Petrol hits ₹110.89 in Hyderabad after ₹3+ hike; city-wise fuel rates on 15 May
Synopsis
For the first time since May 2022, state-run oil companies have raised petrol and diesel prices by over ₹3 per litre — a long-deferred correction driven by global crude volatility and the West Asia crisis. With Hyderabad petrol at ₹110.89 and Thiruvananthapuram diesel hitting a national high of ₹99.63, the hike's uneven impact across states exposes how much of India's pump price is a tax policy decision, not just a crude price one.
Key Takeaways
State-run oil companies raised petrol prices by ₹3–₹3.46 per litre and diesel by ₹3–₹3.56 per litre on 15 May .
This is the first major fuel price revision since May 2022 , triggered by rising global crude costs and the West Asia crisis .
Hyderabad recorded the highest petrol price at ₹110.89 per litre ; Thiruvananthapuram diesel hit a national high of ₹99.63 per litre .
Delhi petrol now stands at ₹97.77 per litre ; diesel at ₹90.67 per litre .
Chandigarh remains the most affordable major city, with petrol at ₹97.27 and diesel at ₹85.25 per litre .
Price variation across cities is driven by differing state VAT rates and local levies on petroleum products.
Petrol and diesel prices surged across major Indian cities on Friday, 15 May, after state-run oil marketing companies announced a fresh hike of over ₹3 per litre, citing rising global crude oil prices and supply concerns stemming from the ongoing West Asia crisis. The revision marks the first significant fuel price adjustment since May 2022, ending a period of relative stability despite persistent volatility in international crude markets.
Key Developments
Oil marketing companies attributed the hike to mounting losses from higher crude procurement and refining costs. Petrol prices were raised by between ₹3 and ₹3.46 per litre across the country, while diesel prices increased by ₹3 to ₹3.56 per litre, with variation depending on state and local tax structures.
In the national capital New Delhi, petrol prices rose by ₹3 to reach ₹97.77 per litre, while diesel climbed to ₹90.67 per litre after a similar increase.
City-Wise Fuel Rates After the Hike
Hyderabad recorded the highest petrol price among major cities, with rates rising by ₹3.39 to ₹110.89 per litre. Diesel in the city also surged to ₹98.96 per litre. Thiruvananthapuram followed closely, with petrol touching ₹110.75 per litre and diesel climbing by ₹3.37 to ₹99.63 per litre — the highest diesel rate in the country.
In Kolkata, petrol crossed the ₹108 mark, reaching ₹108.74 per litre, with diesel at ₹95.13 per litre. Mumbai residents now pay ₹106.64 per litre for petrol after a ₹3.10 hike, while diesel rose by ₹3.11 to ₹93.14 per litre. Bengaluru saw petrol rise by ₹3.25 to ₹106.21 per litre and diesel climb by ₹3.11 to ₹94.10 per litre.
Chennai recorded petrol at ₹103.67 per litre and diesel at ₹95.25 per litre. Jaipur saw petrol reach ₹107.97 per litre after a ₹2.94 increase, while Bhubaneswar rates rose by ₹3.22 to ₹104.19 per litre.
In the Delhi NCR belt, Gurugram petrol prices increased by ₹3.17 to ₹98.47 per litre, while Noida saw a ₹3.04 rise to ₹97.78 per litre. Lucknow remained among the more affordable major cities, with petrol up by ₹2.82 to ₹97.55 per litre.
Chandigarh Remains Cheapest Among Major Cities
Despite the across-the-board hike, Chandigarh retained its position as the city with the lowest fuel prices among major urban centres. Petrol there increased by ₹2.97 to ₹97.27 per litre, while diesel rose by ₹2.80 to ₹85.25 per litre — significantly below the national average.
Why Prices Vary Across Cities
Fuel prices in India differ from city to city primarily because of state-level value-added tax (VAT), local body levies, and freight charges. States like Telangana and Kerala, which levy higher taxes on petroleum products, consistently record some of the steepest pump prices in the country. This structural disparity means a uniform central hike translates into varying consumer impact depending on location.
What This Means for Consumers and the Economy
This is the first major fuel price revision in over three years, and it arrives at a sensitive juncture. Notably, higher fuel costs typically feed through to transportation and logistics expenses, exerting upward pressure on consumer prices broadly. With the West Asia conflict continuing to cloud crude supply outlooks, analysts warn that further revisions cannot be ruled out if international oil prices remain elevated. Consumers and businesses alike will be watching global crude benchmarks closely in the weeks ahead.
Point of View
Not an economic one — and the bill has now arrived in a single sharp revision. Spreading the correction over time would have been less disruptive, but oil marketing companies absorbed losses instead, and consumers now face a sudden ₹3-plus shock. The deeper issue is structural: with states like Telangana and Kerala collecting outsized VAT on fuel, the Centre's decision to hold prices masked how much of the pump price is a state revenue stream. Until petroleum products are brought under GST — a reform that has stalled for years — consumers in high-tax states will continue paying a premium that has nothing to do with crude oil.
NationPress
12 Aug 2026
Frequently Asked Questions
Why did petrol and diesel prices increase on 15 May 2025?
State-run oil marketing companies raised fuel prices by over ₹3 per litre on 15 May, citing mounting losses from higher global crude oil procurement and refining costs, compounded by supply concerns linked to the ongoing West Asia crisis. It is the first major revision since May 2022.
What is the new petrol price in Delhi after the hike?
Petrol in Delhi now costs ₹97.77 per litre following a ₹3 increase. Diesel in the capital has risen to ₹90.67 per litre after a similar hike.
Which city has the highest petrol price in India after the revision?
Hyderabad has the highest petrol price among major Indian cities at ₹110.89 per litre, after an increase of ₹3.39. Thiruvananthapuram recorded the country's highest diesel rate at ₹99.63 per litre.
Which city has the lowest fuel prices after the hike?
Chandigarh remains the most affordable major city, with petrol at ₹97.27 per litre and diesel at ₹85.25 per litre — the lowest among major urban centres despite the revision.
Why do fuel prices differ across Indian cities?
Fuel prices vary because each state levies its own value-added tax (VAT) and local body charges on top of the central excise duty. States with higher petroleum taxes — such as Telangana and Kerala — consistently record steeper pump prices, meaning a uniform central hike has an unequal impact on consumers depending on their location.
