Fuel consumers in Rajasthan are facing higher costs as petrol and diesel prices have been hiked by ₹3 per litre across the state, effective immediately from May 15, 2026. This marks the first significant revision in fuel rates since March 21, 2025, following a prolonged pause by oil marketing companies.
New Fuel Rates in Major Rajasthan Cities
Following the revision, the new retail prices in key cities of Rajasthan are as follows:
- Jaipur: Petrol at ₹107.97/litre, Diesel at ₹93.23/litre
- Jodhpur: Petrol at ₹107.97/litre, Diesel at ₹93.23/litre
- Bikaner: Petrol at ₹107.97/litre, Diesel at ₹93.23/litre
These rates reflect the uniform ₹3 per litre increase on both petrol and diesel across the state, though local taxes and transportation costs may lead to minor variations in other smaller cities.
Reasons Behind the Price Hike
The upward revision in fuel prices is attributed to a confluence of factors, primarily the conclusion of state assembly elections, which typically see a moratorium on price adjustments to avoid voter backlash. With polling now complete, oil marketing companies (OMCs) are passing on accumulated cost pressures to consumers.
Global Crude Oil Prices and Rupee Depreciation
Elevated global crude oil prices have played a significant role. Recent disruptions to shipping routes in West Asia and ongoing tensions around the Strait of Hormuz, through which India imports a substantial portion of its crude, have kept international benchmarks high. India, being a major crude importer, is highly susceptible to these global price swings.
Adding to the import burden is the weakening of the Indian Rupee against the US Dollar. A depreciating rupee makes crude oil imports more expensive, directly impacting the OMCs' procurement costs and subsequently, retail fuel prices.
Under-Recoveries by OMCs
The Ministry of Petroleum and Natural Gas had previously indicated substantial 'under-recoveries' by state-owned OMCs, including Indian Oil, Bharat Petroleum, and Hindustan Petroleum. These under-recoveries, estimated at approximately ₹26 per litre on petrol and ₹81.90 per litre on diesel at current international crude prices, represent the losses incurred by OMCs by selling fuel below cost. The combined daily under-recovery was reported to be around ₹2,400 crore last month, necessitating a price correction.
Factors Influencing Fuel Prices in India
Retail fuel prices in India are a complex calculation influenced by several key variables:
- International Crude Oil Price: This is the most significant component, as India imports the majority of its crude requirements.
- Rupee-Dollar Exchange Rate: A weaker rupee increases the cost of crude imports.
- Central and State Taxes: Taxes levied by both the Union and state governments constitute a substantial portion of the final retail price, often more than half. This is the primary reason for price variations across different states and cities.
- Dealer Commission and Transportation Costs: These also contribute to the final price at the pump.
The current hike reflects the OMCs' move to mitigate financial strain from these combined pressures after a prolonged period of stable rates.