Fuel Prices on May 21: Modi Government to Review Market Trends Amid Potential Price Hikes

Fuel Price Hikes and Supply Disruptions: India's Council of Ministers to Meet Amid Concerns

India's Council of Ministers is set to hold a crucial meeting in New Delhi on May 21, 2026, amidst concerns over fuel and power supply. This is the first time the Council will be meeting this year, and the significance of the meeting has been heightened due to the recent price revisions in petrol and diesel rates.

In the last ten days, India has seen two price revisions in petrol and diesel rates. The first hike was Rs 3 across all major cities, while the second hike earlier this week was marginally lower. Experts have pointed out that further price hikes may be the necessity of the hour as oil marketing companies struggle with significant losses due to heightened crude volatility.

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The country's state-run refiner, Bharat Petroleum Corporation (BPCL), is recalibrating its crude import strategy almost every day and increasing spot purchases after the US-Israel conflict with Iran disrupted Middle East oil supplies. Chairman Sanjay Khanna stated that the company had initially planned to source around 55% of its crude oil requirement for FY27 through annual contracts, primarily from Middle Eastern producers, with the remaining volumes to be procured from spot markets.

However, force majeure declarations by some Gulf suppliers have forced BPCL to increase spot purchases to keep its refineries operating at 115% capacity, Khanna said. The company operates three refineries in India with a combined processing capacity of 706,000 barrels per day of oil.

India, the world's third-largest oil importer and consumer, has been impacted by rising crude prices and supply disruptions following the closure of the Strait of Hormuz. The country has already raised petrol and diesel prices twice within a week. LPG rates across cities in India on May 21, 2026, are as follows:

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Diesel rates across cities in India on May 21, 2026, are also as follows:

The suspense builds around the key policy decisions, with speculation rife about the possibility of further fuel rate hikes or a work-from-home mandate. Only time will tell what the outcome of the meeting will be.