Full Breakdown
India’s Fourth Fuel Price Hike in Ten Days
5/25/2026, 8:12:10 AM
Fourth Fuel Price Hike in Ten Days
On May 25 2026, India’s oil-marketing companies—Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum—raised petrol by INR2.61 per litre and diesel by INR2.71 per litre. This fourth increase in ten days is the first hike of over INR1 per litre since May 15.
Geopolitical Context
The hikes follow a freeze that ended on May 15 with a INR3 per litre increase, then 90-paise hikes on May 19 and 87-/91-paise hikes on May 23. Crude prices surged after Iran-U.S. conflict and Strait of Hormuz disruptions; India’s crude basket averaged $107.96 per barrel through May 22, while Brent fell to $98.59 per barrel on peace-deal hopes.
Price Changes and Cumulative Impact
City-wise rates after the May 25 revision are: Delhi – petrol INR102.12 (+INR2.61), diesel INR95.20 (+INR2.71); Mumbai – petrol INR111.21 (+INR2.72), diesel INR97.83 (+INR2.81); Kolkata – petrol INR113.51 (+INR2.87), diesel INR99.82 (+INR2.80); Chennai – petrol INR107.77 (+INR2.46), diesel INR99.55 (+INR2.57). Prices have risen about INR7.5 per litre since May 15, and OMCs control roughly 90 % of the market.
Official Statements
The Ministry of Petroleum and Natural Gas said India has sufficient fuel stocks and urged citizens to avoid panic buying. ONGC Director Sushma Rawat noted OMCs were absorbing a hit of almost Rs 1,000 crore after shielding consumers. Former BPCL marketing director Sukhmal Kumar Jain warned oil firms face under-recoveries, with crude prices rising to $110-115 per barrel. Bank of Baroda chief economist Madan Sabnavis called the rise inevitable given losses. Grant Thornton Bharat partner Sourav Mitra said hikes provide some relief but not a full cushion; further revisions may follow.
Opposition
Opposition parties claim the government delayed price revisions until after the BJP won three of five state/UT elections, including West Bengal. Nayara Energy and Shell had already raised rates, underscoring market pressure. Critics warn repeated hikes may fuel inflation and strain transport operators.
Conflicts
Sources differ on OMC loss estimates: some cite daily hits of almost Rs 1,000 crore, others quote per-litre losses of INR13 for petrol and INR38 for diesel. No official timetable is given, though analysts project hikes up to INR10 per litre.
Verbatim Quotes
- "OMCs are still incurring a loss of INR38 per litre on diesel and INR13 per litre on petrol." — Sources, CNBC-TV18
- "Diesel is currently being sold at a loss of Rs 25-30 per litre, while petrol losses are estimated at Rs 10-14 per litre." — Officials, Daily Pioneer
- "Petrol and diesel prices could rise by as much as INR10 per litre in the near term." — Emkay Global, Analyst
- "More price hikes could follow, as the current increase may not fully compensate OMCs for their losses." — Madan Sabnavis, Chief Economist, Bank of Baroda
Outlook
Bank of Baroda’s Sabnavis and Emkay Global expect further hikes if crude stays above $90 per barrel and the rupee stays weak. OMCs may seek additional revisions, and the government will monitor inflation and fuel-stock adequacy.
