Petrol and diesel prices in Haryana, along with other states across India, have seen a significant hike of ₹3 per litre, effective May 15, 2026. This marks the first revision in fuel rates since March 21, 2025, ending a prolonged period where prices were held steady ahead of state assembly elections.
New Fuel Rates in Haryana Cities
Following the nationwide increase, residents in major Haryana cities will now pay revised rates. For instance, in Gurugram, Faridabad, and Rohtak, petrol is now priced at ₹98.95 per litre, while diesel stands at ₹91.41 per litre. These retail prices incorporate local taxes and transportation costs, which cause variations across different cities within the state.
Reasons Behind the Price Hike
The upward revision comes as state-owned oil marketing companies (OMCs) pass on accumulated cost pressures to consumers. Several factors have contributed to this decision:
- Elevated Global Crude Prices: International crude oil prices have remained high due to disruptions in West Asia shipping routes and ongoing geopolitical tensions, particularly around the Strait of Hormuz. India, a major oil importer, is heavily affected by these global movements.
- Weakening Rupee: The Indian rupee's depreciation against the US dollar has made crude oil imports more expensive, further squeezing the margins of OMCs like Indian Oil, Bharat Petroleum, and Hindustan Petroleum.
- Under-recoveries: Before this hike, OMCs were reportedly absorbing substantial under-recoveries, estimated at ₹26 per litre on petrol and ₹81.90 per litre on diesel. The combined daily under-recovery was approximately ₹2,400 crore.
Timing Linked to Electoral Calendar
The timing of the fuel price adjustment is closely tied to the country's electoral cycle. Historically, fuel prices in India have often been frozen or kept stable during election periods to avoid potential voter backlash. With the conclusion of the State assembly elections 2026, the government and OMCs have moved to address the backlog of unabsorbed operational costs.
How Fuel Prices are Determined
Retail fuel prices in India are a complex calculation influenced primarily by the international price of crude oil, as India imports a significant portion of its requirement. The rupee-dollar exchange rate also plays a crucial role. Furthermore, central and state government taxes constitute a large portion of the final price, leading to significant variations in rates across different states and cities. Local transportation costs and demand-supply dynamics also factor into the final price at the pump.