Public-sector oil-marketing companies (OMCs) are absorbing losses of nearly ₹550 crore per day by not passing the full impact of rising international crude prices to retail consumers amid disruptions triggered by the West Asia conflict, the Government said on Wednesday (May 27, 2026).

The issue figured prominently during the sixth meeting of the Informal Group of Ministers (IGoM) on West Asia, chaired by Defence Minister Rajnath Singh at Kartavya Bhawan-2 in New Delhi.

The Government said the OMCs were absorbing losses to protect retail consumers from the volatility in global energy markets.

Further, authorities also flagged concerns over industrial users allegedly diverting purchases to retail outlets to take advantage of the protected fuel prices.

Officials noted instances of black marketing by some dealers, prompting intensified enforcement measures by the Ministry, oil companies and State Governments.

“Industrial consumers who divert their purchases from the industrial channel to the retail pump capture this cushion at the cost of the ordinary citizen. They also concentrate demand at the pump in a way that produces local shortages where none would otherwise exist,” read a govt statement.

According to the government, the country’s privately-owned OMCs have observed an approximately 38% decline in sales of diesel in the ongoing month — from both retail and bulk consumers — owing to their higher prices.

Thus, shifting their demand to public-sector OMCs having comparatively lower prices. Further, according to the government, PSU bulk consumer volumes have also declined approximately 29% – as they migrate to retail outlets. For context, bulk and retail diesel have a price differential of about ₹40 per litre.

Defence Minister urges citizens to refrain from panic-buying

In a post on X after the meeting, Mr. Singh said the supply situation in the country remains normal and appealed to citizens not to indulge in panic buying of petrol, diesel or LPG cylinders.

The Government underlined that India’s fuel supply position remains secure despite global disruptions. India currently has an installed refining capacity of 258.1 million tonnes per annum (MTPA) against domestic consumption of 243.2 million tonnes in the last financial year. The country also exports nearly 61.5 million tonnes of petroleum products annually, indicating no supply gap.

Congress leader Rahul Gandhi on Monday (May 25, 2026) launched a scathing attack on Prime Minister Narendra Modi over the latest fuel hike, saying ‘mehangai manav’ has struck again, and he has just one job of making promises during elections and attacking people’s pockets at other times.

Petrol and diesel prices were raised by ₹2.61-2.71 per litre on Monday (May 25, 2026), marking the fourth increase in less than two weeks as state-owned fuel retailers continued to pass on rising international oil prices to consumers.

“’Mehangai manav’ Modi strikes again. He raises petrol and diesel prices in instalments — ensuring that your pockets are quietly picked, bit by bit,” Mr. Gandhi said in his post in Hindi on X.

“For months, I had been warning of an impending economic storm. But Modi Ji, true to form, was busy with elections at the time and the moment the elections ended, he hiked the prices of petrol and diesel by ₹8,” the Leader of Opposition in the Lok Sabha said.

And, this upward trend will only continue, he added.

“‘Mehangai manav’ Modi has just one job: promises during elections, and attacking people’s pockets at other times,” Mr. Gandhi said.

With the latest revision, cumulative increases in petrol and diesel prices have nearly touched ₹7.5 per litre since fuel price revisions resumed on May 15 after a prolonged freeze, stoking concerns over inflationary pressures and higher transportation costs across the economy.

The latest revision pushed petrol prices higher by ₹2.61 per litre and diesel by ₹2.71, according to industry sources.

Petrol prices were raised to ₹102.12 a litre in Delhi from ₹99.51 previously, while diesel rates were increased to ₹95.20 per litre from ₹92.49.

The back-to-back increases follow a prolonged freeze in retail fuel prices and come amid elevated crude oil prices in the global market, tightening refining margins, and a weaker rupee, which have sharply raised the cost of imports.

Petrol and diesel prices were increased on May 15 by ₹3 per litre each, and on May 19 by 90 paise a litre. This was followed by an 87-paise per litre increase in petrol and a 91-paise hike in diesel rates on May 23.

After Monday’s (May 25, 2026) increase, petrol at PSU pumps in Mumbai now costs ₹111.21 per litre and diesel ₹97.83, while prices in Kolkata rose to ₹113.51 and ₹99.82, respectively. In Chennai, petrol is priced at ₹107.77 and diesel at ₹99.55.

Prices vary across states due to local taxes.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) together control 90 per cent of India’s fuel market.

The back-to-back increases come after global crude oil prices surged more than 50% since late February following U.S.-Israeli strikes on Iran and disruptions to shipments through the Strait of Hormuz, a critical global oil transit route.

Fuel retailers had in the first two-and-half-months of the conflict kept pump prices low despite rising input costs, a move the government said was aimed at shielding consumers from inflation. Opposition parties, however, accused the government of delaying price revisions until after key state elections.

The May 15 increase came after the ruling Bharatiya Janata Party (BJP) expanded its electoral footprint by winning three of five state and UT elections, including West Bengal.

Petrol and diesel prices were increased by 90 paise per litre on Tuesday (May 19, 2026), the second increase in less than a week.

Petrol price was hiked to ₹98.64 a litre from ₹97.77 per litre in the national capital. Diesel now costs ₹91.58 a litre against ₹90.67 previously, according to industry sources.

This is the second increase in rates in less than a week. Prices were hiked by ₹3 a litre on May 15.

In Delhi, petrol now retails at ₹98.64 per litre, up by 87 paise, while diesel is priced at ₹91.58 per litre, higher by 91 paise.

Mumbai saw petrol rise by 91 paise to ₹107.59 per litre and diesel by 94 paise to ₹94.08 per litre.

Kolkata recorded the steepest hike in petrol at 96 paise to ₹109.70 per litre, while diesel prices rose by 94 paise to ₹96.07 per litre.

In Chennai, petrol prices rose by 82 paise to ₹104.49 per litre, and diesel by 86 paise to ₹96.11 per litre.

Petrol and diesel prices were increased by 90 paise per litre on Tuesday (May 19, 2026), the second increase in less than a week.

Petrol price was hiked to ₹98.64 a litre from ₹97.77 per litre in the national capital. Diesel now costs ₹91.58 a litre against ₹90.67 previously, according to industry sources.

This is the second increase in rates in less than a week. Prices were hiked by ₹3 a litre on May 15.

In Delhi, petrol now retails at ₹98.64 per litre, up by 87 paise, while diesel is priced at ₹91.58 per litre, higher by 91 paise.

Mumbai saw petrol rise by 91 paise to ₹107.59 per litre and diesel by 94 paise to ₹94.08 per litre.

Kolkata recorded the steepest hike in petrol at 96 paise to ₹109.70 per litre, while diesel prices rose by 94 paise to ₹96.07 per litre.

In Chennai, petrol prices rose by 82 paise to ₹104.49 per litre, and diesel by 86 paise to ₹96.11 per litre.

Petrol and diesel prices on Friday (May 15, 2026) were hiked by ₹3 per litre each as oil companies passed on part of the spike in global energy prices to consumers.

Petrol in Delhi will now cost ₹97.77 a litre, while diesel will be priced at ₹99.67.

The retail selling price of petrol in Mumbai, Kolkata, and Chennai will now be ₹106.68, ₹108.74, and ₹103.67 respectively.

Diesel, on the other hand, will now cost ₹93.14 in Mumbai, ₹95.13 in Kolkata, and ₹95.25 in Chennai.