Petrol, Diesel Prices Hiked for Fourth Time in Ten Days; Latest by About ₹2.8 Per Litre
MVisualist Desk
May 25, 2026
In a significant blow to household budgets and the transportation sector, the prices of petrol and diesel have been hiked for the fourth time in less than two weeks. The latest revision on Monday, May 25, 2026, saw an aggressive increase of about ₹2.6 to ₹2.8 per litre across the country, crossing the ₹100 threshold in the national capital once again.
A Closer Look at the Price Surge
Following a prolonged freeze of nearly four years, India’s state-owned fuel retailers have embarked on a rapid series of price adjustments. The latest upward revision translates to a hike of ₹2.61 per litre for petrol and ₹2.71 per litre for diesel in Delhi.
With this latest increase, the cumulative hike over the last ten days (starting May 15) has ballooned to nearly ₹7.5 per litre across four distinct tranches.
Timeline of the Hikes:
- May 15: Prices increased by ₹3.00 per litre.
- May 19: Increase of approximately 90 paise per litre.
- May 23: Prices increased by another 87-95 paise per litre.
- May 25: Sharpest subsequent hike of ~₹2.8 per litre.
Current Fuel Prices in Metro Cities (As of May 25, 2026)
The disparity in state-level value-added tax (VAT) and freight charges means fuel rates differ considerably across metropolitan hubs. Kolkata currently records the highest petrol prices among the four major metros.
| City | Petrol Rate (₹/Litre) | Diesel Rate (₹/Litre) |
|---|---|---|
| New Delhi | ₹ 102.12 (▲ ₹2.61) | ₹ 95.20 (▲ ₹2.71) |
| Mumbai | ₹ 111.21 (▲ ₹2.72) | ₹ 97.83 (▲ ₹2.81) |
| Kolkata | ₹ 113.51 (▲ ₹2.87) | ₹ 99.82 (▲ ₹2.80) |
| Chennai | ₹ 107.77 (▲ ₹2.46) | ₹ 99.55 (▲ ₹2.57) |
Why Are Fuel Prices Skyrocketing?
Several interconnected macroeconomic factors are driving this sudden and steep surge at the pumps:
- Global Crude Oil Volatility: The ongoing conflict in West Asia, notably the US-Iran tensions, has kept global energy markets heavily disrupted. Benchmark Brent crude futures have consistently hovered above the critical $100 per barrel mark.
- Depreciating Rupee: A weaker Indian Rupee against the US Dollar directly increases the landed cost of imported crude oil. India currently imports over 80% of its crude requirements.
- Mounting OMC Losses: Oil Marketing Companies (OMCs) had kept retail fuel prices on hold for a prolonged period, reportedly absorbing losses of nearly ₹1,000 crore per day. The recent hikes are a move to recover these mounting under-recoveries, which stood at ₹13 per litre on petrol and ₹38 per litre on diesel before the latest revisions.
Impact on the Economy and Political Backlash
The ripple effect of a ₹7.5 per litre hike in under two weeks is bound to be felt across the economy. Elevated diesel prices directly translate to increased freight and logistics costs, which will likely stoke broader inflationary pressures, impacting the prices of essential commodities, fruits, and vegetables.
The hikes have also triggered immediate political reactions. Opposition leaders have heavily criticized the government. Leader of the Opposition in the Lok Sabha, Rahul Gandhi, recently took to social media, dubbing the Prime Minister as “Mehangai manav” and accusing the government of quietly picking the pockets of the common citizen “bit by bit” in installments now that the election season has concluded.
What’s Next?
Industry experts warn that unless there is an immediate resolution to geopolitical tensions in West Asia and a subsequent cooling of global crude prices, consumers shouldn’t rule out further price revisions. The government has also previously ruled out any immediate bailout package for the state-run oil companies, putting the onus of price adjustment firmly onto retail rates.
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