Noida, May 25 (APAC Media): Petrol and diesel prices were hiked for the fourth time since the outbreak of the Iran conflict, as rising global crude oil prices continued to put pressure on domestic fuel retailers.
State-owned oil marketing companies on Monday increased petrol prices by Rs 2.61 per litre and diesel prices by Rs 2.71 per litre across major cities, taking cumulative fuel price hikes to more than Rs 7 per litre over the past two weeks.
The latest revision comes amid escalating tensions in the Middle East, which have raised concerns over crude oil supplies through the Strait of Hormuz, a critical global energy transit route.
Latest Fuel Prices in Four Metros (25.05.2026)
| City | Petrol Price (₹/L) | Increase | Diesel Price (₹/L) | Increase |
|---|---|---|---|---|
| Delhi | 102.12 | +2.61 | 95.20 | +2.71 |
| Kolkata | 113.51 | +2.87 | 99.82 | +2.80 |
| Mumbai | 111.21 | +2.72 | 97.83 | +2.81 |
| Chennai | 107.77 | +2.46 | 99.55 | +2.57 |
“Global crude prices remain highly volatile due to geopolitical uncertainty in the Gulf region, and that is directly impacting fuel pricing in import-dependent countries like India,” an energy sector analyst said.
“Despite the latest hike in retail prices of auto fuels, oil marketing companies’ under-recoveries remain stubbornly high due to increasing losses in domestic LPG sales and a high premium to the crude marker. ICRA estimates that at a crude price of $120-125/barrel and considering the past 10-year average crack spreads of auto fuels, oil marketing companies are incurring a loss of about Rs 700-800 crore daily 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,” said Prashant Vasisht, Senior Vice President and Co-Group Head, Corporate Ratings, ICRA Ltd.
Following the hike, petrol prices in Delhi crossed the Rs 100-per-litre mark, while diesel rates in Mumbai moved close to Rs 100 per litre, according to retail fuel data.
“Does anyone in the world not understand why petrol and diesel prices are rising? Even in such a major global crisis, the government has managed to keep the increase under control so that the rise remains very small. Given the scale of the global situation, it is not just India where petroleum product prices are increasing,” said Bihar Deputy Chief Minister Vijay Kumar Chaudhary.
Market experts warned that sustained increases in fuel prices could trigger broader inflationary pressures by raising transportation and logistics costs.
“Higher fuel costs are expected to affect supply chains and eventually push up prices of essential goods and services,” a senior commodities analyst expressed.
Opposition parties criticised the repeated increase in fuel prices, questioning the timing of the hikes despite earlier profit growth reported by public sector oil companies.
Meanwhile, investors and policymakers are closely tracking developments in the Middle East, with analysts cautioning that any further escalation in the Iran conflict could lead to additional pressure on global oil markets and domestic fuel prices.
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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