Fuel Price Update: OMCs Adjust Prices on May 18 - Nationwide Rate Rundown
Fuel Prices in India: Rates and Trends on May 18, 2026
Market experts are pointing to the possibility of another round of fuel price hikes in India, despite oil marketing companies (OMCs) not indicating any such move so far. This follows a recent price increase of Rs 3 per litre across India, which was announced just days ago.
Petrol Rates Across Major Cities in India
The current petrol rates across major cities in India on Monday, May 18, 2026, are as follows:
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| City | Petrol Price (Rs per litre) |
|---|---|
| Delhi | 109.16 |
| Mumbai | 113.38 |
| Chennai | 109.52 |
| Kolkata | 109.92 |
The Centre has revised the windfall profit tax on fuel exports, effective May 16, 2026. The government has imposed a special additional excise duty (SAED) of Rs 3 per litre on petrol exports for the first time since the start of the West Asia crisis. Meanwhile, the export duty on diesel was reduced to Rs 16.5 per litre from Rs 23 per litre, while the levy on aviation turbine fuel (ATF) was cut to Rs 16 per litre from Rs 33 per litre.
Changes in Export Duties on Fuel Exports
| Fuel | Initial Duty | Revised Duty |
|---|---|---|
| Diesel | Rs 23 per litre | Rs 16.5 per litre |
| ATF | Rs 33 per litre | Rs 16 per litre |
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
The government had first imposed export duties on March 26, 2026, setting the levy at Rs 21.5 per litre on diesel and Rs 29.5 per litre on ATF. In the April 11 review, these rates were raised sharply to Rs 55.5 per litre and Rs 42 per litre, respectively. They were later reduced to Rs 23 per litre on diesel and Rs 33 per litre on ATF in the April 30 review.
The windfall tax was introduced to improve domestic fuel availability amid supply concerns linked to the ongoing West Asia conflict involving the US, Israel, and Iran. Meanwhile, CNG prices have been raised for the second time in 48 hours in the national capital and several cities across northern India, adding to pressure on consumers amid broader fuel cost concerns.
CNG Price Hike
The price of compressed natural gas (CNG) has been increased by Rs 1 per kg, with the latest revision effective Sunday, May 17, 2026. In New Delhi, CNG will now retail at Rs 80.09 per kg. This follows an earlier hike of Rs 2 per kg announced on Friday, May 15, taking the cumulative increase over two days to Rs 3 per kg.
LPG prices, however, remain unchanged so far.
Investor Takeaway
Investors should be prepared for potential fuel price hikes in the near future.
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