Premium Petrol Price In India Hiked From March 20 After Gulf Supply Disruption, Regular Petrol Unchanged

India

oi-Ashish Rana

Premium petrol prices in India have been raised by up to ₹2.35 per litre from March 20, with the latest increase coming amid renewed global energy disruption linked to the Middle East conflict.

The revision affects premium fuel variants sold by BPCL, HPCL and IOCL, while regular petrol prices remain unchanged for now. The latest hike also comes against the backdrop of a much broader long-term rise in petrol prices in India, with average rates climbing sharply over the past two decades.

Premium petrol gets costlier from March 20, regular petrol unchanged

Premium-grade petrol sold by state-run oil marketing companies has become more expensive from March 20. BPCL’s Speed, HPCL’s Power and IOCL’s XP95 have all seen price increases ranging from ₹2.09 to ₹2.35 per litre, according to reports.

However, there has been no change in the retail price of regular petrol at present, offering some relief to motorists who use standard fuel.

An internal communication from HPCL also pointed to the revision in premium fuel rates. “Kindly note the RSP for poWer 95 has been increased by Rs. 2 from today. Ensure to display the correct price,” read a message to a petrol pump owner by the HPCL management hindustantimes.com accessed.

Petrol pump operators have also confirmed the revised pricing on the ground. Arshwinder Mongia, president mohali petrol pump association Punjab, said the premium petrol rate at his outlet moved from ₹105.16 per litre to ₹107.13 per litre after the latest increase.

India’s petrol prices have climbed sharply over the last two decades

While the latest hike is limited to premium petrol variants, it reflects a much wider trend in India’s fuel market. Petrol prices in the country have risen significantly over the years, with the average retail price climbing from around ₹34 per litre in 2004 to about ₹105.01 per litre in 2025.

The long-term rise has been shaped by multiple factors, including global crude oil prices, the rupee-dollar exchange rate, excise duty and VAT, refining and distribution costs, and repeated geopolitical disruptions.

Historically, petrol prices in India were tightly regulated before economic liberalisation. But over time, international crude prices began playing a much larger role in determining domestic fuel costs, even as taxation and policy decisions continued to heavily influence what consumers pay at the pump.

How petrol prices changed from 2004 to 2025

A look at the broader trend shows how sharply fuel prices have moved over the past two decades:

• 2004: ₹34 per litre
• 2005: ₹38 per litre
• 2006: ₹41 per litre
• 2007: ₹44 per litre
• 2008: ₹51 per litre
• 2009: ₹48 per litre
• 2010: ₹52 per litre
• 2011: ₹63.77 per litre
• 2012: ₹68.57 per litre
• 2013: ₹72.26 per litre
• 2014: ₹72.43 per litre
• 2015: ₹60.50 per litre
• 2016: ₹64.38 per litre
• 2017: ₹69.99 per litre
• 2018: ₹78.52 per litre
• 2019: ₹73.83 per litre
• 2020: ₹80.43 per litre
• 2021: ₹95.41 per litre
• 2022: ₹95 per litre
• 2023: ₹98 per litre
• 2024: ₹100 per litre
• 2025: ₹105.01 per litre

The data underlines a clear long-term upward trajectory, even though there have been occasional dips in some years due to softer crude prices or temporary tax adjustments.

From independence-era prices to today’s record levels

India’s petrol pricing story stretches far beyond the past two decades. In 1947, petrol reportedly cost around ₹0.25 to ₹0.27 per litre. By 1970, it had risen to around ₹0.90 per litre, and by 1990, the price was roughly ₹4.20 per litre.

By the end of 2004, petrol had climbed to around ₹33.71 per litre, before accelerating sharply over the next two decades. By 2013, petrol prices had already crossed ₹72 per litre, and by 2025, average prices had touched ₹105.01 per litre.

The steep rise over time reflects inflation, a weaker rupee, higher import costs, changes in subsidy regimes, and heavy central and state taxes on fuel.

Middle East conflict adds fresh pressure to global oil and gas markets

The immediate trigger for the latest premium petrol hike is the growing energy shock caused by the US-Israeli strikes on Iran and the resulting military escalation across the Gulf region.

The February 28 strikes triggered a major exchange of drones and missiles, affecting the wider Middle East and severely disrupting the Strait of Hormuz, a critical maritime route that carries nearly one-fifth of the world’s oil and liquefied natural gas.

Energy markets were further rattled after Iran struck Qatar’s Ras Laffan LNG facility and warned it could target more regional energy infrastructure. The escalation sent Brent crude surging by as much as 10 per cent before easing, while European gas prices jumped 35 per cent.

Donald Trump also warned of a “massive blow” by the US if such attacks continued, adding to fears of further instability in the region.

Iran’s military later described the earlier strike on South Pars as a “major mistake”, with the gas field accounting for around 70 per cent of the country’s domestic natural gas supply.