India Records Smallest Fuel Price Increase Among Major Economies Amid Global Oil Price Surge

India Resists Global Fuel Price Hikes Amid Iran War and Strait of Hormuz Disruptions

India has continued to post one of the smallest increases in retail petrol and diesel prices despite a sharp rise in global crude oil rates triggered by the ongoing Iran war and disruption linked to the Strait of Hormuz. According to figures compiled from GlobalPetrolPrices.com data and recent Oil Marketing Company (OMC) revisions, fuel prices climbed steeply across several countries between February 23 and May 23, 2026, with some nations registering increases of more than 80 per cent.

Comparison of Fuel Price Increases

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In comparison, India's cumulative revision remained close to five per cent for both petrol and diesel after three upward revisions in May. The latest increase in domestic fuel prices came on May 23, with petrol prices in Delhi rising by 87 paise per litre to Rs 99.51 and diesel rates increasing by 91 paise to Rs 92.49 per litre. This revision marked the third hike within the ten days.

India held petrol and diesel prices essentially unchanged for seventy-six days from the closure of the Strait of Hormuz on February 28, 2026, to the OMC revisions of May 15, 19, and 23, while the rest of the world raised prices by ten, twenty, fifty, and in some cases ninety per cent. The Indian revision of just under five rupees a litre, equivalent to roughly five per cent on a base of about ninety-five rupees, is the smallest material upward movement of any major economy outside the directly subsidising Gulf producers.

The Ministry of Petroleum and Natural Gas said fuel supplies remained stable despite temporary pressure at some outlets. "India has adequate availability of petrol and diesel supplies across the country, which continue to remain stable. Citizens are advised to avoid panic buying and purchase fuel only as per actual requirement," the ministry said in a statement posted on X. It added, "Responsible consumption and public cooperation will help ensure smooth fuel availability for everyone during the ongoing high-demand period."

CNG prices in the national capital were also revised upward for the third time in less than 10 days, increasing from Rs 80.09 per kilogram to Rs 81.09 per kilogram on May 23. The repeated revisions in petrol, diesel, and CNG prices have raised concerns over transport costs and household expenditure.

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India imports nearly 85 per cent of its crude oil requirements, making domestic retail rates sensitive to global oil market movements. Brent crude futures rose to $104.24 per barrel on Friday, while US West Texas Intermediate crude traded at $97.46 per barrel.