Petrol and diesel prices in India have been under the scanner over the last few days due to the recent price hikes. Both petrol and diesel prices shot up by ₹8 a litre in May 2026. The reason behind these price hikes was cited as the stressed supply line of fuel due to the ongoing conflict in the Middle East. Keeping pace with the petrol and diesel, CNG prices too were hiked multiple times. Now, Union Minister of State for Petroleum and Natural Gas, Suresh Gopi, has said that fuel prices would be reviewed based on the availability of crude oil supplies in the country.
Responding to a question about the possibility of petrol and diesel price revision, Gopi said that the situation would be assessed based on the crude oil supply in India. “Let us see the supply of crude oil. We have the minister concerned, Hardeep Singh Puri. Let it come,” PTI has quoted Gopi saying.
While the global crude oil markets remained volatile amid ongoing tensions in the West Asia crisis, petrol and diesel prices remained unchanged across India over the last week, as the state-owned oil marketing companies continued to hold fuel rates steady. Petrol and diesel prices were last revised in May 2026, when rates were increased by ₹3 per litre.
What determines petrol and diesel prices in India?
The retail prices of petrol and diesel in fuel stations across India are influenced by a mix of global and domestic factors. While the international price of crude oil is the most significant influencing factor, the foreign exchange rate also plays a key role in determining the retail price of fuel.
The petrol and diesel prices differ across cities and states in India owing to the variations in state-level taxes. The central government levies excise duty on fuel, while state governments impose their respective value-added tax (VAT). In addition to that, transportation and distribution costs, along with local demand and supply conditions, can also influence the retail price that consumers pay at the fuel station.
These multiple factors result in variable retail prices for petrol and diesel across India.
