Petrol, Diesel Price Hike: What’s Behind The 4th Fuel Price Hike In 12 Days — And Will Rates Go Up Further?

Fuel Price Hike, May 25, 2026: In yet another hike in fuel prices in the country, petrol and diesel prices were raised for the fourth time in the last 12 days. Oil Marketing Companies (OMCs) have increased the prices of petrol by Rs 2.61 a litre and the price of diesel by Rs 2.71 a litre. Following weeks of holding on to higher input costs, oil marketing companies have changed petrol and diesel rates in all the metropolises of the nation and adjusted them at the retail end price level. Petrol now costs 102.12 in Delhi and diesel at 95.20 per litre.

Petrol Prices Today Across Major Cities

Diesel Prices Today Across Major Cities

Why were fuel prices raised again?

The reason is something we are aware of. The immediate trigger is still stress in global energy markets linked to the ongoing conflict involving Iran and supply concerns around the Strait of Hormuz, one of the world’s most important oil shipping routes.

So the cost of buying crude increased, but Indian oil marketing companies continued to sell petrol and diesel at their old retail rates for several weeks. This strategy has been effective in the short term at protecting consumers but reduced margins for the companies.

Industry estimates suggested Indian Oil, BPCL and HPCL together were absorbing losses running into more than ₹1,000 crore a day, making prolonged price protection difficult.

The latest revision is an effort to reduce those losses and bring domestic fuel pricing more in line with global energy costs.

What is surprising this time about the increase?

What is unusual about this increase is timing.

The latest retail price hike comes even as Brent crude fell more than 5% and slipped below $100 per barrel, a level that markets often view as psychologically important.

That has led to questions about why pump prices went up even as crude fell.

The answer lies in pricing lag. Retail fuel rates do not always move instantly with daily crude fluctuations. Companies often adjust based on accumulated procurement costs, inventory purchased earlier at higher rates and expectations around future supply risks.

CNG prices also rise, adding to cost pressure

Fuel pressure is not limited to petrol and diesel. Delhi’s CNG price was increased by ₹1 per kg earlier this week to ₹81.09 per kg, marking the third increase in just 10 days.

That means households, cab operators, goods transport companies and daily commuters are now facing higher costs across multiple fuel categories.

Will petrol and diesel prices rise further?

Whether more hikes follow will depend on three key factors:

Direction of global crude prices over the next few sessions
Developments around West Asia and oil supply routes
How quickly OMC losses stabilise after recent revisions

Should crude fall back below the recent highs and the geopolitics ease, retailers’ pricing pressures could stabilise. Yet if supply remains an issue, fuel markets will remain choppy.

For consumers, the next few weeks may determine whether this increase was a catch-up adjustment or the start of a longer phase of higher fuel prices.

Also Read: Petrol, Diesel Prices Hiked Again By Over Rs 2; Check New Prices In Delhi, Mumbai, Bengaluru, Chennai And More On May 25