India Raises Fuel Prices Amid Iran War and End of Russian Oil Waiver
India has increased petrol and diesel prices by ₹3 per liter, the first hike in four years, driven by soaring crude costs from the Iran war and disrupted Strait of Hormuz supplies. The situation is exacerbated by the US ending sanctions waivers on Russian oil, a key alternative source for India. With global prices exceeding $100 per barrel and refiners facing massive losses, further price increases are expected. The government is implementing austerity measures to manage inflation and conserve foreign exchange amidst this severe energy supply crisis.
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Domestic LPG Price Hiked by ₹29 per Cylinder in India
India's state-owned fuel retailers raised the price of a 14.2-kg domestic LPG cylinder by ₹29, effective June 7, 2026, bringing the price in Delhi to ₹942 from ₹913. This marks the second increase in three months, following a ₹60-per-cylinder hike on March 7, which was attributed to the conflict in West Asia disrupting global energy supplies and driving up international fuel prices. Industry sources stated that the increase only partially offset losses, with oil companies still losing about ₹703 per cylinder before the revision. The hike is part of a broader round of fuel price increases, including petrol and diesel (cumulative ₹7.50 per litre since mid-May) and CNG (₹6 per kg). Despite these increases, oil companies continue to sell petrol and diesel below cost, incurring losses of ₹11 per litre on petrol and ₹33.6 per litre on diesel, as the government avoids fully passing on higher international energy prices to consumers.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Fuel prices rise ₹7.5 per litre in 10 days; petrol crosses ₹100 in Delhi
India has seen a sharp increase in fuel prices, with petrol and diesel rising by approximately ₹7.5 per litre over ten days following four consecutive hikes. The latest increase on May 25, 2026, pushed petrol prices in Delhi above the ₹100 mark for the first time in four years. Prices vary by city, with Kolkata recording the highest petrol price at ₹113.51 and Mumbai the highest diesel at ₹97.83. Union Finance Minister Nirmala Sitharaman stated that the government will incur a revenue loss of over ₹1 lakh crore in 2026 due to a previous ₹10 per litre excise duty cut. The Petroleum Ministry reported that oil marketing companies (OMCs) are now losing slightly less than ₹600 crore per day from fuel sales, down from ₹750 crore after the first hike. The price increases follow a three-month period where OMCs absorbed high crude oil costs amid the West Asia conflict. Benchmark Brent crude futures fell 6.1% to $97.23 per barrel amid reports of a potential Iran-U.S. peace deal.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Petrol and diesel price hike an adjustment to global crude surge, says Minister Nadendla Manohar
On May 25, 2026, India's Civil Supplies Minister Nadendla Manohar stated that the latest increase in petrol and diesel prices—the fourth in ten days, totaling about ₹7.5 per litre—is a necessary adjustment due to a sharp surge in global crude oil prices. The surge is attributed to geopolitical tensions in West Asia, particularly the Iran War and concerns over the Strait of Hormuz. The minister noted that public sector oil marketing companies had absorbed significant under-recoveries for a long time before implementing these modest, phased hikes. The most recent hike was the steepest at ₹2.7-2.8 per litre. Meanwhile, Brent crude futures fell about 4.8% to $98.59 a barrel amid signs of a potential peace deal between Iran and the U.S., though India's crude oil basket averaged $107.96 a barrel earlier in May.
News Today: Breaking News, Top Headlines & Live Updates | The HinduIndia Raises Petrol and Diesel Prices by Up to ₹2.71, Cumulative Hike Tops ₹7.5 in Two Weeks
State-owned Indian fuel retailers raised petrol and diesel prices by ₹2.61-2.71 per litre on Monday, the fourth increase in less than two weeks, bringing cumulative hikes to nearly ₹7.5 per litre since May 15. The increases follow a prolonged freeze and are driven by surging global crude oil prices, tighter refining margins, and a weaker rupee. Petrol in Delhi now costs ₹102.12 per litre and diesel ₹95.20. Prices vary across states due to local taxes. The back-to-back hikes come after global crude oil prices rose over 50% since late February, attributed to US-Israeli strikes on Iran and disruptions to shipments through the Strait of Hormuz. The government had kept pump prices low during the first months of the conflict to shield consumers, but resumed increases after state elections. Private retailers like Nayara Energy and Shell have matched or preceded the hikes. Petrol and diesel prices are now at their highest levels since May 2022.
Home PageIndia's Petrol and Diesel Prices Rise for Fourth Time in Two Weeks
India's state-run Oil Marketing Companies (OMCs) raised petrol prices by Rs 2.61 per litre and diesel by Rs 2.71 per litre on May 25, 2026, marking the fourth hike since fuel rate revisions resumed on May 15. Cumulative increases now total nearly Rs 7.5 per litre. In Delhi, petrol reached Rs 102.12 per litre and diesel Rs 95.20. The hikes are attributed to elevated global crude oil prices, a weakening rupee, and prolonged geopolitical tensions in West Asia, including disruptions in the Strait of Hormuz. ONGC and BPCL executives noted that OMCs were incurring daily losses of nearly Rs 1,000 crore, forcing the government to end a 76-day price freeze. India, which imports 85% of its crude oil, faces amplified economic pressure. Global oil prices briefly fell over 5% on hopes of a US-Iran peace deal, but uncertainty persists.
Economic TimesUS Waiver on Russian Oil Ends: India Faces Potential Fuel Price Hikes Amid Global Supply Crisis
The Trump administration has allowed a sanctions waiver on Russian seaborne crude to expire, significantly altering India's energy landscape. This decision coincides with heightened tensions in the Strait of Hormuz due to the Iran war, causing global crude prices to surge above $105 per barrel. India, which had relied heavily on discounted Russian oil to mitigate inflation, now faces a dual challenge: unstable Middle East supplies and renewed sanctions risks on Russian imports. Data indicates India's Russian oil imports reached a record 2.3 million barrels per day in May. With over 85% of its crude needs imported, India is vulnerable to rising costs that could drive up inflation, affect government finances, and increase consumer fuel prices. The government must balance fiscal constraints, potential subsidies, and political pressures while navigating geopolitical risks from both Washington and the Gulf region. Policy makers are considering options ranging from tax cuts to reviving fuel-saving measures, as the country seeks to secure affordable energy without triggering severe economic or diplomatic consequences.
NDTV News Search Records Found 1000Trump Ends Russian Oil Waiver Amid Hormuz Crisis, Sparking Global Price Surge Fears
Amid the ongoing Hormuz crisis, global oil prices are projected to rise following US President Trump's decision to let the waiver for Russian crude oil sanctions expire. This move terminates a temporary exemption granted in March 2026 to stabilize markets during the Middle East conflict, a decision influenced by European opposition to funding Russia's war efforts. The expiration poses a significant challenge to India, which relies heavily on Russian oil, with approximately 50% of its imports coming from Russia in March 2026. As Middle East supplies dropped by 61%, India had increased Russian purchases to maintain energy security. Experts warn that this supply shock, combined with existing tensions, will likely drive up petrol and diesel prices worldwide, exacerbating inflation risks. India recently raised fuel prices by ₹3 per liter, and further hikes are anticipated if crude costs remain elevated. The situation highlights the fragile state of global energy markets as geopolitical conflicts in both Ukraine and the Middle East converge to disrupt supply chains.
India Today | Latest StoriesIndia Raises Fuel Prices for First Time in Four Years Amid Supply Crisis
Indian state refiners have increased retail prices for gasoline and diesel by approximately $0.031 per liter, marking the first fuel price hike in the country in four years. This decision, representing an increase of over 3%, was driven by a surge in global crude oil prices and tighter availability following a conflict in the Middle East that disrupted over 40% of India’s crude flows through the Strait of Hormuz. The disruption has caused significant financial strain, with wholesale inflation jumping to 8.3% in April and the local currency hitting record lows against the US dollar. To mitigate the supply shortage, India has significantly increased its reliance on Russian crude, with imports reaching an all-time high of 2.3 million barrels per day. Consequently, New Delhi has requested the United States to extend sanctions waivers on Russian oil, as existing waivers are set to expire amidst ongoing geopolitical stalemates. The government had previously delayed price adjustments due to consumer sensitivity, but mounting losses for refiners necessitated this move.
ZeroHedge NewsIndia Raises Petrol and Diesel Prices by ₹3/Litre After Four-Year Freeze
State-run oil companies in India have increased petrol and diesel prices by ₹3 per litre, marking the first hike in four years. This decision comes two-and-a-half months after the onset of the Iran war, which caused global crude prices to surge significantly. While the increase aims to partially offset mounting losses for fuel retailers, industry executives argue it is insufficient, having originally requested a hike of over ₹10 per litre. The government opted for a calibrated increase to mitigate inflationary pressures and avoid political backlash, especially as wholesale inflation recently hit a 48-month high. The under-recovery gap remains substantial, with oil marketing companies reporting combined monthly losses of ₹30,000 crore. Additionally, CNG prices in major cities like Delhi and Mumbai have risen by approximately ₹2 per kg. Analysts expect further incremental hikes in the coming weeks to bridge the gap between rising procurement costs and retail prices, driven by higher crude averages and rupee depreciation against the dollar.
Economic TimesIndia Raises Fuel Prices Amid Iran War Supply Disruptions
India has increased petrol and diesel prices as state-owned oil companies respond to severe energy supply disruptions caused by the ongoing war with Iran. In Delhi, petrol prices climbed to 97.77 rupees per liter, while diesel reached 90.67 rupees, marking the first hike since the conflict escalated. The price increases follow earlier hikes in liquefied petroleum gas (LPG) costs. As the world's third-largest oil buyer, India faces significant challenges because approximately half of its crude imports transit through the Strait of Hormuz, which has been closed due to the war that started in February. To mitigate the economic impact, Indian authorities are implementing austerity measures aimed at reducing fuel consumption and preserving foreign exchange reserves. Additionally, the Chief Minister of Delhi announced new protocols for public administrations, including two days of mandatory teleworking per week for eligible employees, and urged residents to minimize private vehicle usage. These measures highlight the growing pressure on India's economy and the government's attempt to manage resource scarcity and financial stability amidst the geopolitical crisis.
Le SoirIndia Faces Further Fuel Price Hikes Amid Iran War and Rising Oil Costs
Indian consumers are bracing for additional fuel price increases as the government responds to the economic impact of a prolonged conflict in the Persian Gulf involving Iran. State-owned refiners have implemented a modest initial hike of 3 rupees per liter for diesel and gasoline, marking the first increase in four years. However, this adjustment is insufficient to offset global crude oil prices exceeding $100 per barrel, leading to significant losses for refiners. Sources indicate that further hikes of 2-4 rupees per liter are imminent if crude prices remain elevated, with refiners ultimately requiring a 15-20 rupee increase to cope with the crisis. The government aims to spread these adjustments over time to mitigate the burden on households while encouraging fuel conservation. Analysts suggest that more price rises are inevitable unless the geopolitical situation eases. This development highlights the strain on India's energy sector and household budgets due to external conflicts affecting global oil supply chains.
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