NEW DELHI (AP) — India raised fuel prices by 3 rupees ($0.03) per liter Friday as the government moved to offset losses due to higher global oil prices.
In New Delhi, gasoline prices rose to 97.77 rupees ($1.17) a liter, while diesel climbed to 90.67 rupees ($1.09) a liter.
India imports about 90% of its oil and has been hit hard by rising energy prices and supply disruptions linked to the Iran war and the closure of the Strait of Hormuz. It had until now avoided raising retail fuel prices despite sharp increases in energy costs, making it one of the last major economies to pass higher crude prices on to consumers.
The price increases came days after Prime Minister Narendra Modi urged Indians to adopt voluntary austerity measures.
Modi on Sunday called on people to work from home where possible, limit foreign travel and reduce purchases of gold. He described fuel conservation and saving foreign exchange as an act of “patriotism,” and encouraged greater use of public transportation, carpooling and lower fertilizer consumption.
Opposition leaders said Modi’s appeal came only after a key round of state elections had concluded, noting that fuel prices were kept unchanged during the campaign.
Manoj Kumar, a 48-year-old taxi driver in New Delhi, said the rise in fuel prices was adding to the strain on working-class people.
“For common people like us, even one rupee has great value. People work so hard from morning till evening just to make ends meet. The government is not seeing this," he said.
Earlier this week, India also raised import duties on gold and silver to 15% in an effort to curb demand for imports that drain foreign exchange reserves.
The Indian rupee has fallen to record lows in recent weeks as higher oil prices increased pressure on imports and foreign exchange reserves.
Meanwhile, India’s capital has become the first state to roll out austerity measures.
Authorities in New Delhi on Thursday announced fuel-saving measures, including mandatory work-from-home days for some government employees. Delhi Chief Minister Rekha Gupta said the 90-day campaign aims to reduce official fuel use and encourage people in the capital to rely more on public transportation instead of private vehicles.
Under the plan, employees whose work can be done remotely will work from home two days a week, while private companies are being encouraged to adopt similar measures voluntarily.
India has also accelerated ethanol blending in gasoline as part of its push to cut crude oil imports.
Most fuel stations across the country now sell gasoline blended with 20% ethanol, and the government has proposed expanding the use of fuels containing 85% — or even 100% — ethanol in compatible vehicles.
Energy experts said blending biofuel can help shield from global energy shocks but can lead to further stressing already depleting groundwater resources, encroach on land meant for food crops and impact older vehicles’ engines.
AP journalists Sibi Arasu in Bengaluru, India and Shonal Ganguly in New Delhi contributed to this report.
A commuter monitors the meter as an attendant refuels his vehicle at a filling station in New Delhi, India, Friday, May 15, 2026. (AP Photo/Shonal Ganguly)
A commuter monitors the meter as an attendant refuels his scooter at a filling station in New Delhi, India, Friday, May 15, 2026. (AP Photo/Shonal Ganguly)
