As the Middle East crisis escalates, concerns have grown over a possible rise in petrol and diesel prices. However, despite a sharp increase in global crude oil prices, fuel rates in major Indian cities have remained unchanged. Consumers can breathe a sigh of relief as retail petrol and diesel prices in the country are not expected to rise in the immediate future, according to government sources cited by PTI. The government is reportedly following a calibrated strategy that allows oil marketing companies to improve their margins when international crude prices are low, while shielding consumers when global prices increase.
According to a Nomura report, oil marketing companies (OMCs) may absorb part of the increase, instead of passing it fully to consumers. The report stated that the government's earlier decision not to cut retail petrol and diesel prices when global crude prices had fallen has created a buffer for OMCs to handle the impact of the latest rise in oil prices.
In theory, a 10% jump in global crude prices could add around 50 basis points to inflation if the entire increase is passed on to consumers, compared with the earlier estimate of 30 basis points. However, such pass-through rarely happens immediately. “Retail prices of petrol and diesel are unofficially pegged, with OMCs absorbing the impact through their balance sheets,” the report noted.
Crude oil prices have already climbed notably amid geopolitical tensions. Since the US/Israel attacks on Iran, Brent crude has risen 16.8%, while WTI crude has increased by 14%.
Petrol, disel prices today: Check rates in your city
As of 05 March 2026, petrol and diesel prices in major cities were as follows:
- New Delhi: Petrol Rs 94.77 per litre, Diesel Rs 87.67 per litre
- Hyderabad: Petrol Rs 107.46 per litre, Diesel Rs 95.70 per litre
- Bengaluru: Petrol Rs 102.92 per litre, Diesel Rs 90.99 per litre
- Chennai: Petrol Rs 100.84 per litre, Diesel Rs 92.39 per litre
- Kolkata: Petrol Rs 105.45 per litre, Diesel Rs 92.02 per litre
- Lucknow: Petrol Rs 94.69 per litre, Diesel Rs 87.81 per litre
- Jaipur: Petrol Rs 104.72 per litre, Diesel Rs 90.21 per litre
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