Fuel prices rise for fourth time in 10 days

Jakarta, CNBC Indonesia - India’s state-owned fuel company has raised petrol and diesel prices for the fourth time in 10 days as of Monday, 25 May 2026, driven by Middle Eastern conflicts tightening global energy supplies.

The price surge follows a conflict that began in February, leading Iran to impose near-total blockades on the Strait of Hormuz, the world’s most vital energy shipping route. This has strained oil supplies for India, the world’s third-largest crude oil importer.

Approximately half of India’s crude oil imports typically pass through the Strait of Hormuz. Distribution disruptions have caused vehicle fuel prices in the country to rise by around 5% since the conflict began.

Fuel prices vary by region in India, but the government generally increased prices by over 2 rupees (approximately $0.02) per litre in the latest adjustment. At an exchange rate of Rp17,725 per US dollar, this equates to roughly Rp354 per litre.

In New Delhi, petrol prices have risen to 102.12 rupees from 99.50 rupees, while diesel prices increased to 95.20 rupees per litre.

The energy price hike comes just days after Prime Minister Narendra Modi stated that fuel usage restrictions are necessary to conserve foreign reserves drained by energy imports.

Russia Oil Increase

Amid Middle Eastern supply pressures, India has also increased crude oil purchases from Russia. This move follows a temporary exemption from US sanctions.

Earlier this month, India’s Petroleum and Natural Gas Minister Hardeep Singh Puri revealed that oil marketing companies have suffered significant revenue declines. “Losses reach up to $120 million (approximately Rp2.13 trillion) per day,” Puri said, according to AFP.

Nevertheless, Puri assured national energy supplies remain secure, stating the government guarantees “energy imports and supplies will not be disrupted.”