Petrol, diesel price hike: The rise of global crude oil prices to above $100 per barrel levels since the start of the US-Iran conflict has sent shockwaves across most major economies around the world. With the Strait of Hormuz still closed and a trickle of traffic flowing through it, supplies are disrupted and there seems to be no end in sight as of now.What this has meant is that major economies around the world, including India, have been forced to raise prices of petrol and diesel as the import bill continues to rise. In India the underrecoveries that oil marketing companies were suffering before last Friday’s hike in prices was around Rs 1,000 crore per day, according to the Oil Ministry’s estimates. This is despite the government’s move to cut excise duty on petrol and diesel to cushion customers. Since Friday, petrol and diesel prices have been hiked twice – Rs 3 per litre the first time, and around 90 paise per litre today. Economists say that if the situation does not improve in the coming days, then more hikes may be in the offing. However, the approach of gradual hikes in petrol and diesel prices is to avoid an immediate inflation shock to the economy.Also Read | PM Modi’s UAE visit: How India will benefit from agreements on strategic petroleum reserves, LPG – explainedIndia has so far raised its petrol and diesel rates by around 4%, much less compared to the double digit hikes seen across major economies such as the US, China, Japan. How does India’s petrol, diesel price hike compare to other countries around the world? Let’s take a look:
How India’s Petrol, Diesel Price Hike Compares To Major Countries
The sharpest fuel price increases have been witnessed in liberalised emerging economies that are heavily dependent on West Asian energy supplies and shipping routes, particularly where governments have not intervened to cushion consumers from volatility. In countries with market-linked fuel pricing, the jump in international crude costs was quickly reflected in retail rates. Petrol, Diesel: Retail price change, 23 February 2026 to 15 May 2026
Petrol prices in countries such as Myanmar, Malaysia, Pakistan and the United Arab Emirates have surged by more than 50 per cent compared to pre-conflict levels. Diesel has climbed even faster, largely because of its stronger connection to freight movement and global trade activity. Compared with three months ago, petrol prices are now roughly 55 per cent higher in Pakistan, around 56 per cent higher in Malaysia and nearly 52 per cent higher in the UAE.Also Read | Petrol, diesel price: Why were fuel rates raised now & are more hikes likely in coming days?Developed economies have also experienced significant increases, although the rise has been relatively lower in percentage terms. In the United States, where retail fuel prices respond rapidly to crude movements due to comparatively lower tax burdens, petrol prices have increased by nearly 45 per cent, while diesel is up about 48 per cent. Across Europe, higher excise duties have softened the overall impact, but price increases remain notable. Petrol prices in the United Kingdom have risen by around 19 per cent and diesel by 34 per cent. Germany has recorded increases of nearly 14 per cent in petrol and 20 per cent in diesel, while France has seen gains of about 21 per cent and 31 per cent respectively. In Asia, Japan, South Korea and Singapore have managed to keep petrol inflation below the 20 per cent mark, though diesel prices have moved substantially higher. Singapore, in particular, has witnessed a nearly 65 per cent jump in diesel prices.In India, public sector oil marketing companies, which account for nearly 90 per cent of the country’s fuel retail network, had kept petrol and diesel prices broadly unchanged from the levels prevailing on February 23, 2026, until May 15, 2026. During this period, these firms absorbed the impact of elevated crude prices at the refinery level. The latest revision, which is an increase of Rs 3.91 per litre for both petrol and diesel, marks the first hike in almost four years.
