India’s fuel prices have surged amid Strait of Hormuz disruptions due to the US-Iran war, with hikes of over ₹7 per litre in both petrol and diesel prices.

India’s fuel prices have now been raised four times in less than two weeks, and experts say another hike cannot be ruled out as the US-Iran war continues to disrupt global energy supplies and keep crude oil markets volatile.

State-run oil marketing companies (OMCs) on Monday increased petrol prices by ₹2.61 per litre and diesel by ₹2.71 per litre, taking cumulative hikes since May 15 to about ₹7.35 and ₹7.53 per litre respectively.

In Delhi, petrol is now retailing at ₹102.12 per litre and diesel at ₹95.20 — the first time in four years that petrol prices in the national capital have crossed the ₹100 mark.

The hikes come amid continuing tensions in West Asia following the US-Iran conflict that erupted in late February. A major reason behind soaring oil prices has been the disruption of traffic through the Strait of Hormuz.

Why the Strait of Hormuz matters to India’s fuel prices
The sharp rise in petrol and diesel prices in India is closely linked to the disruption of oil movement through the Strait of Hormuz — one of the world’s most crucial energy shipping routes. Nearly one-fifth of global crude oil and liquefied natural gas supplies pass through the narrow waterway between Iran and Oman, making it vital for countries heavily dependent on imported energy, including India.

Following the escalation of the US-Iran conflict in West Asia, commercial movement through the strait has been severely disrupted, triggering fears of supply shortages across global markets.

The uncertainty pushed Brent crude prices sharply higher, increasing costs for Indian state-run oil companies that import most of the country’s crude requirements. Since India imports over 85% of its crude oil needs, any disruption in global supplies or spike in international prices directly impacts domestic fuel rates.

Why experts believe more hikes may follow
Industry executives and energy analysts say the current round of revisions may not be over yet.

According to sector experts quoted by Reuters, state-run retailers are still trying to recover current revenue losses as well as past “under-recoveries” accumulated while they held prices steady despite rising crude costs during the early phase of the war and assembly election season.

Brent crude had jumped from about $72.87 per barrel on February 27 to nearly $120 in March after the conflict escalated sharply. Though prices have eased recently and briefly slipped below $100 amid hopes of diplomacy, analysts say the current crude environment remains expensive enough to keep pressure on Indian fuel retailers.