India Hikes Petrol, Diesel Prices Amid Escalating Israel-Iran Conflict and Global Oil Pressure

India has increased petrol and diesel prices by ₹3 per litre as rising crude oil costs, triggered by the Israel-Iran conflict and Strait of Hormuz tensions, continue impacting global energy markets.

New Delhi | May 15, 2026 The Central Government has increased petrol and diesel prices by approximately ₹3 per litre across the country amid mounting pressure from rising global crude oil prices linked to the ongoing Israel-Iran conflict and disruptions in the Strait of Hormuz. The revision marks India’s first major fuel price hike in nearly four years.

Following the increase, petrol prices in Delhi rose to ₹97.77 per litre while diesel prices climbed to ₹90.67 per litre. State-run fuel retailers including Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation implemented the revised rates on Friday.

The latest fuel price surge comes as geopolitical tensions in West Asia continue disrupting global oil supplies. The ongoing conflict involving Israel, Iran and the United States has severely affected shipping movement near the Strait of Hormuz — one of the world’s most critical oil transit routes through which nearly 20% of global oil supply normally passes.

International crude oil prices had recently surged above $120 per barrel before stabilising around the $100-$105 range, significantly increasing pressure on oil-importing countries like India. Analysts warn that continued instability in the Middle East could trigger further inflationary pressure on transportation, aviation and household expenses.

Reserve Bank of India Governor Sanjay Malhotra had earlier warned that prolonged tensions in West Asia could eventually force India to pass rising fuel costs on to consumers. He noted that elevated global energy prices are already testing India’s inflation management efforts and could impact future monetary policy decisions.

The hike has also intensified political reactions across the country. Opposition parties criticised the Centre over rising inflation concerns, while government leaders defended the decision, arguing that global energy disruptions have left little room to avoid retail fuel revisions.

Experts believe the increase could affect transportation costs, airline fares and prices of essential goods in the coming weeks. The aviation industry has already begun reducing some international operations due to sharply rising jet fuel costs linked to the same crisis.

Follow us On Our Social media Handles :
Instagram
Youtube
Facebook
Twitter

Also Read- Pune