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

"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.