Indian consumers are facing increased transportation costs as state-run oil marketing companies (OMCs) announced a fresh hike in petrol and diesel prices on May 23, 2026. This marks the third fuel price revision upwards within the current month, adding further financial strain on households and businesses across the country.
Third Monthly Hike Impacts Fuel Rates
Under the latest revision, petrol prices have been raised by ₹0.87 per litre, while diesel prices have gone up by ₹0.91 per litre across the nation. This follows two earlier increases this month, including a 90 paise per litre hike just days prior, and an initial ₹3 per litre increase announced earlier in May.
The cumulative effect of these adjustments has pushed fuel rates significantly higher in major Indian cities. As of the latest update:
- Delhi: Petrol now costs ₹99.51 per litre, and diesel is priced at ₹92.49 per litre.
- Kolkata: Petrol reaches ₹110.64 per litre, with diesel at ₹97.02 per litre.
- Mumbai: Consumers pay ₹108.49 per litre for petrol and ₹95.02 per litre for diesel.
- Chennai: Petrol stands at ₹105.31 per litre, while diesel is ₹96.98 per litre.
Global Crude Oil Prices Drive Domestic Increases
The primary driver behind these repeated domestic fuel price hikes is the sustained rise in international crude oil prices. Geopolitical tensions, particularly in the Middle East, continue to exert upward pressure on global energy markets. India, which imports approximately 85% of its crude oil requirements, remains highly susceptible to these international fluctuations.
OMCs had reportedly been absorbing significant financial losses, estimated at around ₹1,000 crore per month, before implementing these recent price adjustments. This absorption period had kept domestic retail prices relatively stable for several months, even as global benchmarks climbed.
Key International Benchmarks
Global benchmark Brent crude futures recently climbed to USD 104.24 per barrel, marking a 1.6% increase. Similarly, US West Texas Intermediate (WTI) crude rose to USD 97.46 per barrel, up 1.2%. Oil prices have seen considerable volatility amid shifting expectations regarding a potential Iran peace agreement and broader geopolitical developments affecting supply.
In previous years, India relied heavily on discounted crude oil supplies from Russia to mitigate import costs and shield consumers from sharp price swings. However, with crude prices now consistently above the USD 100 per barrel mark, OMCs have begun to adjust domestic retail fuel prices to reflect the current market realities.