Petrol, Diesel Prices Surge Across India After Four Years

Petrol, diesel and CNG prices increased across India today, marking the first major revision in retail fuel rates in over four years. The Centre has moved to shape the narrative around the price shock, asserting that Indian consumers are being protected from the full impact of surging global oil prices triggered by US-Iran tensions.

Petrol and diesel prices rose by ₹3 per litre each, while CNG prices increased by ₹2 per kg. In Delhi, petrol now costs ₹97.77 per litre, diesel stands at ₹90.67 per litre, and CNG is priced at ₹79.09 per kg. Similar increases were implemented in Mumbai, Kolkata and Chennai.

Government sources maintain that India has managed the crisis better than many nations, with 82 countries reportedly facing fuel rationing. Officials claim that oil marketing companies are absorbing losses of nearly ₹1,000 crore daily to cushion consumers. According to the government, OMCs are shouldering approximately ₹26 per litre on petrol and ₹82 per litre on diesel to keep prices below market-linked levels.

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The Centre highlighted previous tax reductions of ₹8 per litre on petrol and ₹6 per litre on diesel as evidence of efforts to moderate price impacts. Officials argue that without these interventions, fuel costs could have been significantly higher.

The price hike triggered panic buying in Rajasthan and Gujarat, with long queues forming at fuel stations. Economists warn that rising fuel costs could push up transportation and logistics charges, eventually affecting prices of essential goods.

Prime Minister Narendra Modi has appealed to citizens to reduce fuel consumption and limit unnecessary foreign travel. The government maintains that the crisis stems from external geopolitical developments rather than domestic policy failures, emphasising that India is calibrating measures to balance consumer protection with fiscal stability.