• Petrol and diesel prices in India have been increased by Rs 3 per litre.
• The hikes are attributed to rising global crude oil prices linked to the Iran crisis.
• State-run oil companies had not raised prices for four years, facing substantial losses.
• Current petrol prices in Delhi are now Rs 97.77 and diesel Rs 90.67 per litre.
• Experts suggest further hikes might be imminent if global prices remain high.

India's petrol and diesel prices have been raised by Rs 3 per litre as the government responds to mounting financial pressures from elevated global crude oil prices driven by geopolitical tensions in the region. Following the recent spike in oil prices, petrol in New Delhi now costs Rs 97.77, while diesel costs Rs 90.67, reflecting a long-overdue adjustment after four years without any price changes, according to Indiatimes, Reuters, and Al Jazeera.

The decision to hike fuel prices comes in the wake of the ongoing conflict between the U.S. and Iran and disruption around the strategic Strait of Hormuz, which has substantially impacted global oil supply lines. This has resulted in crude oil prices soaring past $100 per barrel, reaching between $104 to $110, compelling Indian oil marketing companies (OMCs) to revise their pricing, according to Indiatimes, Indiatimes, and Al Jazeera.

Indian Oil Corporation's Director (Refineries), Arvind Kumar, referred to the new price hike as a 'small rise' and emphasized that refineries are operating at over 100% capacity to cope with supply demands. However, he acknowledged the ongoing financial strains faced by OMCs, collectively estimated to be losing approximately Rs 1,000 crore daily due to the inability to raise retail prices until now, according to Indiatimes and Indiatimes.

The increase comes after a period of strategic inaction that lasted through recent elections in four Indian states. This has raised concerns among opposition leaders who note that fuel remained unchanged during the election period. Following these developments, Prime Minister Narendra Modi has urged citizens to adopt austerity measures regarding fuel consumption, describing the act of conserving fuel as a form of "patriotism," according to Indiatimes and Al Jazeera.

As India relies heavily on imported crude oil—approximately 90% of its consumption—the latest hikes are not expected to be the final adjustments. Experts anticipate that further increases may occur if the ongoing Iranian crisis and elevated global fuel prices persist, signifying a potential shift in retail pricing practices in response to these pressures, according to Indiatimes and Al Jazeera.