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.

The temporary tax cut will lower fuel costs by 26.3 Australian cents per litre, Albanese said, while the government will also remove the heavy road user charge.

Treasurer Jim Chalmers said the combined measures would cost about A$2.55 billion.

Global oil markets have tightened sharply after disruptions to shipments through the Strait of Hormuz, through which around one-fifth of global supply previously passed. Brent crude has risen 59% in March, reaching $115.66 per barrel at the start of trading on Monday.

Domestic fuel prices have climbed in response, with diesel exceeding A$3 per litre and petrol reaching A$2.50, according to industry data.

Energy Minister Chris Bowen said the government would use expanded powers to support fuel imports, including underwriting high-cost spot cargoes through Export Finance Australia to ensure supply continuity.

The move aims to assist smaller fuel importers that may be unable to absorb the risks of volatile prices.

Canberra said Australia currently holds fuel reserves equivalent to about 30 days of diesel and jet fuel, and 39 days of petrol, below the 90-day level recommended by the International Energy Agency.

Officials said the country remains at level two of a national fuel security framework focused on maintaining transport and supply chains, warning that prolonged conflict could intensify economic pressures.