State-run oil marketing companies (OMCs) on Monday raised the retail price of diesel by around ₹2.71 per litre and petrol by about ₹2.61 per litre, making it the fourth hike in the last 10 days.
After the increase, petrol costs ₹102.12 per litre in Delhi, ₹113.51 in Kolkata, ₹111.21 in Mumbai, and ₹107.77 in Chennai.
Similarly, a litre of diesel now costs ₹95.20 in Delhi, ₹99.82 in Kolkata, ₹97.83 in Mumbai, and ₹99.55 in Chennai.
This is the fourth hike in retail prices of diesel and petrol since May 15, when the prices for both auto fuels were first raised by around ₹3 per litre each. This was followed by a 90-paise increase on May 19 and May 23. Overall, the prices have now been raised by roughly ₹7.40-₹7.50 per litre for the two auto fuels.
Sujata Sharma, Joint Secretary in the Oil Ministry, said: “West Asia crisis, our imports are affected, like 40 per cent of our crude import, 90 per cent of our LPG import and almost 65 per cent of our natural gas import, but all efforts have been made to ensure the smooth supplies of petroleum products within the country.”
The government’s duty reduction has come at a high fiscal cost, even as OMCs continue to face losses. OMCs are still incurring losses (under recovery) of about ₹600 crore per day despite recent increases in fuel prices. the government forego Rs 14,000 crore as tax revenue due to the excise duty cut on petrol and diesel, she added.
Petrol and diesel prices are now at their highest levels since May 2022. Rates had remained frozen since April 2022 except for a ₹2-per-litre cut in March 2024 ahead of the Lok Sabha elections.
The fuel price increases come amid broader government efforts to contain India’s oil import bill and reduce fuel consumption.
The impact of the West Asia conflict and the resultant increase in the cost of crude oil, LPG and LNG, which has been absorbed by the PSU OMCs, severely impacted the refiners. Besides, a weak Indian rupee vis-à-vis the US dollar is further exacerbating the crisis.
Prashant Vasisht, SeniorVP & Co-Group Head of Corporate Ratings at ICRA, said: “Despite the latest hike in retail prices of auto fuels, the under recoveries of oil marketing companies remain stubbornly high due to increasing losses in domestic LPG sales, and high premium to the crude marker.”
ICRA estimates that at a crude price of $120-125 a barrel and based on the past 10-year average crack spreads for auto fuels, OMCs are incurring a daily loss of about ₹700-800 crore on the sale of auto fuels and domestic LPG, even after factoring in the fuel price hike. This high level of under recoveries is unsustainable, he emphasised.
Sources said the four OMC retail price revisions on May 15, May 19, May 23, and May 25 cumulatively added ₹7.35 per litre to petrol and ₹7.53 per litre to diesel. These are the first material upward movements in nearly four years. Besides, it is the smallest material upward movement among major economies outside the directly subsidising Gulf producers.
Through four years that included the Russia–Ukraine war and the closure of the Strait of Hormuz, the government cut central excise on petrol and diesel four times, absorbing around ₹30,000 crore of revenue in the most recent cut alone, and redeemed over ₹1.30 lakh crore of UPA-era oil bonds, principal alone, said one of the sources.
Published on May 25, 2026