India's state-run refiners raised retail prices of diesel and petrol multiple times in May 2026, including at least three or four hikes within 8 to 10 days, marking the first price increases in nearly four years [1, 2, 3, 4]. On May 23, diesel prices rose to around 92.49 rupees per liter and petrol to approximately 99.51 rupees per liter in New Delhi, increases of nearly 1% or less than 1 rupee per liter, according to Indian Oil Corp [1, 3, 4]. Some sources reported this as the third hike in eight days, while others counted four hikes in 10 days, reflecting a slight disagreement on the exact number [1, 2, 3, 4].
By May 25, cumulative petrol price increases over the past 10 days reached about 7.8%, with diesel rising slightly more at 8.6% [2]. Prices vary across Indian states due to differing local taxes [1, 2, 3, 4]. Private fuel retailers like Shell India charge significantly higher rates. Shell petrol prices exceeded 116 rupees per liter and diesel topped 127 rupees per liter, compared to state refiners who control nearly 90% of the fuel retail market [2, 4].
State refiners had kept pump prices effectively frozen for almost four years before this recent run of increases [2]. Retailers are now facing major financial strain caused by rising demand and fixed losses from low prices earlier. Bharat Petroleum Corp Ltd (BPCL) reported selling diesel at losses of 25 to 30 rupees per liter and petrol at losses of 10 to 14 rupees per liter [4].
The government has urged consumers to act responsibly and cooperate to prevent panic buying during this period of high demand [3, 4]. Economist Radhika Piplani of Motilal Oswal Financial Services said the fuel price rises could push inflation to 5.7% for the financial year, above the Reserve Bank of India's 4.6% forecast, and predicted further hikes in retail fuel and LPG prices [2].
According to timeline data, state refiners first raised prices by over 3% on May 15, 2026, the first increase in four years [4]. Two smaller hikes followed between May 17 and 23. The May 23 hike brought petrol prices in New Delhi to 99.51 rupees per liter and diesel to 92.49 rupees per liter [1, 3, 4]. On May 25, prices reportedly rose again to 102.12 for petrol and 95.20 for diesel in New Delhi, marking the fourth increase over 10 days [2].
