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Sun, 24 May 2026
03:04:01 am
Sun, 24 May 2026
03:04:01 am
Synopsis
Petrol and diesel prices in India surged nearly ₹5 per litre within 10 days after multiple hikes by Oil Marketing Companies. Rising global crude oil prices, Strait of Hormuz tensions, and high state VAT rates pushed fuel prices above ₹113 per litre in several states, while consumers across India continue facing growing fuel inflation pressure.
Fuel prices in India have witnessed a sharp upward rally over the last 10 days, with state-owned Oil Marketing Companies (OMCs) implementing three separate fuel price hikes on May 15, May 19, and May 23, 2026. As a result, petrol and diesel prices across several Indian states have surged by nearly ₹5 per litre within less than two weeks.
The latest fuel price increase has pushed petrol prices above ₹113 per litre in several states, while diesel prices have crossed the ₹101 per litre mark in some regions. The sharp rise comes amid escalating global crude oil tensions, higher freight costs, and increasing pressure on public sector oil companies to recover mounting under-recoveries.
The biggest driver behind the sharp variation in fuel prices across India remains the state-wise VAT structure, local cesses, and transportation charges imposed by different state governments.
The recent fuel price surge is primarily linked to rising international crude oil prices and geopolitical tensions impacting global energy supply chains.
India imports a large portion of its crude oil requirements, making domestic fuel prices highly sensitive to global market movements.
| Factor | Impact on Fuel Prices |
|---|---|
| Rising Global Crude Oil Prices | Increased import costs |
| Strait of Hormuz Shipping Tensions | Higher freight and insurance expenses |
| OMC Under-Recoveries | Pressure to raise retail fuel prices |
| State VAT and Local Taxes | Significant price variation across states |
| Logistics and Transportation Costs | Higher retail prices in remote regions |
Global crude oil prices have reportedly moved into the $104–$114 per barrel range, significantly increasing fuel procurement costs for Indian oil marketing companies.
Several states continue to witness extremely high fuel prices because of aggressive state taxation structures.
| State / UT | Petrol Price (Per Litre) | Diesel Price (Per Litre) |
|---|---|---|
| Andhra Pradesh | ₹113.44 | ₹101.16 |
| Telangana | ₹113.21 | ₹101.35 |
| Madhya Pradesh | ₹112.23 | ₹97.90 |
| Bihar | ₹111.23 | ₹95.90 |
| West Bengal | ₹110.89 | ₹97.21 |
| Kerala | ₹110.31 | ₹99.35 |
| Rajasthan | ₹108.51 | ₹93.78 |
| Maharashtra | ₹108.44 | ₹95.02 |
| Karnataka | ₹107.47 | ₹95.04 |
| Tamil Nadu | ₹105.71 | ₹97.37 |
| Delhi | ₹98.64 | ₹91.58 |
| Uttar Pradesh | ₹98.33 | ₹91.64 |
| Gujarat | ₹98.16 | ₹94.00 |
| Chandigarh | ₹98.10 | ₹85.25 |
| Andaman & Nicobar | ₹84.99 | ₹80.64 |
Andhra Pradesh and Telangana currently have the highest petrol prices in India due to elevated VAT rates and local cesses.
| State | Petrol Price |
|---|---|
| Andhra Pradesh | ₹113.44 |
| Telangana | ₹113.21 |
| Madhya Pradesh | ₹112.23 |
| Bihar | ₹111.23 |
| West Bengal | ₹110.89 |
Union Territories and states with lower VAT structures continue to offer relatively cheaper fuel prices.
| State / UT | Petrol Price |
|---|---|
| Andaman & Nicobar | ₹84.99 |
| Arunachal Pradesh | ₹96.37 |
| Daman & Diu | ₹96.10 |
| Dadra & Nagar Haveli | ₹96.29 |
| Himachal Pradesh | ₹97.29 |
Metro cities and major urban regions continue witnessing strong fuel price pressure following the latest hikes.
| City | Petrol Price |
|---|---|
| Hyderabad | ₹111.84 |
| Kolkata | ₹110.64 |
| Mumbai | ₹108.49 |
| Bengaluru | ₹107.14 |
| Chennai | ₹104.51 |
| Delhi | ₹99.51 |
| Noida | ₹98.78 |
| Gurugram | ₹100.38 |
Fuel prices vary significantly across India because each state government imposes its own VAT rates and local taxes.
| Component | Estimated Cost |
|---|---|
| Crude Oil + Refining Cost | ₹45.50 |
| OMC Margin & Freight | ₹5.50 |
| Central Excise Duty | ₹19.90 |
| Dealer Commission | ₹4.10 |
| State VAT & Local Taxes | ₹23 – ₹38 |
| Final Retail Price | ₹98 – ₹113 |
States with higher VAT rates naturally witness higher retail fuel prices.
While the Central Government imposes a uniform excise duty nationwide, states apply varying tax structures.
| State | Key Tax Structure |
|---|---|
| Telangana | 35.20% VAT |
| Andhra Pradesh | 31% VAT + Additional Cess |
| Kerala | 30.08% VAT + Social Security Cess |
| Maharashtra | 25% VAT + Additional Flat Tax |
| Gujarat | 13.7% VAT |
This explains why neighboring states often have sharply different fuel prices.
The rapid increase in fuel prices is expected to impact:
Higher fuel prices often lead to increased costs across multiple sectors of the economy.
Public sector oil companies including:
had reportedly delayed fuel price revisions earlier to shield consumers from sudden spikes.
However, rising crude prices and under-recoveries forced companies to implement sequential price hikes.
Industry estimates suggest cumulative under-recoveries approached nearly ₹1.98 lakh crore, putting significant pressure on OMC profitability.
Fuel prices in India are expected to remain volatile over the coming weeks due to:
Any further escalation in Middle East tensions or crude oil disruptions could push petrol and diesel prices even higher across India.
At the same time, investors and consumers will closely watch whether the Central or State Governments announce any excise duty or VAT relief measures to reduce the burden on retail consumers.
Fuel prices are rising due to:
Petrol and diesel prices have surged by nearly ₹5 per litre in less than two weeks after multiple fuel price hikes by Oil Marketing Companies.
Andhra Pradesh currently has the highest petrol price in India at approximately ₹113.44 per litre.
Andaman & Nicobar Islands currently have the cheapest petrol price in India at around ₹84.99 per litre.
Fuel prices vary because state governments impose different:
Petrol price in Delhi is approximately ₹99.51 per litre, while diesel stands around ₹92.49 per litre.
Among major metro cities, Hyderabad currently has one of the highest petrol prices at approximately ₹111.84 per litre.
Fuel prices are revised by Oil Marketing Companies including:
India imports a majority of its crude oil requirements, so rising global crude prices directly increase domestic petrol and diesel prices.
If global crude oil prices continue rising and no tax relief measures are announced, fuel prices in some high-tax states could potentially move closer to ₹120 per litre.
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