Middle East tensions impact crude prices
The ongoing Iran conflict and uncertainty over US-Iran talks continue to affect global oil markets
Petrol and diesel prices were increased again on Saturday, marking the third fuel price hike this month amid escalating tensions in the Middle East and volatility in global crude oil markets.
Petrol prices have been raised by 87 paise per litre, while diesel prices have gone up by 91 paise per litre across the country. The latest revision comes just days after fuel prices were increased by around 90 paise per litre earlier this week.
Earlier this month, oil marketing companies had already announced a steep hike of nearly Rs 3 per litre, ending a prolonged period of relative stability in domestic fuel prices.
The back-to-back increases come against the backdrop of continued uncertainty in the Middle East, particularly due to the ongoing Iran conflict and instability surrounding US-Iran peace negotiations.
Global crude oil prices have remained highly volatile in recent weeks. Brent crude futures climbed above USD 104 per barrel on Friday, while US West Texas Intermediate (WTI) crude traded near USD 97 per barrel.
At one stage earlier this month, crude prices had surged close to USD 111 per barrel, intensifying pressure on India’s public sector oil marketing companies (OMCs).
For several months, state-run fuel retailers had largely maintained petrol and diesel prices despite rising global crude costs. According to government estimates, OMCs were reportedly absorbing losses of nearly Rs 1,000 crore every month during this period.
However, with supply concerns persisting and global crude remaining elevated, oil companies have now started gradually passing on part of the burden to consumers through successive revisions.
The latest fuel price hike follows a 90-paise increase announced on May 19. Just days before that, on May 16, fuel prices were sharply raised by around Rs 3 per litre nationwide.
Meanwhile, Union Petroleum and Natural Gas Minister Hardeep Singh Puri had earlier said India had managed to maintain uninterrupted fuel supplies and stable pricing despite major global energy disruptions.
Addressing the CII Annual Business Summit 2026 earlier this month, Puri said India successfully handled global supply shocks through strong policy coordination and efficient energy management.
He noted that despite volatility in international crude prices, India ensured there were no shortages of petrol, diesel or LPG anywhere in the country.
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