Petrol, Diesel Price Hike LIVE Updates: Fuel price hike to have some impact on inflation, say sources

Kerala CM-designate V D Satheesan on Friday said that he was in discussions with officials on how to reduce the impact of the rise in fuel prices on the general public, while former chief minister Pinarayi Vijayan termed the hike by the Centre as a grave injustice to the people and demanded its withdrawal.

In a post on X, BJP IT cell head Amit Malviya said India recorded one of the lowest increases among major economies, with petrol prices rising by 3.2 per cent and diesel by 3.4 per cent.

Union Minister G Kishan Reddy on Friday said the fuel price hike was unavoidable due to the global energy crisis and urged people to understand the circumstances behind the increase. Responding to the fuel price hike by state-owned oil companies, he also alleged that opposition parties were trying to "provoke people."

Karnataka Chief Minister Siddaramaiah said on Friday that the Prime Minister Narendra Modi-led government at the Centre increased petrol and diesel prices as expected after the Assembly polls in four states and one union territory. Condemning the move, he demanded the withdrawal of the price hike, stating there was no need to raise the price now.

The BJP on Friday defended the hike in fuel prices, claiming that India managed to shield citizens from the global oil shock for more than two months while implementing only a "limited and calibrated" increase, even as several countries witnessed a steep price rise.

PMK leader and former union minister Anbumani Ramadoss on Friday demanded that the oil companies immediately withdraw the hike in petrol and diesel prices.

Hours after petrol and diesel prices were hiked, Samajwadi Party chief Akhilesh Yadav on Friday took a swipe at Prime Minister Narendra Modi's conserve fuel call, saying that the cycle - the SP's official election symbol - is the only alternative, seemingly emphasising that his party alone can offer the path of development.

Shiromani Akali Dal president Sukhbir Singh Badal said "the sharp increase of Rs 3 per litre in petrol and diesel prices, along with a Rs 2 hike in CNG prices, will deliver a crippling blow to the common man, who is already battling inflation and rising living costs".

Slamming the Centre, Punjab Congress president Amrinder Singh Raja Warring said, "The Modi government first lectures citizens to 'use less cars', then runs PR campaigns showing smaller PM convoys, and now quietly hikes petrol and diesel prices by Rs 3 per litre".

"So this was the real script behind the drama?" Warring said in a post on X.

"Farmers will pay more. Truck operators will pay more. Middle-class families will pay more. Every essential item will become expensive again. The truth is simple -- BJP doesn't reduce inflation, it manages headlines. 'Abki Baar, Petrol Rs 100 Paar'," Warring said in the post.

Punjab Finance Minister and senior AAP leader Harpal Singh Cheema said the move showed the ruling BJP's "anti-farmer and anti-people face".

AAP, Congress and SAD on Friday attacked the Centre over the petrol and diesel price hike, saying it will deliver a crippling blow to the common man and adversely impact farmers.

Terming the petrol and diesel price hike as Prime Minister Narendra Modi's "gift", Karnataka Deputy Chief Minister D K Shivakumar on Friday said the country has come to a "tragic situation."

"The modest hike in retail price of Rs. 3/litre for petrol and diesel provides limited relief to the oil marketing companies. ICRA estimates that at crude price of USD 105-110/barrel and considering past 10-year average crack spreads of auto fuels, oil marketing companies incur a loss of about Rs 500 crore daily on the sale of auto fuels and domestic LPG, even after factoring the fuel price hike. Accordingly, the oil marketing companies would need to relook at the retail prices in case elevated crude oil prices persist," said Prashant Vasisht, Senior Vice President and Co-Group Head, Corporate Ratings. ICRA Ltd. 

"The Rs 3 hike in petrol and diesel prices reflects the pressure of elevated global crude oil prices and rising import costs on the government’s fiscal position. While the increase may temporarily add to inflation concerns and impact transportation and consumption costs, it also indicates the government’s focus on managing fuel subsidies and protecting forex reserves amid ongoing global uncertainty. In the longer term, such moves may further accelerate the push towards EV adoption and reduced dependence on imported fuel," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

After state-run oil marketing companies (OMCs) increased petrol and diesel prices by Rs 3 per litre each, petrol price rose to Rs 107.99 per litre, and diesel price rose to Rs 93.26 per litre in Jaipur.

According to sources, the increase, however, will have some impact on inflation. India's retail inflation, measured by the Consumer Price Index (CPI), rose to 3.48 per cent in April 2026 from 3.40 per cent in March

Industry sources said the price hike appears calibrated enough to partially ease margin pressure on oil companies without creating major inflationary shock.

Petrol price was hiked to Rs 97.77 per litre from Rs 94.77 in Delhi. Diesel now costs Rs 90.67 per litre in the national capital, up from Rs 87.67 previously.