Despite a dramatic global jump brought on by geopolitical upheavals, India has emerged as one of the least affected countries in terms of retail gasoline price rise, according to government sources. This month, the price of petrol and diesel increased gradually by slightly more than Rs 7 per litre.
Oil marketing corporations (OMCs) changed fuel prices in four installments on May 15, 19, 23, and 25 after keeping them unchanged for 78 days after the Strait of Hormuz closed on February 28, 2026. The total increase is almost 7.5%, with petrol and diesel costing Rs 7.35 and Rs 7.53 per litre, respectively. Diesel is currently priced at Rs 95.20 a litre in Delhi, while petrol costs Rs 102.12.

This rise remains much modest compared to worldwide trends. During the same time span, other nations have seen sharp increases ranging from 20% to more than 90%. For example, petrol prices increased by more than 50% in Pakistan and the United Arab Emirates, nearly 90% in Myanmar, and more than 20% in industrialised economies like the United States and Europe.
The average price of petrol is currently about Rs 130 per litre worldwide, with some European nations seeing costs as high as Rs 180. India, on the other hand, continues to have some of the lowest prices among non-subsidized economies.Government action is a major contributing element to the comparatively mild increase.

However, because to variations in value-added tax (VAT), retail prices range significantly between states. Government sources claim that while BJP-governed states like Gujarat, Uttar Pradesh, and Haryana still have fuel costs closer to Rs 102 per litre, opposition-ruled states like Telangana and Kerala currently have some of the highest fuel prices, surpassing Rs 114 per litre.
Diesel, an essential fuel for agriculture and transportation, exhibits an even more pronounced disparity. While high-tax states report prices over Rs 100 per litre, lower VAT regimes in some states have kept diesel prices below Rs 90.

To guarantee local gasoline availability and stability, the government also implemented fiscal measures like lowering special supplementary excise duties and enforcing export levies. Despite these efforts, throughout the crisis, the exchequer and oil firms both had to endure losses.
Interestingly, India is one of the few large economies to have maintained stability throughout most of the current crisis and to have lowered fuel costs during previous global shocks, such as the conflict between Russia and Ukraine.