India raises fuel prices as Iran war drives global oil shock

India’s state-run fuel retailers have raised petrol and diesel prices for the first time in four years by 3 rupees per litre, or more than 3%, as global crude oil costs surged following disruptions to shipping routes linked to the war involving Iran.

The price hike comes as India, the world’s third-largest oil importer, seeks to recover losses after higher international oil prices strained its fuel retail system. The increase was implemented across more than 90% of the country’s 103,000 fuel stations operated by Indian Oil Corporation, Hindustan Petroleum, and Bharat Petroleum, News.Az reports, citing Reuters.

Diesel in New Delhi now costs 90.67 rupees per litre, while petrol is priced at 97.77 rupees. Global oil prices had previously spiked above $120 per barrel before easing to around $100–105, contributing to financial pressure on fuel distributors. State refiners have faced significant losses on retail sales due to the global price surge.

India has also introduced broader austerity measures to manage rising energy costs, including calls for fuel conservation, remote work policies, and reduced travel. Officials have warned that further price adjustments may follow as global energy markets remain unstable.

Economists say the increase is relatively small but could affect fuel demand growth, while analysts note that delayed price adjustments during recent elections may have contributed to earlier losses for state retailers.

News.Az 

By Leyla Şirinova