Indian consumers have absorbed two fuel price hikes within the span of a single week. Oil companies revised retail rates upward on Monday for the second time in days, with petrol in New Delhi climbing by 87 paise to Rs 98.64 per litre and diesel rising by 91 paise to Rs 91.58.

The move follows a nationwide Rs 3-per-litre hike announced just last Friday, and with crude oil trading above USD 111 a barrel and geopolitical pressure building, there is little indication that the worst is behind us.

City-by-city impact

Kolkata recorded the sharpest jump among the metros, with petrol rising by 96 paise to Rs 109.70 per litre and diesel climbing 94 paise to Rs 96.07. In Chennai, petrol is now Rs 104.49 per litre after an 82-paise increase, with diesel up 86 paise to Rs 96.11. Every major metro recorded noticeable increases in both petrol and diesel in Monday's revision.

To put the cumulative picture in context: in Delhi alone, petrol has risen from Rs 94.77 to Rs 98.64 per litre over the past week. Diesel has gone from Rs 87.67 to Rs 91.58 over the same period. Friday's revision had also pushed CNG prices in Delhi up by Rs 2 per kg, with the retail rate rising from Rs 85 to Rs 87.

What is driving the hikes

Two converging pressures are behind the sustained upward movement in domestic fuel prices.

The first is crude. International oil prices have surged sharply amid the ongoing conflict in West Asia, with Brent Crude trading above USD 111 per barrel and WTI crossing USD 107 on Monday. With India importing nearly 85% of its crude oil requirements, domestic prices are acutely sensitive to global market shifts. Concerns over potential disruption to the Strait of Hormuz, a critical artery for global oil shipments, have compounded fears of supply constraints.

The second pressure point is the erosion of India's Russian oil cushion. Over the past two years, India has relied heavily on discounted Russian crude to keep import costs in check. That buffer has come under significant pressure following the lapse of a US sanctions waiver that had allowed continued trade in Russian seaborne oil. The waiver expired on Saturday after a temporary extension by the Trump administration, and with it, a key tool India had been using to manage fuel costs at a time of elevated global prices.

Why does this matter beyond the fuel station

The implications of sustained fuel price increases extend well beyond what consumers pay at the pump. Higher petrol and diesel costs feed directly into transport fares, airline tickets, food prices, logistics expenses, and household budgets — adding to broader inflationary pressure across the economy.

If Indian refiners pull back from discounted Russian crude due to sanctions concerns, they will need to source oil from alternative suppliers at a time when global supply is already under strain. That shift could raise India's import bill further, put pressure on the rupee, and accelerate inflation more broadly.

Published on: May 19, 2026 7:14 AM IST