Long queues and chaotic scenes broke out at petrol pumps across major Indian cities after the central government raised petrol and diesel prices by ₹3 per litre.
This marks the first time in over four years that retail fuel prices have been increased in India. The sudden announcement caused panic among motorists, who rushed to fill their tanks before the new rates took effect.
New Fuel Rates in Major Cities
The new prices for a litre of fuel across key metros are now:
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Delhi: Petrol ₹97.77 | Diesel ₹90.67
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Mumbai: Petrol ₹106.68 | Diesel ₹93.14
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Kolkata: Petrol ₹108.74 | Diesel ₹95.13
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Chennai: Petrol ₹103.67 | Diesel ₹95.25
(Note: CNG prices were also bumped up by ₹2 per kg, bringing the price in Delhi to ₹79.09.)
Why Did Prices Go Up?
The price hike is a direct result of the ongoing conflict in West Asia and the blockade of the Strait of Hormuz, which has been shut for over 70 days. This shipping crisis has driven global Brent crude prices past $104 per barrel.
State-run oil marketing companies (like IOCL, BPCL, and HPCL) had been absorbing the shock for over two months to protect consumers, suffering massive losses of nearly ₹1,000 crore ($120 million) per day. The ₹3 increase is an attempt to recover some of those losses.
Panic-Buying at the Pumps
Word of the impending price hike spread rapidly on Thursday night, prompting a massive rush.
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Crowd Control: Gas stations from Delhi-NCR to Jaipur saw lines stretching down main roads.
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Fuel Shortages: Many consumers swapped their usual daily limit to top off their tanks completely, causing some local stations to temporarily run out of stock and display “No Fuel” signs.
What Happens Next?
Economists warn that while a ₹3 increase feels small on paper, its indirect impact will trigger broader inflation. Because the vast majority of India’s food and goods rely on diesel-powered trucks, transport and freight costs are expected to rise quickly, which will likely push up the prices of daily essentials like vegetables, milk, and packaged items in the coming weeks.