Over 120 countries hike petrol-diesel prices since Iran war:No hike in fuel rates puts ₹ 2,400 crore daily loss on Indian oil companies

As global energy markets face their most volatile period in decades, a unique economic miracle is playing out at Indian petrol pumps – and this has won citizens’ heart. Despite the heightened disruptions on shipping routes via the Strait of Hormuz, petrol and diesel prices in India have remained unchanged since the Iran war began on February 28, 2026. Infact, for nearly four years, the government of India has not hiked fuel rates. On the other hand, citizens in the neighbouring countries like Pakistan, Bangladesh and Sri Lanka are grappling with record-breaking fuel hikes, Indian consumers are paying the same rates they did in May 2022. The Global Contrast Since the start of the conflict in late February 2026, the price of Brent Crude oil has swung violently, at one point touching $126 per barrel due to disruptions in the Strait of Hormuz. According to data from GlobalPetrolPrices.com, over 120 countries have raised their fuel prices to keep up with rising global energy prices. In first 1 month of the Iran war, fuel prices have risen by 30 to 50% across South and South-East Asian countries, 30% in North America, and 20% in Europe. While most major economies have passed the burden to the consumer, India has taken a different path. Here is how much other nations have hiked their fuel rates since the start of the war: The Government had two choices: either increase prices drastically for citizens of Bharat as all other nations have done, or bear the brunt on its finances so that the Indian citizen is insulated from international volatility. Honourable Prime Minister Shri Narendra Modi Ji decided to take a hit on Government finances to safeguard the Indian citizen. The Government has taken a substantial impact on its taxation revenues to reduce the high losses being faced by oil marketing companies at this time of sky-high international prices. -Minister for Petroleum and Natural Gas, Hardeep Singh Puri The Silent Cost: ₹2,400 Crore Daily Loss This stability comes at a massive price for India’s state-run oil marketing companies (OMCs)—Indian Oil (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL). Because these are buying oil at high international prices but selling it to you at frozen domestic rates, these are losing money on every litre sold. Initially, government of India press release had mentioned that these OMCs were facing a staggering ₹2,400 crore daily loss due to underrecovery. The oil companies had incurred ₹26 per litre on petrol and ₹81.90 per litre on diesel. Albeit, recent excise duty cuts by the government have slightly reduced this pressure. Why the Freeze? The Indian government has maintained this price shield to protect the public from inflation. In a country where the cost of transporting food and goods depends heavily on diesel, a sharp hike could lead to a massive rise in the price of everyday essentials. While the global average for petrol has risen by double digits, India has chosen to absorb the shock through its state-owned companies rather than hitting the common man’s pocket. Although, government sources recently said the possibility of a petrol and diesel price hike in the near future is not ruled out. Petrol is currently priced at ₹94.72 a litre in Delhi, and diesel comes for ₹87.62.