Apprehensions of Rising Inflation Following Hike in Petrol and Diesel Prices

15-May-2026 04:16 PM

**New Delhi.** India's state-owned oil marketing companies (OMCs)—Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum—have hiked the prices of diesel and petrol by ₹3 per liter, a move that will inevitably lead to an increase in transportation (freight) costs. Notably, the retail prices of petrol and diesel had remained stable for the past 49 months.

Following a surge in global market prices for crude oil (petroleum), an increase in petrol and diesel prices within India was considered inevitable. The Petroleum Minister had also dropped hints to this effect just a few days ago. The price of crude oil, which was hovering around $69 per barrel in February, has now surged to over $120 per barrel.

The ongoing crisis in West Asia and disruptions to shipping traffic through the Strait of Hormuz are hampering the supply of petrol. Furthermore, the sharp depreciation of the Rupee against the US Dollar has driven up import costs even further.

Compared to March, the inflation rate—measured by both the Wholesale Price Index (WPI) and the Retail Price Index (CPI)—was higher during April, and it is projected to rise further in May. Experts suggest that further hikes in diesel and petrol prices cannot be ruled out, which could cause the inflation graph to trend upward. As freight charges for transporting goods rise, the cost of all products will naturally increase; the vulnerable sections of society—namely, the consumers—may ultimately have to bear the severe brunt of this situation.