India’s state-run fuel retailers have increased petrol and diesel prices for the first time in four years, raising rates by 3 rupees per litre as the country grapples with surging global oil prices linked to disruptions around the Strait of Hormuz.
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The price increase, confirmed by Bharat Petroleum Corporation Limited (BPCL), affects fuel sold by India’s three major state-owned retailers — Indian Oil Corporation, Hindustan Petroleum Corporation Limited (HPCL) and BPCL — which together operate more than 90 percent of the country’s fuel stations.
Following the hike, diesel prices in Delhi rose to 90.67 rupees per litre, while petrol climbed to 97.77 rupees per litre, reflecting increases of more than 3 percent.
India, the world’s third-largest oil importer and consumer, had delayed raising retail fuel prices despite global crude prices surging above $120 per barrel earlier this year before stabilising around $100 to $105.
The increase comes as the Indian government introduces austerity measures to reduce fuel consumption and contain rising import costs amid continuing instability in the Middle East.
Prime Minister Narendra Modi recently urged steps including fuel conservation, remote working arrangements, reduced travel and lower imports to ease pressure on the country’s foreign exchange reserves.
Several Indian states have already instructed government departments to restrict travel, move meetings online and adopt partial work-from-home schedules.
Analysts warned the fuel price increase could weaken demand growth. According to Mumbai-based ICRA Ltd, projected gasoline demand growth has been revised down to 3–4 percent from earlier expectations of 5–6 percent.
Energy market experts also said the latest increase may not fully offset the losses suffered by fuel retailers due to elevated global crude prices, suggesting additional hikes could follow in the coming months.
Shares of Indian fuel retailers declined after the announcement, with Indian Oil, HPCL and BPCL all posting losses in trading.
