Consumers in Bihar are now paying more for fuel, as both petrol and diesel prices have been increased by ₹3 per litre, effective May 15, 2026. This significant adjustment marks the first such hike since March 21, 2025, ending a prolonged period of stable fuel rates across India.
The revision comes shortly after the conclusion of state assembly elections in 2026. Historically, fuel prices have often been kept steady during electoral periods to avoid potential voter discontent. With the elections now over, state-owned oil marketing companies (OMCs) like Indian Oil, Bharat Petroleum, and Hindustan Petroleum have moved to absorb the accumulated cost pressures.
Why the Price Hike?
Several factors have contributed to the upward revision of fuel prices:
- Global Crude Oil Prices: International crude oil prices have remained elevated due to disruptions in shipping routes, particularly in West Asia, and ongoing geopolitical tensions around the Strait of Hormuz. India imports a substantial portion of its crude oil, making it highly susceptible to global market fluctuations.
- Weakening Rupee: The Indian rupee's depreciation against the US dollar has increased the cost of importing crude oil. Since oil is primarily traded in dollars, a weaker rupee translates to higher procurement costs for OMCs.
- Under-recoveries: The Ministry of Petroleum and Natural Gas had previously indicated significant under-recoveries for OMCs, estimating approximately ₹26 per litre on petrol and ₹81.90 per litre on diesel at current international crude prices. These under-recoveries, amounting to roughly ₹2,400 crore daily, were being absorbed by the companies.
New Rates in Key Bihar Cities
While the ₹3 per litre hike applies across the board, final retail prices vary by city due to local taxes and transportation costs. As of May 15, 2026, the new rates in some major Bihar cities are:
- Patna: Petrol ₹108.55/litre, Diesel ₹94.63/litre
- Muzaffarpur: Petrol ₹108.55/litre, Diesel ₹94.63/litre
- Gaya: Petrol ₹108.55/litre, Diesel ₹94.63/litre
These figures reflect the immediate impact of the nationwide adjustment combined with Bihar's specific tax structure.
Understanding Fuel Price Dynamics
Retail fuel pricing in India is primarily influenced by two major variables: the international price of crude oil and the rupee-dollar exchange rate. Taxes levied by both central and state governments constitute a significant portion—often more than half—of the final price consumers pay. This explains the variation in fuel rates across different states and cities, alongside local transportation costs and demand-supply conditions.