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Centre Hikes Petrol, Diesel Prices by Rs 3 Amid Iran War
On May 15, 2026, the Centre raised petrol and diesel prices in four metro cities by Rs 3 per litre, the first such hike in four years. CNG prices rose by Rs 2 per kg in Delhi (to Rs 79.09) and in Mumbai a day earlier (to Rs 84 per kg in the MMR). The move comes amid rising global crude prices linked to the Iran war and ongoing inflationary pressures.
Why It Matters
The price hike affects transportation and logistics costs, potentially fueling inflation and impacting household spending. It reflects how global energy shocks influence domestic fuel pricing and broader economic performance.
Timeline
4 Events
Petrol and diesel price hike in four metros; Delhi CNG rise; government campaign
May 15, 2026
Centre increased retail prices of petrol and diesel in four metro cities by Rs 3 per litre, effective May 15, 2026—the first such increase in four years. CNG price in Delhi rose by Rs 2 per kg to Rs 79.09. The Delhi government announced a 90-day public campaign to reduce fuel consumption and two days of work from home for government offices.
Mumbai CNG price hike by Rs 2 per kg
May 14, 2026
CNG price in Mumbai rose by Rs 2 per kg, with the rate in the Mumbai Metropolitan Region increasing to Rs 84 per kg.
Premium petrol price hike in March
March 2026
In March 2026, the prices of premium petrol were raised by the state-run oil marketing companies, setting the context for further retail price adjustments.
Iran war begins; crude price rise impacts OMCs
February 28, 2026
The Iran-West Asia conflict began on February 28, 2026. Indian oil marketing companies had been profitable before the war, but losses started mounting within weeks as global crude prices rose, with India's imported crude basket averaging about $69 per barrel in February and rising to around $113-114 per barrel in subsequent months.