikes," she said.
To curb fuel consumption and rein in oil import bills, New Delhi has rolled out austerity measures as policymakers brace for a prolonged energy shock.
On Sunday (10 May), Prime Minister Narendra Modi urged a spate of measures including fuel conservation, work-from-home practices, and limits on travel and imports, as surging global energy prices put pressure on the country's foreign exchange reserves.
Some states have issued notices to government departments this week to restrict travel, avoid physical events and shift meetings online, while also asking them to work from home two days a week, with offices half-staffed.
India is likely to widen the measures to cover millions of employees across the federal government, state-run banks and public sector firms, signalling a system-wide tightening of expenditure and operations as financial risks mount.
The government did not respond to a Reuters email seeking comment.
Israel and Lebanon have agreed to implement a ceasefire after U.S.-backed talks in Washington. The deal requires Hezbollah to halt attacks and withdra...
Artificial intelligence, digital innovation and youth engagement in environmental governance took centre stage at Eco Expo Central Asia 2026 in Samark...
Disruptions to global energy routes have transformed energy security from an economic concern into a matter of national security, Turkish President Re...
A series of signals from Washington, including congressional testimony, a U.S. Embassy statement and a senior diplomat's visit to Tbilisi, has given G...
Afghan and Uzbek business officials have discussed ways to expand trade, ease transit bottlenecks and address customs challenges facing traders, accor...
Israel and Lebanon have agreed to implement a ceasefire after U.S.-backed talks in Washington. The deal requires Hezbollah to halt attacks and withdraw from southern Lebanon, while both sides will resume direct talks later this month aimed at reaching a broader agreement.
A series of signals from Washington, including congressional testimony, a U.S. Embassy statement and a senior diplomat's visit to Tbilisi, has given Georgia's ruling party reason to declare a diplomatic reset. But Washington's message is more nuanced than Tbilisi is suggesting.
Afghan and Uzbek business officials have discussed ways to expand trade, ease transit bottlenecks and address customs challenges facing traders, according to the Afghanistan Chamber of Commerce and Investment (ACCI).
Armenia is set to receive a support package worth more than €50 million ($58.2 million) from the European Union (EU) after Russia, its largest trading partner, imposed restrictions on a range of Armenian exports.
Severe Tropical Storm Jangmi brought heavy rain, power cuts and transport disruption across Japan on Wednesday (3 June) as it tracked towards the greater Tokyo region.
Police officers were pelted with missiles during violent clashes at a protest near the Southampton, UK, home of convicted murderer Vickrum Digwa, as anger continued to grow over the handling of the fatal stabbing of 18-year-old Henry Nowak.
Thousands of people have taken to the streets in Albania in recent days to protest against a luxury tourism project linked to Jared Kushner, the son-in-law of U.S. President Donald Trump, and his wife Ivanka Trump.
An Iranian drone and missile attack struck Kuwait International Airport early Wednesday, injuring several people, damaging Terminal 1 and forcing flight diversions, Kuwaiti authorities said.
Armenia’s parliamentary election comes at a defining moment for the South Caucasus, a region reshaped by the Garabagh conflict and broader shifts in Russia-West relations. The outcome is increasingly seen as a signal of Armenia’s future foreign policy direction and the regional balance of power.
Armenia will hold parliamentary elections on 7 June 2026, a vote that will shape the country’s political direction for the next five years. Understanding how the electoral system converts votes into parliamentary power is key to following the outcome and its wider regional implications.
Disruptions to global energy routes have transformed energy security from an economic concern into a matter of national security, Turkish President Recep Tayyip Erdoğan said on Wednesday.
Artificial intelligence, digital innovation and youth engagement in environmental governance took centre stage at Eco Expo Central Asia 2026 in Samarkand, as experts and young leaders explored new approaches to climate resilience and sustainability.
A series of signals from Washington, including congressional testimony, a U.S. Embassy statement and a senior diplomat's visit to Tbilisi, has given Georgia's ruling party reason to declare a diplomatic reset. But Washington's message is more nuanced than Tbilisi is suggesting.
Afghan and Uzbek business officials have discussed ways to expand trade, ease transit bottlenecks and address customs challenges facing traders, according to the Afghanistan Chamber of Commerce and Investment (ACCI).
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment