India’s state-owned fuel retailers raised diesel by 2.71 rupees a litre and petrol by 2.61 rupees on Monday, dealers said — the fourth increase in May as the companies try to recoup losses from elevated crude costs driven by the Iran war.
A litre of petrol in New Delhi will now cost 102.12 rupees, while diesel rises to 95.20 rupees. The three state refiners — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum, which together control about 90% of the market — began lifting pump prices on May 15 once elections in several key states had concluded. Across the four rounds since then, diesel has climbed roughly 8.6% and petrol about 7.8%.
Rising crude prices and supply disruptions following the closure of the Strait of Hormuz have hit India, the world’s third-largest oil importer and consumer. New Delhi has also introduced austerity measures to curb fuel consumption and contain its import bill as policymakers brace for a prolonged energy shock.
Indian Oil said its retail diesel sales rose 18% year-on-year over May 1–22, with petrol up 14%, as some bulk customers switched to cheaper retail pumps — a shift that has triggered shortages in some areas. Pump prices vary across states due to local taxes.
The revisions matter for Sri Lanka, where India has been a key fuel supplier through the Hormuz crisis. The latest move follows the third hike on May 23 and comes as Sri Lanka’s own oil import bill rose to US$521 million in May, more than three times its December 2025 level, according to Deputy Finance Minister Anil Jayantha.
