India’s state-run oil marketing companies (OMCs), Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) have raised petrol and diesel prices by Rs 3 per litre across the country.
In Delhi, petrol prices moved from Rs 94.77 to Rs 97.77 per litre. Diesel prices in the capital rose from Rs 87.67 to Rs 90.67 per litre. Delhi is now closer to the Rs 100 mark on petrol than it has been in recent memory.
Also Read: India’s wholesale inflation rises to 8.3% led by Crude petroleum
City-wise prices after hike
Fuel prices vary across cities due to differences in state-level Value Added Tax (VAT) and local levies.
Before this hike, Mumbai was among the most expensive metros, with petrol at Rs 103.54 per litre and diesel at around Rs 90.03 per litre. After the Rs 3 revision, Mumbai petrol crosses Rs 106 per litre.
Kolkata petrol was already at Rs 103.94 per litre, making it one of the higher-priced cities. Post-hike, rates there cross Rs 106 per litre as well.
Thiruvananthapuram had recorded the highest petrol price in the country at approximately Rs 107.48 per litre as of May 1, 2026. That figure climbs further with the new revision.
Why prices were hiked
Public sector OMCs have been suffering heavy under-recoveries estimated at nearly Rs 30,000 crore per month.
Oil Minister Hardeep Singh Puri stated that OMCs were bearing a Rs 1,000 crore loss per day for selling fuel at prices lower than cost.
At $126 per barrel crude oil, even a Rs 5 per litre hike would still leave the OMCs absorbing losses per litre, but it would slow the balance sheet deterioration.
OMC losses and financial pressure
IOC is building new refining capacity, BPCL has committed to green energy investments, and HPCL is expanding its Rajasthan refinery, all capex plans under pressure due to sustained losses.
BPCL’s stock fell approximately 28% in single month through early April 2026. It hit close to its 52-week low of Rs 262.95.
The three OMCs together control the bulk of India’s fuel retail network. A prolonged price freeze had left their finances severely strained.
Crude oil and global factors
Brent crude above $110 per barrel shows sustained geopolitical supply disruption tied to Hormuz blockade in Iran.
Any movement in overseas oil prices impacts local petrol and diesel rates.
How fuel prices are structured
Fuel prices in India are made up of OMC costs, Value Added Tax (VAT) which differs from state to state, excise duty which is uniform across all states, and dealer commission. This is why the same hike results in different final pump prices in different cities.
Consumers can check daily revised prices by sending an SMS to their respective OMC (IOC, BPCL, or HPCL) or by visiting their official websites. Prices undergo revision every day at 6 am.