Petrol and diesel prices rise again due to Iran conflict, fourth increase in 10 days

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

Price hikes followed a near-total Iranian blockade of the Strait of Hormuz, the world’s most vital energy shipping route, since the February conflict began. 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 surge by around 5% since the conflict started.

Fuel prices vary by region in India, but the government generally increased prices by over ₹2 (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 from ₹99.50, while diesel prices increased to ₹95.20 per litre.

The energy price hikes came just days after Prime Minister Narendra Modi stated that fuel consumption restrictions were necessary to conserve foreign reserves depleted by energy imports.

Rising Russian Oil Purchases

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

Earlier this month, India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, revealed significant revenue losses for oil marketing companies. “Losses amount to up to $120 million (approximately Rp2.13 trillion) per day,” Puri stated, as reported by AFP.

Nevertheless, Puri assured the national energy supply remains secure, with the government guaranteeing “no disruption to energy imports and supply”.