Consumers across Odisha are facing higher fuel costs as petrol and diesel prices saw a significant increase of ₹3 per litre, effective May 15, 2026. This marks the first such revision since March 21, 2025, ending a prolonged period of stable rates that preceded recent state assembly elections.
New Fuel Prices in Odisha Cities
Following the nationwide hike, fuel rates in major Odisha cities have been updated:
- Bhubaneswar: Petrol at ₹104.19/litre, Diesel at ₹95.74/litre
- Cuttack: Petrol at ₹104.19/litre, Diesel at ₹95.74/litre
- Puri: Petrol at ₹104.19/litre, Diesel at ₹95.74/litre
Reasons Behind the Hike
The Ministry of Petroleum and Natural Gas attributed the price adjustment to a combination of factors, including elevated global crude oil prices and the depreciation of the Indian rupee against the US dollar. Oil marketing companies (OMCs) had reportedly been absorbing substantial "under-recoveries" – the difference between the cost of crude and the retail price – for several months.
According to the Ministry, under-recoveries stood at approximately ₹26 per litre on petrol and ₹81.90 per litre on diesel at current international crude prices. OMCs were absorbing an estimated ₹2,400 crore daily in combined under-recoveries, a burden that became unsustainable post-elections.
"Now that polling has concluded, the accumulated pressure of elevated global crude prices and a weaker rupee has been passed on to consumers," stated the Ministry of Petroleum and Natural Gas.
The timing of the hike is largely seen as linked to the electoral cycle, as governments often defer such increases to avoid voter backlash during election periods. With the state assembly elections 2026 now concluded, the government has moved to address the backlog of unabsorbed cost pressures.
Global and Domestic Factors Influencing Fuel Prices
Global crude oil prices have remained high in recent months, influenced by disruptions to shipping routes in West Asia and ongoing geopolitical tensions, particularly around the Strait of Hormuz. India, a major oil importer, sources a significant portion of its crude via these routes, although efforts are underway to diversify supply chains, with 70% of crude imports now routed outside of Hormuz.
Domestically, the rupee's performance against the dollar is a critical determinant. A weaker rupee increases the cost of importing crude oil, directly impacting retail fuel prices. Additionally, central and state government taxes, along with transportation costs, contribute significantly to the final price consumers pay at the pump, leading to variations across different cities and states.