India Raises Fuel Prices Again Amid Ongoing Energy Supply Pressure

India’s state-run fuel retailers have increased petrol and diesel prices for the second time within a week as rising global crude oil costs continue putting pressure on refining margins amid the prolonged Middle East conflict.

The latest revision raised retail fuel prices by around $0.0093 per litre, following last week’s larger increase — the country’s first fuel price hike in four years.

The repeated adjustments reflect the growing strain on India’s energy sector as disruptions linked to the Middle East crisis continue affecting crude oil availability and import costs.

Fuel prices in the wholesale market had already surged sharply in April, with gasoline and diesel recording steep month-on-month increases due to tightening supply conditions and higher crude prices.

India, which depends heavily on imported crude oil, has been facing rising pressure since disruptions in the Strait of Hormuz impacted a significant portion of its oil inflows. The situation has increased the country’s import bill, weakened the rupee against the US dollar, and triggered heavy foreign investor outflows.

The impact has also extended to broader economic conditions, with wholesale inflation rising sharply in April compared to March levels.

Meanwhile, the United States has again extended India’s waiver for Russian crude imports, acknowledging the difficult supply environment caused by ongoing geopolitical tensions in the Middle East.

To manage energy consumption, Indian authorities have also encouraged citizens to reduce unnecessary travel, use public transport, and adopt carpooling measures. According to the country’s oil ministry, India currently holds crude oil reserves sufficient for around 69 days, along with LPG inventories covering approximately 45 days of demand.

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