Petrol Crosses Rs 100 in Delhi, Diesel at Rs 95.20: Fourth Fuel Price Hike in 10 Days, What It Means for Your Money

Petrol in Delhi hit Rs 102.12/litre on 25 May, up Rs 2.61 in the fourth hike in 10 days. Diesel at Rs 95.20. Total 10-day rise ~Rs 7.38/litre driven by Iran war and Hormuz closure.

The petrol price hike came for the fourth time in 10 days on 25 May 2026, as state-run oil marketing companies, Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL), raised retail fuel prices across India by Rs 2.61 per litre for petrol and Rs 2.71 per litre for diesel. With this latest increase, petrol in Delhi has crossed the Rs 100 mark for the first time since the current hike cycle began, reaching Rs 102.12 per litre. Diesel in Delhi now stands at Rs 95.20 per litre. The trigger: the ongoing US-Iran conflict has pushed India’s crude oil import basket from $69 per barrel in February 2026 to an average of $113 to $114 per barrel in recent months.

Petrol and Diesel Prices Across Major Cities After 25 May Hike

• Delhi: Petrol Rs 102.12/litre (up Rs 2.61) | Diesel Rs 95.20/litre (up Rs 2.71) | CNG Rs 81.09/kg
• Mumbai: Petrol Rs 111.21/litre | Diesel Rs 97.83/litre
• Kolkata: Petrol Rs 113.51/litre (up Rs 2.87) | Diesel Rs 99.82/litre (up Rs 2.80)
• Chennai: Petrol Rs 107.77/litre | Diesel Rs 99.55/litre
• Delhi previous price (before 25 May hike): Petrol Rs 99.51 | Diesel Rs 92.49

Track live fuel prices, OMC stocks and crude oil data on the .

The Full Hike Timeline: Four Times in 10 Days

• 15 May 2026: Rs 3 per litre, first petrol-diesel hike in nearly four years. OMCs had been absorbing losses for months as crude surged above $100.
• 19 May 2026: 90 paise per litre, second hike within the same week.
• 23 May 2026: Petrol up 87 paise, diesel up 91 paise, third hike. CNG in Delhi raised Rs 1/kg to Rs 81.09 on the same day.
• 25 May 2026: Petrol up Rs 2.61, diesel up Rs 2.71, fourth hike in 10 days. Petrol crosses Rs 100 in Delhi.
• Total 10-day cumulative hike: ~Rs 7.38 per litre petrol | ~Rs 7.53 per litre diesel across major cities

This is the sharpest short-window fuel price revision in India since 2022. The first hike in nearly four years came on 15 May, OMCs had been selling fuel below cost for months as crude prices surged following the Iran conflict that began on 28 February 2026. With Strait of Hormuz disruptions severely impacting tanker traffic and India’s crude procurement cost jumping from $69/barrel (February 2026) to $113-114/barrel, the OMC losses became unsustainable.

Tap to Access Best Research Pieces on Univest

Why Petrol and Diesel Prices Are Rising: The Iran War Factor

The Strait of Hormuz, through which approximately 20 to 21 percent of the world’s traded oil passes, has faced severe disruptions since Iran’s closure in response to US-Israeli airstrikes beginning February 28, 2026. India imports 85 to 88 percent of its crude oil requirements, making it among the world’s most exposed large economies to Hormuz disruptions. Brent crude peaked at $126 per barrel in late April 2026 and has since settled in the $105 to $109 range, but this is still 50 to 60 percent above India’s pre-conflict crude import basket of $69 per barrel.

BPCL had stated that the company continued selling fuel at older prices despite rising crude procurement costs, effectively running losses on every litre sold at retail. The decision to begin passing through costs in phased increases (starting 15 May) rather than a single large revision reflects the government’s balancing act between inflation control and OMC financial health. The phased approach, however, creates a different problem: retail consumers face repeated small shocks rather than one adjustment, which may actually be more damaging to consumer confidence.

What the Petrol Price Hike Means for Your Daily Life

1. Transport and Logistics Costs Rise for Everyone

Petrol at Rs 102/litre and diesel at Rs 95/litre in Delhi affects far more than private car owners. Diesel is the fuel of trucks, buses, agricultural machinery and diesel generators, meaning the cost increase flows through to freight rates, food prices and electricity backup costs. The FMCG supply chain, which relies heavily on road logistics, will see operating cost pressure in Q1 FY27. Quick commerce platforms (Swiggy, Zomato) and e-commerce delivery costs will also face upward pressure as last-mile delivery vehicles run on petrol and CNG.

2. Inflation Is Going to Get Worse Before It Gets Better

India’s retail inflation, already elevated by crude oil’s impact on LPG and kerosene, will now face a second wave from petrol and diesel price hikes. A Rs 7.38/litre increase in petrol and Rs 7.53/litre in diesel over 10 days is equivalent to a 7 to 8 percent fuel cost increase for individual consumers and a similar increase in trucking costs. Economists estimate that every Rs 5/litre petrol hike adds approximately 25 to 30 basis points to headline CPI inflation, the 10-day cumulative hike of Rs 7.38 could add 35 to 45 bps to India’s inflation rate, making the RBI’s rate cut path even harder.

3. EMIs Get Harder to Pay as RBI Rate Cuts Are Pushed Back

The RBI had been on a cautious rate cut path before the Iran conflict escalated. With inflation now under fresh upward pressure from fuel costs and a weakening rupee at Rs 96.26, the probability of a near-term RBI rate cut has dropped sharply. Home loan, car loan and personal loan borrowers were hoping for rate reductions in Q2 FY27, the petrol price hike sequence effectively pushes that timeline out by at least one to two quarters. Every 25 bps RBI rate hike (or non-cut) adds approximately Rs 450 to the monthly EMI on a Rs 50 lakh, 20-year home loan.

Stock Market Impact: Which Stocks Win and Which Lose

Biggest Losers: OMC Stocks (BPCL, HPCL, IOCL)

Counterintuitively, BPCL (Rs 284), HPCL and IOCL may not benefit as much as one would expect from petrol price hikes. While higher retail prices reduce the under-recovery per litre, the OMCs are still selling below international parity cost at current crude levels. The four hikes together recover only part of the accumulated losses. IOCL has stated it continues to face under-recovery on LPG cylinders even after the petrol-diesel hike. Markets will watch whether a fifth or sixth hike follows in the coming weeks to judge whether OMC margins are approaching recovery.

Biggest Losers: Aviation (IndiGo, Air India)

Aviation Turbine Fuel (ATF) is diesel-derivative and priced at a premium to diesel. Every Rs 7.53/litre diesel hike translates to an even larger ATF cost increase for airlines. IndiGo’s fuel bill accounts for approximately 35 to 38 percent of total operating costs, a sustained 7 to 8 percent fuel cost increase directly hits EBITDA margins. Analysts had pencilled in margin recovery for IndiGo in FY27; the fuel hike cycle puts that recovery at risk unless IndiGo can raise airfares, which is difficult in a competitive domestic aviation market.

Relative Winners: Renewable Energy and EV Stocks

Every petrol price hike makes electric vehicles economically more attractive relative to petrol vehicles. Tata Motors (EV portfolio), Ola Electric and India’s renewable energy ecosystem (Adani Green, Suzlon, NTPC Renewables) become more compelling from a consumer adoption and government policy perspective as fuel costs rise. The government’s push for PLI in EV manufacturing and green hydrogen gets a stronger economic justification every time petrol crosses a new psychological threshold like Rs 100 in Delhi.

Is a Fifth Petrol Price Hike Coming?

The short answer: possibly yes, if Brent crude stays above $105. The four hikes to date have raised Delhi petrol from approximately Rs 94.74 (pre-15 May) to Rs 102.12, a Rs 7.38 cumulative hike. At $113-114 average crude and the rupee at Rs 96.26, the OMCs’ break-even retail price for petrol is estimated to be between Rs 105 and Rs 112 per litre (depending on the oil company’s crude procurement mix and refining margin assumptions). Delhi petrol at Rs 102.12 is still below this range, suggesting further under-recovery exists. However, the political cost of pushing petrol above Rs 105 in Delhi, where the BJP won in the 2026 state elections, is high, and the government may choose to absorb some under-recovery rather than raise prices further.

Disclaimer: This article is for informational and educational purposes only. Nothing in this article constitutes investment advice, a recommendation to buy or sell securities, or a solicitation of any offer to buy or sell securities. Univest is a SEBI-registered research analyst (INH000014019). Readers should conduct their own research and consult a SEBI-registered investment advisor before making any investment decisions. Past performance of any stock or sector is not indicative of future results. Investments in equity markets are subject to market risks.

FAQs on Petrol Price Hike May 2026

What is the current petrol price in Delhi after the 25 May hike?

Ans. Petrol price in Delhi is Rs 102.12 per litre after a Rs 2.61 hike on 25 May 2026, the fourth increase in 10 days. Diesel in Delhi is Rs 95.20 per litre (up Rs 2.71). CNG in Delhi is Rs 81.09 per kg. In Mumbai, petrol is Rs 111.21 and diesel Rs 97.83. In Kolkata, petrol is Rs 113.51 and diesel Rs 99.82. In Chennai, petrol is Rs 107.77 and diesel Rs 99.55.

How much has petrol risen in the last 10 days?

Ans. Petrol has risen approximately Rs 7.38 per litre in 10 days through four hikes: Rs 3/litre on 15 May (first hike in 4 years), 90 paise on 19 May, 87 paise on 23 May, and Rs 2.61 on 25 May. Diesel has risen approximately Rs 7.53 per litre in the same period.

Why are petrol and diesel prices rising in India in May 2026?

Ans. Petrol and diesel prices are rising because India’s crude oil import basket has jumped from $69 per barrel in February 2026 to $113-114 per barrel following the US-Iran conflict that began 28 February 2026. The Strait of Hormuz closure severely disrupted global oil supply. OMCs (IOCL, BPCL, HPCL) were absorbing losses but have now begun passing through costs in phased hikes since 15 May 2026.

Will petrol prices rise further in 2026?

Ans. If Brent crude stays above $105 per barrel, a fifth hike is possible. Delhi petrol at Rs 102.12 may still be below the OMC break-even price of Rs 105-112 per litre at current crude levels. A US-Iran peace deal reducing crude to $80-90 would be the primary factor that halts the hike cycle. Track crude prices and OMC updates live on Univest.