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EconomyThe Hindu26 May 2026
Petrol, diesel prices hiked for fourth time in ten days; latest by about ā¹2.8 per litre
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š Summary:
- Petrol and diesel prices were raised by ā¹2.7 to ā¹2.8 per litre across India on May 25, 2026 ā the fourth hike in 10 days; pump prices are now up about ā¹7.5 per litre since May 15
- Petrol in Delhi crossed the ā¹100 mark, reaching ā¹102.12 ā a level last seen four years ago in May 2022 during the Russia-Ukraine conflict; diesel in Delhi rose to ā¹95.20
- City prices (May 25): Mumbai petrol ā¹111.21 / diesel ā¹97.83; Kolkata petrol ā¹113.51 (highest) / diesel ā¹99.82; Chennai petrol ā¹107.77 / diesel ā¹99.55
- Oil-marketing companies (OMCs) were incurring losses of just under ā¹600 crore per day on LPG, petrol and diesel combined after the latest hike, down from ā¹750 crore per day after the May 15 hike
- The Centre had cut central excise duty on petrol and diesel by ā¹10 per litre in late March to control retail prices ā an estimated revenue hit of over ā¹1 lakh crore in 2026
- OMCs absorbed high crude oil prices for about three months amid the West Asia conflict before passing them on from May 15; India's crude oil basket averaged $107.84 per barrel for the month till May 25
- Relief signal: benchmark Brent crude (July futures) fell 6.1% to $97.23 per barrel ā back below $100 ā amid reports of an Iran-US peace deal
šÆ UPSC Relevance: GS3 Economy ā energy pricing, the transmission of global crude prices and West Asian geopolitics into domestic inflation, the fiscal trade-offs of excise duty cuts, and the finances of public-sector oil companies.
š Prelims Facts:
- Petrol in Delhi crossed ā¹100 per litre ā last above ā¹100 in May 2022
- The Centre cut excise duty on petrol and diesel by ā¹10 per litre in late March 2026; estimated revenue impact over ā¹1 lakh crore
- India's crude oil basket averaged $107.84 per barrel for May (till May 25); Brent crude later fell to $97.23 per barrel
- OMC losses stood at just under ā¹600 crore per day after the latest hike
š Key Term: Oil Marketing Companies (OMCs) ā public-sector firms such as IOC, BPCL and HPCL that refine and retail petroleum products and absorb or pass on crude-price changes through retail fuel prices.
fuel pricesexcise dutycrude oilOMCsinflation
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