Fuel Price Hike Details
Petrol and diesel prices across West Bengal saw a significant increase of ₹3 per litre each, effective May 15, 2026. This nationwide revision, announced by state-owned oil marketing companies including Indian Oil, Bharat Petroleum, and Hindustan Petroleum, marks the first hike since March 21, 2025. The adjustment follows a prolonged period of price stability maintained by the government ahead of state assembly elections.
Consumers in key West Bengal cities are now paying the following rates:
- Kolkata: Petrol ₹108.70/litre, Diesel ₹95.13/litre
- Darjeeling: Petrol ₹108.70/litre, Diesel ₹95.13/litre
- Howrah: Petrol ₹108.70/litre, Diesel ₹95.13/litre
While the base hike is uniform, the final retail price varies by city due to local taxes and transportation costs.
Why the Sudden Increase?
Electoral Calendar and Cost Pressures
The timing of this fuel price revision is directly linked to the electoral calendar. Historically, fuel prices in India have often been kept stable or on hold in the months leading up to state elections to avoid potential voter backlash. With the State assembly elections 2026 now concluded, the government has moved to address the accumulated backlog of unabsorbed cost pressures.
Global crude oil prices have remained elevated in recent months, exacerbated by disruptions to shipping routes in West Asia and ongoing tensions around the Strait of Hormuz. India, which imports more than half of its oil via this route, has been diversifying its sources, with 70 percent of crude imports now routed outside Hormuz. Despite these efforts, the high international prices contribute significantly to the cost burden.
Global Crude and Rupee Impact
The Ministry of Petroleum and Natural Gas previously reported substantial 'under-recoveries' by Oil Marketing Companies (OMCs) – approximately ₹26 per litre on petrol and ₹81.90 per litre on diesel, amounting to a combined daily absorption of about ₹2,400 crore. These under-recoveries accumulate when OMCs sell fuel below its actual cost.
Another critical factor is the rupee's depreciation against the US dollar. As India imports the majority of its crude oil requirements, a weaker rupee increases the cost of purchasing crude in international markets, directly impacting retail fuel prices and squeezing the margins of state-owned OMCs.
Factors Influencing Retail Fuel Prices
Several key variables determine what consumers pay at the pump:
- International Crude Oil Prices: This is the primary determinant, as India imports most of its crude. Global price swings directly influence domestic rates.
- Rupee-Dollar Exchange Rate: A weaker rupee makes crude imports more expensive, leading to higher retail prices.
- Government Taxes: Both central and state governments levy significant taxes, often accounting for more than half of the final price. This is why prices vary considerably across states.
- Transportation Costs: The cost of transporting fuel from refineries to distribution points and retail outlets also adds to the final price.