Petrol Crosses ₹100 in Delhi — 4th Fuel Price Hike in 12 Days: Iran War, Strait of Hormuz & What It Means for You

The number that Delhi’s commuters dreaded is here. Petrol has crossed ₹100 per litre in the national capital for the first time in this cycle — and it happened in just 12 days. Here is exactly what happened, why it is happening, how much it has gone up, and whether more hikes are coming.

TODAY’S PRICES — May 25, 2026

Petrol and diesel prices were hiked again on Monday, marking the fourth fuel price increase in just 11 days amid the ongoing Iran war and rising global crude oil uncertainty. With the latest revision, petrol prices in Delhi have crossed the ₹100-per-litre mark. Petrol became costlier by ₹2.61 per litre, while diesel prices were increased by ₹2.71 per litre. Following the hike, petrol in Delhi now costs ₹102.12 per litre, while diesel is priced at ₹95.20 per litre.

Prices vary by state due to local VAT and taxes. Delhi has among the lowest fuel taxes among major Indian cities — which is why it crossed ₹100 last, while Mumbai and Kolkata crossed it earlier in the hike cycle.

The Complete Hike Timeline — 12 Days, 4 Revisions, ₹7.5 Cumulative

Petrol and diesel prices were increased on May 15 by Rs 3 per litre each, and on May 19 by 90 paise a litre. This was followed by an 87-paise per litre increase in petrol and a 91-paise hike in diesel rates on May 23. Then today:

With the latest revision, cumulative increases in petrol and diesel prices have nearly touched Rs 7.5 per litre since fuel price revisions resumed on May 15 after a prolonged freeze, stoking concerns over inflationary pressures and higher transportation costs across the economy.

The Bigger Context — First Sustained Hike in 4 Years

Fuel prices in India had been stable since April 2022, with the government even cutting prices by ₹2 per litre ahead of the 2024 Lok Sabha elections. The current sequence of hikes is the first sustained fuel price increase in four years, and the pace — four revisions in 12 days — is unprecedented in recent memory.

Four years of stable prices. Then 4 hikes in 12 days.

For context, a Delhi commuter who filled a full 45-litre petrol tank on May 14 paid approximately ₹4,265. Today, that same fill costs ₹4,595 — ₹330 more. In 12 days.

Why Is This Happening? — The Iran War Explained

The back-to-back increases come after global crude oil prices surged more than 50 per cent since late February following US-Israeli strikes on Iran and disruptions to shipments through the Strait of Hormuz, a critical global oil transit route.

What Is the Strait of Hormuz?

The recent fuel price increases have largely been linked to disruptions caused by the ongoing Iran conflict, which began on February 28. Tensions around the Strait of Hormuz — one of the world’s most critical oil shipping routes — have significantly impacted global oil supply chains and crude prices over the past two months.

The Strait of Hormuz is a narrow waterway between Iran and Oman — approximately 33 km wide at its narrowest point. Roughly 20% of the world’s total oil supply passes through it every day. When Iran disrupts or threatens this route, global oil markets react immediately and dramatically.

Why Did India Hold Prices for So Long?

When the Iran conflict first erupted in late February, India did not immediately pass on rising crude costs to consumers. The government used a combination of tools to absorb the shock:

• Excise duty reductions on petrol and diesel
• Strategic petroleum reserves
• Diversification to non-Middle East crude suppliers

But there are limits to how long any government can shield consumers when crude prices rise 50%+ and show no sign of easing.

The OMC Breaking Point

India’s state-run oil marketing companies, Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL), had reportedly continued selling fuel at older prices despite rising crude procurement costs. However, mounting losses eventually forced a price revision. According to estimates, the three public sector oil companies were collectively losing more than ₹1,000 crore per day due to the widening gap between retail fuel prices and global crude costs.

₹1,000 crore per day in combined losses. That is not a sustainable situation for any set of companies — even state-backed ones. The May 15 hike was the inevitable pressure-valve release.

What Does This Mean for Delhi Families? — The Ripple Effect

Today’s ₹2.61 hike on petrol and ₹2.71 on diesel is not just about your fuel bill.

The latest hike will add pressure on households already dealing with inflation. The increase in the price of diesel will increase the cost of logistics, thereby, impacting the cost of daily essential items. Milk and bread are already selling at a higher price due to previous hikes in fuel prices.

The transmission works through the economy in three layers:

Layer 1 — Direct (Immediate):

• Your petrol and CNG vehicle fill costs more
• Auto and cab fares will rise as drivers face higher costs
• Two-wheeler commuters face the highest per-km pain

Layer 2 — Logistics (Within Days):

• Diesel is the fuel that moves India’s trucks
• Every ₹1 rise in diesel increases the freight cost of goods
• Vegetables, fruits, groceries, medicines all become costlier

Layer 3 — Broad Inflation (Within Weeks):

• Food inflation accelerates as supply chain costs rise
• Manufacturing input costs rise (power generation, transport)
• Services inflation follows as businesses pass on higher costs

The Irony — Crude Fell Today as India Raised Prices

Ironically, the latest increase in fuel prices comes on the day when Brent Crude fell over 5 per cent to slip below the mark of $100 per barrel for the first time this month.

This apparent contradiction has a logical explanation: Indian OMCs price fuel based on a 15-day rolling average of international crude prices, not on today’s spot price. The 15-day average still reflects the elevated crude prices from earlier in the month — when Brent was well above $100 and the Strait of Hormuz fears were at peak intensity.

If crude stabilises or continues to fall, the 15-day rolling average will eventually catch up — and future hikes may slow or even stop. But that is not guaranteed.

The Numbers India Cannot Ignore

Will Prices Rise Further? — What Experts Say

The answer depends on three variables moving simultaneously:

1. Iran-US War Trajectory If the conflict escalates further or extends to direct blockade of the Strait of Hormuz, crude could spike again. If a ceasefire or diplomatic resolution emerges, crude could correct sharply.

2. Global Crude Prices Today’s 5% fall in Brent suggests markets may be pricing in some de-escalation. If this continues, the 15-day average will soften and OMC loss pressure will ease.

3. Monsoon and Political Calendar With India entering monsoon season and no major state elections immediately on the horizon, the government has political room to allow further hikes if crude stays elevated. Historically, fuel hikes are paused before major state elections.

The consensus among analysts: the combination of the Iran war supply shock, a rupee at record lows amplifying import costs, and OMC balance sheets under severe pressure has forced the government’s hand in ways that purely domestic political calculus would not have permitted.