After holding petrol and diesel costs largely unchanged for greater than two months regardless of extreme volatility in international vitality markets, India has begun a phased gas worth revision. Nevertheless, a brand new report, quoting authorities knowledge, means that even after the newest will increase, India stays among the many international locations with the smallest gas worth hikes globally in the course of the latest crude oil shock.
In keeping with the report, Petrol and Diesel: The Structure of Client Safety, gas costs had been stored regular for 76 days in the course of the Hormuz disruption, with oil advertising firms (OMCs) and the federal government absorbing rising prices earlier than ultimately implementing revisions. Throughout three separate worth adjustments introduced on Could 15, Could 19 and Could 23, petrol costs elevated by a cumulative ₹4.74 per litre, whereas diesel costs rose ₹4.82 per litre.
The newest revisions come after a interval of extraordinary turbulence in international crude markets, with provide considerations and geopolitical tensions pushing costs sharply greater. However in contrast with main economies world wide, India’s gas worth enhance has remained comparatively modest.
Lowest gas worth enhance
The report highlighted that between February and Could 2026, India recorded a gas worth enhance of round 5%, among the many lowest globally outdoors closely subsidised oil-producing nations.
Different developed economies additionally noticed substantial rises, together with the UK at 19.2% and Japan at 9.7%. Saudi Arabia reported no enhance resulting from direct home subsidisation.
Worldwide comparisons present that India witnessed a comparatively modest enhance in gas costs regardless of the latest crude oil shock. In keeping with the report, Myanmar recorded the steepest petrol worth rise at 89.7%, adopted by Pakistan at 54.9%, the UAE at 52.4% and the US at 44.5%.
A number of developed economies additionally skilled notable will increase, with the UK reporting a 19.2% rise and Japan 9.7%. As compared, India’s petrol worth enhance stood at round 5%, putting it among the many lowest amongst main economies. Saudi Arabia recorded no enhance, supported by its home vitality subsidy framework.
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The report argues that India’s smaller enhance was made doable as a result of retail gas costs weren’t instantly adjusted consistent with worldwide crude actions.
Monetary stress
The worldwide oil shock created huge stress on the home gas pricing system. Through the Hormuz disruption, Brent crude reportedly climbed to just about $126 per barrel, leading to substantial under-recoveries. On the peak of the disaster, the federal government was successfully absorbing round ₹24 per litre on petrol and ₹30 per litre on diesel, whereas losses on the refinery gate had been even greater.
Earlier than the phased revisions started, state-run OMCs had been reportedly incurring losses of roughly ₹1,000 crore per day. After the gas worth will increase, every day losses reportedly eased to round ₹750 crore, though the monetary burden didn’t disappear totally.
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Authorities intervention and tax aid
The report additionally famous that the Centre intervened by tax measures. On March 27, 2026, the federal government lowered Particular Extra Excise Responsibility (SAED) on fuels, a transfer estimated to price the exchequer almost ₹30,000 crore within the present fiscal yr.
The research additional said that India lower gas costs a number of instances throughout latest international vitality disruptions, together with durations linked to the Russia–Ukraine battle and provide disruptions in West Asia.
In the meantime, gas costs proceed to fluctuate considerably throughout Indian states resulting from differing VAT constructions. States corresponding to Andhra Pradesh, Telangana and Kerala recorded a number of the highest gas costs after the newest revisions, whereas Gujarat, Uttar Pradesh, Delhi, Haryana, Goa and Assam remained amongst lower-priced markets.
The report concluded that whereas customers at the moment are seeing gas worth hikes after an extended freeze, India’s enhance stays comparatively restricted when considered towards international friends that handed by a a lot bigger portion of rising crude prices on to customers.
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