Residents of the Union Territories of Dadra and Nagar Haveli and Daman and Diu are facing higher fuel costs following a significant price revision. Effective May 15, 2026, both petrol and diesel prices have seen an increase of ₹3 per litre.
The updated retail prices for these regions are now ₹90.91 per litre for petrol and ₹95.33 per litre for diesel.
National Fuel Price Revision
This localized hike is part of a broader national upward revision in petrol and diesel prices across India, announced by oil marketing companies. It marks the first such increase since March 21, 2025, ending a prolonged period of stable fuel rates that were maintained ahead of recent state assembly elections.
With the polling now concluded, the accumulated pressures from elevated global crude oil prices and a weakening Indian rupee against the US dollar are being passed on to consumers.
Why the Prices Are Rising
Several factors contribute to the current fuel price surge:
- Global Crude Oil Prices: International crude oil prices have remained high in recent months, largely due to disruptions in West Asian shipping routes and ongoing tensions around the Strait of Hormuz, a crucial transit point for India's oil imports.
- Rupee Depreciation: The Indian rupee's slide against the US dollar makes crude oil imports more expensive, directly impacting the margins of state-owned oil marketing companies (OMCs) like Indian Oil, Bharat Petroleum, and Hindustan Petroleum.
- Under-recoveries: The Ministry of Petroleum and Natural Gas previously reported significant under-recoveries for OMCs, estimating approximately ₹26 per litre on petrol and ₹81.90 per litre on diesel at current international crude prices. The combined daily under-recovery absorbed by OMCs was around ₹2,400 crore.
Understanding Fuel Pricing in India
The retail price of petrol and diesel in India is determined by a combination of factors:
- International Crude Oil Price: As India imports the majority of its crude oil, global price fluctuations have the most substantial impact on domestic rates.
- Rupee-Dollar Exchange Rate: A weaker rupee increases the cost of purchasing crude oil from international markets.
- Central and State Taxes: Taxes levied by both the central and state governments constitute a significant portion of the final retail price, often exceeding half of what consumers pay. These taxes are also why fuel prices vary considerably across different states and cities.
- Transportation Costs: The cost of transporting fuel from refineries to retail outlets also contributes to the final price at the pump.