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Petrol and diesel prices were increased by nearly 90 paise per litre on Tuesday, marking the second fuel price hike in less than a week after state-run oil companies ended a nearly four-year pause on revisions.

With the latest revision, petrol prices in New Delhi climbed to Rs 98.64 per litre from Rs 97.77, while diesel rates rose to Rs 91.58 from Rs 90.67, industry sources said.

The latest increase follows a Rs 3 per litre hike announced on Friday — the first major revision in over four years — as soaring global crude oil prices triggered by the Iran conflict forced oil marketing companies to pass on part of their mounting losses. Fuel prices had remained largely unchanged during key state elections.

Fuel rates continue to vary across states because of differences in value-added tax (VAT).

Compressed natural gas (CNG) prices have also seen consecutive increases. On May 15, CNG prices were raised by Rs 2 per kg in cities such as Delhi and Mumbai, followed by another Re 1 per kg hike on Sunday.

Global crude oil prices have surged more than 50 per cent since the US-Israeli strikes on Iran on February 28 and Tehran’s retaliation, which disrupted oil flows through the strategically important Strait of Hormuz.

Despite the sharp rise in global energy prices, retail fuel rates in India had remained frozen at older levels as the government sought to shield consumers from inflationary pressure. Opposition parties, however, accused the government of delaying price hikes due to electoral considerations.

Friday’s Rs 3 per litre hike came shortly after the conclusion of state elections, in which the ruling Bharatiya Janata Party expanded its political footprint by winning three out of five states, including West Bengal.

Industry sources said the earlier Rs 3 increase covered only a fraction of the required revision needed to offset losses faced by fuel retailers.

On Monday, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said the May 15 hike had reduced losses by about 25 per cent, though oil companies were still losing nearly Rs 750 crore daily.

Following Tuesday’s increase, petrol and diesel prices have reached their highest levels since May 2022.

Fuel prices had remained unchanged since April 2022, except for a one-time Rs 2 per litre cut on both petrol and diesel in March 2024 ahead of the Lok Sabha elections.

In Mumbai, petrol now costs Rs 107.59 per litre and diesel Rs 94.08. In Kolkata, petrol is priced at Rs 109.70 and diesel at Rs 96.07, while Chennai recorded petrol prices at Rs 104.49 and diesel at Rs 96.11 per litre.

According to industry estimates, the latest hikes remain modest compared to the steep increase in crude oil prices, leaving retailers to continue absorbing significant losses. Credit rating agency CRISIL estimated that even after the May 15 hike, oil companies were losing around Rs 10 per litre on petrol and Rs 13 on diesel.

The recent price revisions come alongside government measures aimed at reducing fuel consumption and containing India’s oil import bill.

Last week, Prime Minister Narendra Modi urged citizens and institutions to conserve fuel, adopt work-from-home practices where possible, and limit unnecessary travel as rising energy costs put pressure on India’s foreign exchange reserves and current account deficit.

Several state governments have already directed departments to minimise travel, avoid physical meetings, and function with reduced staffing levels.

Private fuel retailers had previously raised prices independently. Nayara Energy increased petrol prices by Rs 5 per litre and diesel by Rs 3 in March, while Shell raised petrol prices by Rs 7.41 and diesel by Rs 25 per litre from April 1. In Bengaluru, Shell currently sells petrol at Rs 119.85 per litre and diesel at Rs 123.52.

Domestic LPG cylinder prices were also raised by Rs 60 in March, though industry sources say the rates remain below actual market costs. Oil companies are reportedly losing Rs 674 on every 14.2-kg LPG cylinder sold.

Industry experts said the latest fuel price increase appears carefully calibrated — enough to ease financial pressure on oil companies without triggering a sharp spike in inflation. However, they warned that the hikes are still likely to have some inflationary impact.

India’s retail inflation, measured by the Consumer Price Index (CPI), rose to 3.48 per cent in April 2026 from 3.40 per cent in March. Wholesale price inflation (WPI) surged to 8.3 per cent — the highest in 42 months — driven largely by rising fuel and energy costs amid elevated crude oil prices globally.