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Informist, Friday, May 15, 2026

--IOC hikes retail petrol, diesel prices by INR 3 in Delhi 

--IOC hikes retail petrol price to INR 97.77/ltr from INR 94.77/ltr in Delhi 

--IOC hikes diesel price to INR 90.67/ltr from INR 87.67/ltr in Delhi 

MUMBAI – Indian Oil Corp. Ltd. has hiked prices of petrol and diesel by INR 3 per litre in New Delhi. This price hike comes amid the energy crisis that India is facing due to the West Asia war, which was even acknowledged by Prime Minister Narendra Modi. The price of retail petrol saw a hike of INR 3 per litre taking it to INR 97.77 per litre from INR 94.77 per litre. Diesel is now INR 90.67 per litre from INR 87.67 per litre earlier, as per the data from IOC. Prices of the two fuels vary across the country depending on state levies.

The two other public sector fuel retailers, Bharat Petroleum Corp. Ltd. and Hindustan Petroleum Corp. Ltd., follow IOC in price revisions.

The country was expecting a hike in petrol and diesel prices as the war in West Asia between the US and Iran pushed crude oil prices higher. At the onset of the war, Iran targeted ships passing through the strategically vital Strait of Hormuz, leading to the closure of the waterway – through which 20% of global crude oil passes through. The closure of the Strait of Hormuz pushed crude oil to a nearly four-year high of $126.41 per barrel.

Prime Minister Narendra Modi on Sunday urged the people to cut down on the usage of petrol and diesel as India was in a tough spot due to the energy crisis.  More

The last time India saw a retail price hike on petrol and diesel was in April 2022, where a similar war situation took the crude oil prices to record highs. The government made a cumulative increase of INR 9.20 per litre for diesel and petrol in just over two weeks due to the Russia-Ukraine conflict which led crude oil prices to record highs during the period. 

In April 2022, the prices reached INR 104.61 per litre for petrol and INR 95.87 per litre for diesel in New Delhi. As of Thursday, the petrol price in New Delhi was INR 94.77 per litre, while the diesel price was INR 87.67 per litre.  

Oil sector analysts had earlier expected a price hike on petrol and diesel once the nation gets off the heat of assembly elections. Assembly elections were held in Kerala, Tamil Nadu, Assam, West Bengal and Puducherry in April and results announced on May. 4.

India's crude basket rose $47 per barrel in March and $53 per barrel in the first half of April. Despite a 13-15% decline in imports, India's crude import bill has increased by $190-$210 million per day, Kotak Securities said in a report dated Apr. 20. "Elevated oil prices warrant commensurate retail fuel price increases to contain refiners' losses and signal demand moderation," Kotak said. But the price hike did not come in when it was needed the most. Moreover, domestic liquefied petroleum gas and airline turbine fuel rates hikes were modest, the brokerage added.

"We believe after state elections, and if there is no truce in West Asia, the retail prices will be hiked," Kotak said. The brokerage estimated a retail fuel price hike of INR 25–INR 28 per litre. However, political considerations will likely prevail and actual hikes may be more modest, Kotak added.

Emkay Global Financial Services Ltd. has estimated a 10% price hike in retail petrol and diesel prices. The brokerage was of the view that the closure of the strategically vital Strait of Hormuz has sustained pressure on the Indian economy, where a price hike is likely. A price hike of INR 10 per litre in the first round is expected, while this does not fully neutralise the under-recoveries of oil marketing companies, Emkay said. The inflation shock from a larger hike poses too many macro risks to be seriously considered, the brokerage added. "If crude prices do not normalize in the medium term, we expect further rounds of hikes along similar lines," Emkay said in a report in April.  End

US$1 = INR 95.7625

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Adhithya Aji

Edited by Akul Nishant Akhoury

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