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Fuel Prices Surge: India's Highest Since May 2022
22 Jun
Summary
- Fuel prices hit highest levels since May 2022 after steadying.
- US-Iran war disrupts India's crucial energy imports from Gulf.
- Oil Minister expects prices to drop due to new supply sources.
Fuel prices in India are currently at their peak levels since May 2022, following a series of price increases. The latest adjustments came after oil marketing companies raised the cost of both petrol and diesel by over ₹2.50 per litre on May 25, 2026. This followed cumulative hikes of nearly ₹7.50 per litre since May 15, 2026.
The global geopolitical situation, specifically the US-Iran war, has significantly impacted India's energy imports. The country relies heavily on the Gulf region for a substantial portion of its crude oil, natural gas, and LPG supplies, all of which have been disrupted. For instance, 40% of India's crude oil imports originate from this region.
Despite the current high costs, Union Oil Minister Hardeep Singh Puri has conveyed optimism about future price trends. He assured that sufficient fuel stocks are available and predicted a decline in prices in the upcoming months. Additional supplies from Canada and the United States are expected to help stabilize the market, though the situation remains volatile and could worsen if the conflict escalates.
