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.
Regional powers gathered in Moscow on Monday for talks on Afghanistan, focusing on security, economic cooperation and Kabul’s relations with ...
Iranian Foreign Minister Abbas Araghchi and his Armenian counterpart Ararat Mirzoyan held talks in Tehran on Monday on bilateral ties and efforts t...
Four major German political foundations have halted their work in Georgia as tighter rules on foreign grants put pressure on a decades-old partners...
Iran's Oil Minister Mohsen Paknejad has resigned, with Hamid Bovard, chief executive of the state-owned National Iranian Oil Company (NIOC), appointed as acting oil minister, according to Iranian state media.
Right-wing Brazilian Senator Flavio Bolsonaro will face leftist President Luiz Inacio Lula da Silva in a runoff of the presidential election later this month, after he exceeded expectations in Sunday's first-round vote with a slight lead over the incumbent.
Candidates elected to Bosnia and Herzegovina's three-member presidency declared victory after preliminary unofficial results showed Denis Becirovic leading the Bosniak seat, Darijana Filipovic ahead in the Croat seat and Zeljka Cvijanovic likely retaining the Serb seat.
Uzbekistan’s grape exports have grown rapidly. In January-August 2025, the country exported 86,200 tonnes of fresh grapes worth $78.3 million to 19 countries but can it turn these crops into a recognisable international product?
Iran says the Strait of Hormuz will remain closed until the United States meets seven conditions agreed under a June memorandum, as President Donald Trump signals he may soon decide whether to resume military operations against Tehran.
Regional powers gathered in Moscow on Monday for talks on Afghanistan, focusing on security, economic cooperation and Kabul’s relations with its neighbours.
Four major German political foundations have halted their work in Georgia as tighter rules on foreign grants put pressure on a decades-old partnership and add to tensions between Tbilisi and its European partners.
The U.S. has deployed two additional Patriot missile batteries to the Gulf, protecting key energy facilities in Saudi Arabia and Qatar as Washington expands its military presence in the Middle East amid heightened tensions with Iran.
Iranian Foreign Minister Abbas Araghchi and his Armenian counterpart Ararat Mirzoyan held talks in Tehran on Monday on bilateral ties and efforts to strengthen peace and security in the South Caucasus.
Iran’s Foreign Ministry says it has conveyed its initial position to the United States through Qatar over Washington’s response to Tehran’s seven-day plan aimed at ending the war and reopening the Strait of Hormuz.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment