India raises fuel prices as global energy crisis adds pressure on
economy
[May 15, 2026] By
SHEIKH SAALIQ
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.
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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)
 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.
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AP journalists Sibi Arasu in Bengaluru, India and Shonal Ganguly in
New Delhi contributed to this report.
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