In a move set to increase transportation and household expenses across the country, the Centre on Friday announced a hike of Rs 3 per litre in petrol and diesel prices, while compressed natural gas (CNG) rates in Delhi were also revised upward.
The fresh revision comes amid rising global crude oil prices and pressure on oil marketing companies over mounting input costs. The new fuel prices took effect from midnight, triggering immediate reactions from commuters, transport operators and Opposition parties.
According to revised rates issued by state-run fuel retailers, petrol and diesel prices in Delhi have gone up uniformly by Rs 3 per litre. CNG prices in the national capital have also been increased, adding further burden on daily commuters and commercial vehicle operators who had shifted to cleaner fuel alternatives in recent years.
With the latest revision, petrol in Delhi now costs significantly higher than previous levels, while diesel prices have also crossed key psychological marks in several metro cities. Similar increases are expected across states, depending on local taxes and VAT structures.
Officials said the decision was influenced by fluctuations in the international energy market, including supply concerns in major oil-producing regions and volatility in crude prices over the past few weeks. Industry sources indicated that public sector oil companies had been absorbing losses for some time and sought a correction in retail fuel prices.
The increase in CNG prices is likely to hit auto-rickshaw drivers, cab operators and public transport systems that depend heavily on gas-based fuel. Residents in Delhi-NCR may also see a rise in fares for app-based taxis and goods transportation in the coming days.
Transport associations expressed concern over the impact of the hike, warning that rising fuel expenses could eventually lead to increased prices of essential commodities. Truck operators said diesel remains the backbone of freight movement in India and any major revision directly affects supply chain costs.
“This will affect everything from vegetables to construction materials,” a Delhi-based transporter said. “Freight charges may have to be revised if prices remain high.”
Commuters at fuel stations across Delhi reacted sharply after the announcement. Many vehicle owners were seen queuing up late Thursday night to refill tanks before the revised prices came into force.
Opposition parties criticised the government over the timing of the hike, accusing it of adding pressure on middle-class families already dealing with inflationary trends. Several leaders demanded a rollback, arguing that international crude prices alone cannot justify the steep increase.
The government, however, defended the decision, stating that fuel pricing remains linked to global market conditions and economic realities. Officials also pointed out that India imports a major share of its crude oil requirement, making domestic pricing vulnerable to external developments.
Economists said the hike could have a broader inflationary impact if transportation costs continue to rise. Higher fuel prices often translate into increased logistics expenses, which eventually affect retail prices of food items and consumer goods.
Analysts are also watching whether state governments choose to reduce VAT on fuel to soften the impact on consumers. In the past, some states had announced temporary tax relief following sharp increases in global crude prices.
Meanwhile, oil companies indicated that future revisions would depend on international crude trends, currency fluctuations and overall market stability.
The latest fuel price increase is expected to remain a major political and economic issue in the coming weeks, particularly as households and businesses adjust to rising daily expenses.
About the Author
