Petrol Diesel Price | Global Crude Surge, Local Impact: Fuel Price Hike Triggers Inflation Fears

Added: 2026-05-15

[00:00:00]Days after Prime Minister Narendra Modi's call to reduce petrol and diesel consumption and use public transport, the center has hiked petrol and diesel prices by 3 rupees per liter. A development that was long anticipated.

[00:00:12]The patrol will now cost uh rupees 97.77 per liter in the national capital, 108.74 per liter in Kolkata, 106.68 per liter in Mumbai and 103.67 per liter in Chennai. Diesel will now be sold at 90.67 67 per liter in Delhi and 95.13 per liter in Kolkata, 93.14 per liter in Mumbai and 95.25 per liter in Chennai.

[00:00:37]As for sources, India is facing a severe global oil shock but is still shielding citizens instead of passing on the full burden to the consumer. Sources claim oil marketing companies and government are together absorbing nearly,000 cr rupees in losses every day. While patrol under recovery stands at 26 rupees per liter and diesel under recovery is close to about 82 rupees per liter. Shimmyi brings us this report.

[00:01:10]See the government's message Rammit the global oil uh crisis is becoming increasingly clear. It does not want consumer to bear the full burden of rising crude prices through steep fuel price hike and that is quite reflected in today's move. And according to top government sources while marketing companies along with the center are currently absorbing losses of nearly,000 cr every day to keep petrol and diesel prices stable despite the surge in global crude prices. Now under recoveries are estimated around 26 per liter on petrol and nearly 82 per liter on diesel. official argue that the alternative would be far more painful since fuel demand in India remains largely priced and elastic consumer would need uh you know petrol and diesel even if price rises sharply. Internal estimates suggest that the fully passing on the global shock could require fuel price hike of as much as 200 to 300% and that's huge. Now sources says that government believe that any knee-jerk move would hurt the bottom of the pyramid the most. Instead the focus is on reducing fuel consumption volume rather than sharply increasing the prices. Official described the current situation as a massive twin drain with crude import costing 12 to 15 lakh cr annually while gold import have surged to 6 lakh cr. Sources also says that the government is framing the current situation as an external geopolitical shock linked to the Iran conflict rather than any sort of domestic economic failure. Now this also explains clearly the PM PM repeated calls for restraint in fuel consumption, foreign travel, gold purchases etc. with sources described as highly targeted and uh pragmatic steps to sort of reduce the dollar odd flows with minimal economic disruptions.

[00:02:56]Let's now bring you some ground reports from fuel stations across the country where our reporters have been speaking to people who are there to get their tanks fueled up.

[00:03:08]Delhi residents have woken up to the price rise of fuel. Today we are showing you the visuals from Pragati Madan petrol station uh which is considered to be one of the busiest petrol stations in Delhi. We are showing you the visuals of the current petrol prices in the capital that has been that have gone up by rupees 3.14 per liter and are now selling at rupees 97.77 per liter.

[00:03:31]Diesel has become costlier by rupees 3.11 per liter taking the price to rupees 90.67 per liter now after remaining unchanged for nearly four years. This price rise can be seen today that has sparked concern among daily commuters, cab drivers and daily workers who are saying rising fuel cost will directly affect their monthly expenses.

[00:04:10]fuel price in Chennai is up by 3 rupees just like any other part of the country and in Chennai the petrol price is now 103.67 a liter in the case of the diesel it's 95.253 253 rupees hike and uh many were expecting this.

[00:04:29]They were hoping that uh the government would increase the price after the election results since the West Asia war crisis has triggered a disruption in terms of movement of uh oil 3 rupees per liter hike. How do you look at this >> sir? We don't have a choice but we need to be careful and uh sail with it.

[00:04:52]That's it. Would you reduce using your car now or would you >> of course we do a lot of in fact our office also we discussing you do car pool in the state in the same complex you're getting there so that's what we need to do we as citizens we need to abide by this and go ahead that's it >> lastly was this waiting to happen because of the west Asia war and the elections >> as everybody knows that's the main reason >> amid frustration prices there has been hike in oil and teaser price that's definitely going to make an impact on day-to-day life of a common Man situation right from Jammu to Jaipur Kashmir to Kanyakumari Sikandra Aabad to Siliguri going to remain same because everybody here feel that this is going to put a hole in their pocket. Let me talk to the people here at Jump Patrol and try to find out what they really feel.

[00:05:38]How really it's going to make things difficult.

[00:05:54]Oil in prices of petrol and diesel has already affected the life of a common man and we are reporting from one of the petrol pump at this point of time. We are going to talk to some of the people to just take their reaction.

[00:06:55]maybe I'm not sure fuel prices in Telangana has also affecting common citizen and common commuter daily who is heading to to their offices and their duties in Hyderabad. If we talk about today's fuel price is 110 rupees 88 pesa per liter and you can see behind me how people are at in large number they are they are coming to the petrol banks and they are getting uh their uh vehicles filled with petrol largely the petrol prices are higher in Hyderabad in Telangana as well as in Andhra Pradesh Vijawara because of excess w collection by the state Definitely it will impact resources are limited. What we get is limited when inflation goes up, rates go up, it definitely affects our total uh lifestyle budget.

[00:07:59]Prices across India have gone up sharply with petrol and diesel prices rising up to rupees 3 per liter adding additional burden on transport sectors as well as commuters. At present we are you're at a petrol pump and like you see behind me people are coming and filling up petrol or diesel Diesel electric.

[00:09:35]There's nothing we can do or say about it. Live with it.

[00:09:39]>> So you say there's no option but you just live with it.

[00:09:42]>> Yes. Just live with it.

[00:09:44]>> All right. No problem saying anything.

[00:09:46]>> But do you do you wish and hope that it does not hike more uh in the future?

[00:09:51]I think the government should realize that they can't keep hiking everything up because with the hike in petrol prices everything else is also going to go up.

[00:10:00]>> So the middle class of the people are going to suffer.

[00:10:03]>> Now fuel prices have been hiked and the ripple effects are expected across the economy. But first let's just take you through some of the countries that have seen uh a fuel hike before India itself.

[00:10:16]Let's start with Pakistan which saw a 61% hike. The US saw 46% high, Canada 34, South Africa 33, China 25, UK 19%, Japan at 10, Indonesia at 7, Brazil at six, India the lowest compared to all these countries who had hiked their fuel prices earlier due to uh the Middle East conflict and India stands at 3.3%.

[00:10:44]All right. Now, let's just take you through uh the diesel prices as well.

[00:10:48]When it comes to the different countries, Indonesia at 91%, South Africa 64, Pakistan 50% hike is what it saw. You have US at 48, UK at 33, Canada at 32, China at 28. Again, just go down that bar graph and you see India's has been the lowest. And that's exactly what government sources have also been telling NDTV that when it comes to the uh fuel price hike, we waited. Now it's gone ahead. We've hiked it, but it's a minimal impact compared to the other countries in terms of fuel and diesel.

[00:11:22]I'm going to get Ashwaria live on our big story as well. Ashwaryia, let's just talk about the government stand when it comes uh to the price hike. This is something that was expected especially after you had Prime Minister Narendra Modi come out and talk about austerity measures. It was just the question of when and not that this would not happen.

[00:11:44]Just the question of when really. But what has the government's defense been to the opposition's offensive on the price hike?

[00:11:56]Well, on one side amid the geopolitical shock on the oil prices, uh it is of course the zero uh control uh of India on the uh prices of international uh crude oil. But perhaps in India the situation is very different. If you compare uh the uh country uh to the world then certainly India has been impacted minimal and that's because of the efforts that have been made by the government so far. uh Indian government is trying to shield its citizen for at least 76 days and therefore no uh uh you know price hike had been uh seen in in the last 76 days. In fact the government and the OMC's had been facing uh losses of at least 1,000 crores per day. Uh it's also uh you know the excise rates which have been cut on the petrol and diesel perhaps petrol for eight and diesel for 6 rupees per liter. It is also the government of India which has stated that the petrol under recovery rate stands for 26 rupees per liter and diesel for rupees 82 rupees per liter and certainly it is government of India which is trying not to pass on the burden to the commonwary I will have to interrupt you there union minister speaking let's cut member of parliament Foreign contribution vidi hospitality kiran ri now let's also talk about the price pinch We can take you through some of that on this uh graphics that we have for you. Uh what is it going to even impact in terms of uh transport costs that are going to rise of course given that you have a fuel price strike happen hike happening you have food prices that may go up of course I mean you need transport to get that food to the retail shops as well. So the supply chain being impacted because of this fuel price hike as well. vegetables, milk to get costlier for the same reason that I have just mentioned. Then you have bus, taxi and autofairs also that could increase given this fuel price hike which you will have uh these people passing on to the consumers as well. Now online delivery charges may rise as well since they are bearing the impact of diesel and fuel costs but remember most of them also have electric vehicles that they travel on. FS could turn costier. This is something we have been talking about for the last 3 weeks here on NDTV as well. Logistics and freight costs to jump as well for the given reasons. So there is going to be this cascading effect that you're going to see when it comes to logistics and freight costs and uh they're projected to jump adding to inflationary pressures. Manufacturing units will face high input costs pushing up prices of essential goods. Even the agriculture sector is expected to feel the heat as rising fuel costs impact farming as well as distribution.

[00:15:13]Eshwaria joining me once again. Eshwaria that is the concern. This is not only limited to a fuel price hike but can impact the arm admi in several ways in the weeks to come.

[00:15:30]but could could impact uh farmers of the country and uh also the common uh man the inflation can go up as well but the government has try to make all efforts possible not to push this burden and we speak about the farmers and certainly rs 22,500 cr subsidy has been given chemical fertilizer bag of rups 2,500 is just being sold a mere of 282 to the farmers and that's the kind of substit that the government is giving and certainly and the the prime minister has appealed to the public to consume less as far as the oil and uh petrol is concerned. It's the twin uh uh you know drilling as far as uh drain movement as far as the oil and gold is concerned. We have no control over the international crude prices to be controlled. In fact the state of Hormos that have stopped most of the you know ships and vessels which contains oils to the country that have been stopped and therefore the reason perhaps uh India is at the lowest three just 3.2%age 2 percentage of the petrol and diesel hike as part as compared to the world which has seen more than 50 60% of the hike and it is of course on one side uh the government clearly controlling and and on and taking the burden on themselves and try to stabilizing the entire situation uh you know the uh the outside world clearly has been seen a dramatic situation as far as the prices are concerned. So yes, the top government sources have indicated to us that this will you know be a regular phenomenon because the government is trying to make all efforts possible. Uh the Congress and the other political parties clearly slamming the government over here stating that this is the first installment of the recovery that they they are trying to make but in the future more such installments will be coming more such push in the price hike will come and definitely slamming the government over it. But it is the government sources clearly revealing that there would be no much impact. The government will try to uh contain and will not to and will try to stabilize the prices of oil and diesel as much as possible.

[00:17:42]>> All right, thanks for joining us live since this morning on this story that impacts everybody in the country. The defense by the government is that we held off for as long as we could. And if you look at the comparisons uh when it comes to the fuel price hike with other countries, ours is still the lowest. The opposition hitting back questioning the timing of this fuel price rise. Now the price cr. Let's come to the price pinch.

[00:18:06]Now let's start with milk. Amul mother dairy hike prices by about 2 rupees per liter. Input and procurement costs have been cited as the reason for the hike that you're seeing. And this is something that is consumed in huge volumes across the country. Now petrol is up by 3 liters, diesel is up by 3 liters. This is the first major revision since the year 2022.

[00:18:30]CNG in Delhi NCR the price goes up by 2 rupees per kg. In Mumbai it's 2 rupees per kg. In terms of the hike as well global gas supply concerns have been cited. commercial LPG uh 19 kilo cylinder has been hiked by 993 rupees which is almost 1,000 rupees. The Delhi commercial LPG now is above 3,000 rupees. That of course impacts hotels and restaurants. But the domestic LPG is something that the government has been trying to insulate from price rises.

[00:19:04]Let's listen into what the petroleum minister had said yesterday when he highlighted the losses to the oil companies. He also rules out some statistics.

[00:19:15]>> If you look at the fiscal situation, if you look at the fact that my oil companies are losing what 1,000 crores every day, that the under recovery is going to be what 198,000 crores 2 lakh crores nearly.

[00:19:33]The losses are what 1 lakh cr if you look at the quarter. In that context, how long can you keep it like this?

[00:19:43]Where is the oil? It used to be at around $64 or $65. I have my statistics here. Gone up to $15 in that basket.

[00:19:52]>> Kota Mahindra Bank found a few days ago also warned that the big shock is coming and we as a nation should be prepared.

[00:20:02]We should prepare for paranoia before the event or and we must hope that tough times do not come or remain but we must prepare for the worst. The consumers have not felt the pressure at all. And think about a consumer with limited income having to spend more directly on fuel and indirectly on other items for fuel or dependent on fuel. It's the shock is coming. We had old inventory.

[00:20:31]We had the ability for oil companies to take the be the shock absorber.

[00:20:38]And it's a large amount of money.

[00:20:40]Therefore, I don't think you're very far away from the shock.

[00:20:44]>> Ever since the announcement, a fresh political showdown has erupted over the fuel price hike with the opposition launching a sharp attack on the center.

[00:20:51]Rahul Gandhi has slammed the government for fuel price hikes and said that people are paying the price for the government's mistake. Not just the Congress, but all opposition leaders are questioning the timing of the hike, alleging that the government deliberately waited for the election results before increasing petrol and diesel prices. You have the BJP defending that claim, stating that if the government had to increase uh the fuel prices, they would have done it a day or two after the election results, but this is coming more than 10 days after the result was announced. PJP's hit back at the opposition, calling them opportunists. BJP said that the rise is due to the global oil crisis and hike and India is very minimal in comparison to the other countries. We just brought you that graphics to show the difference in the fuel price hike percentages.

[00:21:38]>> We are discussing the impact of the increase in the petroleum uh products price of the petroleum products are discussing um and we are assessing the impact on the public then we will check then we will take a decision on that.

[00:21:55]Mr. Modi has failed in the international relationship. He could not manage well.

[00:22:01]He could not help. That is why like co what he said ring the bell, lip the damp, lip the damp lamp and all he's just giving. It is not possible how to consume oil in my house. How can I stop it? How can I stop vehicle? You ask all the central minister today may he may reduce his uh security with two vehicles. Okay, fine. Let all others do in the entire country. No one should travel outside. How can it be there?

[00:22:32]>> Mr. Modi is saying that everything is fine. Is this the achadin that they promised?

[00:22:39]And why is the government not telling people the problem? The prime minister should come out in the open, speak to public, speak in parliament on the real situation of the crisis that we are going to face.

[00:23:22]Diesel, LPG gas, commercial LPG cylinder.

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[00:24:07]Solar excel.

[00:24:28]BJP 2014.

[00:24:55]2014. Compare 2014.

[00:25:27]after the announcement made by the prime minister in Telangana.

[00:25:31]Um it was very clear that um all prices, oil prices, LPG are going to be hiked and we were expecting the same and now no more elections in this year. All the five sales elections are over. Now hereafter no elections to till next elections announcement of the next elections we can expect these kind of announcements. merciless governments without any idea to control handle the economy.

[00:26:06]>> The government had to wait for the election results. It been more than 10 days since the elections have passed.

[00:26:12]Please note that nobody expected this crisis to last for more than 2 months.

[00:26:16]It is because of the macroeconomic stability and the measures that the government took that the Indian common man suffered the least. In fact, experienced zero price hike in the price of petrol and diesel. And even right now where there's a 55%age increase in Pakistan, 45% United States of America, 52% in UAE. Well, everywhere any any situation has an inflection point and as you and I everybody's aware that nobody knows when this crisis will end. So in a such a scenario, it is but natural that the government will take contingency measures.

[00:26:48]>> All right. So the latest there is that there has been a fuel price hike and it's been up by 3 rupees when it comes to petrol and diesel. Of course uh the prices vary in the different metropolitans but you have uh the armadi stating that some of them were expecting it some of them expressing frustration over this and some even asking the government to ensure that there is no further fuel price hike. Now this comes at a time when the government itself has been stating through its top sources even through its minister Kiran Reijiu that they held off for as long as they could. But when you look at the fuel price hike that has happened it is really marginal compared to what other countries have faced be it Indonesia be it Pakistan be it the United States of America. The opposition on the other hand, a quick recap there as well, stating that why is this happening after the election results were announced.

[00:27:44]Now, of course, the reason for this price hike goes back to the Iran conflict and that remains the biggest reason for what we're seeing. There's going to be a cascading effect once you have this fuel price hike that has happened. What will happen next is food supplies and agricultural supplies also being hit. The impact is going to be that of a cascading