India Raises Fuel Prices for First Time in Four Years as Oil Shock Intensifies
New Delhi- India raised petrol and diesel prices by about 3 rupees per litre on Friday, marking the country’s first retail fuel price increase in four years as state-run fuel retailers moved to offset losses caused by surging global crude oil prices amid escalating Middle East tensions.
State-controlled fuel retailers said a litre of petrol in Delhi would now cost 97.77 rupees, while diesel prices rose to 90.67 rupees per litre.The increase follows a sharp rise in international crude prices after disruption to shipping through the Strait of Hormuz triggered supply concerns across global energy markets.
Oil prices surged above $120 per barrel before easing to around $100-$105 as markets assessed the impact of the U.S.-Israeli conflict involving Iran.Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation, which together operate more than 90% of India’s roughly 103,000 fuel stations, typically align retail fuel price revisions simultaneously.
India had remained among the few major economies that had not raised domestic retail fuel prices despite sustained volatility in international crude markets.
The latest adjustment is expected to increase transportation and logistics costs across sectors and could add pressure to inflation in Asia’s third-largest economy, where fuel prices have significant downstream effects on food, manufacturing and consumer expenses.
The move also reflects mounting financial strain on state-run fuel retailers, which have absorbed part of the higher import costs in recent months as geopolitical instability disrupted global oil supplies.
India imports more than 80% of its crude oil requirements, making the country particularly vulnerable to external energy shocks and disruptions in major maritime trade routes such as the Strait of Hormuz.
Indian shares were expected to open cautiously on Friday as higher crude prices and ongoing concerns over shipping risks weighed on investor sentiment.
