Mumbai: Residents of Mumbai are facing another increase in fuel prices after oil marketing companies on Tuesday raised petrol and diesel rates for the second time within a week amid rising global crude oil prices linked to the ongoing Iran conflict. With the latest revision, petrol prices in Mumbai have climbed by 91 paise to Rs 107.59 per litre, while diesel has become costlier by 94 paise and is now retailing at Rs 94.08 per litre.
The latest increase comes just three days after fuel prices were raised by Rs 3 per litre on Friday, majorly increasing transportation and commuting costs for Mumbaikars already dealing with inflationary pressure. The fresh hike is largely driven by the sharp surge in international crude oil prices due to tensions in West Asia, particularly disruptions linked to the conflict involving Iran.
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Sharp Rise In Crude Oil Prices
According to data released by the Petroleum Planning and Analysis Cell under the Petroleum Ministry, the average price of India’s crude oil basket has jumped from USD 69.01 per barrel in February 2026 to USD 110.73 per barrel as of May 15, an increase of over 60 per cent in less than three months.
The situation has been worsened by disruptions in cargo movement through the Strait of Hormuz, through which a major share of India’s crude oil imports traditionally passes. India imports more than 85 per cent of its crude oil requirements, making domestic fuel prices highly sensitive to global market fluctuations.
Mumbai, being one of the country’s largest metropolitan and commercial hubs, is likely to feel the impact more sharply due to its heavy dependence on road transport, logistics and daily commuting.
Taxi operators, app-based cab drivers and transporters have already started expressing concern over the rising operational costs. The repeated hikes are also expected to affect prices of essential goods and services, as transportation expenses rise across the supply chain.
Another factor contributing to the price rise is the weakening of the Indian rupee against the US dollar. With the rupee reportedly touching around 96 against the dollar, oil imports have become more expensive for Indian refiners and oil companies.
Despite the earlier Rs 3 increase, oil marketing companies were reportedly still facing losses after maintaining older fuel rates for nearly 10 weeks amid continuously rising global crude prices. It is also speculated that if geopolitical tensions in West Asia continue or escalate further, Mumbai and other major Indian cities could witness additional fuel price increases in the coming weeks.
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