Petrol Diesel Price Hike Coming? Rates Unchanged on 1 October 2026 as Oil Companies Lose ₹8–9 a Litre; ATF Up ₹16
Petrol and diesel prices were left unchanged on 1 October 2026, with petrol at ₹102.12 a litre and diesel at ₹95.20 in Delhi, according to retail price data published by the Petroleum Planning and Analysis Cell (PPAC). On the same day, oil companies raised the price of aviation turbine fuel (ATF) for domestic airlines by ₹16 to ₹137 a litre. No petrol diesel price hike has been announced, but rating agency ICRA estimates that state-run oil marketing companies are losing ₹8 a litre on petrol and ₹9 on diesel.
The petrol price in Delhi and other cities has not moved since 25 May 2026. The question being asked now is whether the gap between crude oil costs and retail prices will force another round of increases, after a combined rise of about ₹7.50 a litre in May.
Petrol price today Delhi, Mumbai, Kolkata and Chennai
The table below gives the petrol price today in Delhi and the other three metros, as published by PPAC for 1 October 2026. The same rates have applied every day since 25 May, and they continue on 2 October.
| City | Petrol (₹/litre) | Diesel (₹/litre) |
|---|---|---|
| Delhi | 102.12 | 95.20 |
| Mumbai | 111.21 | 97.83 |
| Kolkata | 113.51 | 99.82 |
| Chennai | 107.77 | 99.55 |
Source: PPAC, retail selling price of petrol and diesel in metro cities (table posted 1 October 2026). Rates in other cities differ because of state VAT and local charges. Some news reports round the Delhi petrol price to ₹102.
How prices rose in May
PPAC’s daily table shows four revisions in May 2026. In Delhi, petrol went from ₹94.77 to ₹97.77 on 15 May, then to ₹98.64 on 19 May, ₹99.51 on 23 May and ₹102.12 on 25 May. Diesel moved from ₹87.67 to ₹90.67, ₹91.58, ₹92.49 and finally ₹95.20 on the same dates. That adds up to ₹7.35 a litre on petrol and ₹7.53 on diesel in Delhi, which matches the “around ₹7.50” increase cited by Hindustan Times. That was the last petrol diesel price hike.
Why a petrol diesel price hike is being discussed
The pressure comes from crude oil. ICRA said in a report on 23 September that the Indian basket of crude oil rose to $117.4 a barrel on 21 September 2026, against an average of about $66 in 2025-26, after the West Asia conflict disrupted supply routes. Brent was trading at about $100.5 a barrel on 1 October, up 2.5% on the day, PTI reported.
“With domestic retail prices remaining unchanged so far, the marketing margins of OMCs were estimated at negative Rs 8 per litre on petrol and negative Rs 9 a litre on diesel,” ICRA’s Prashant Vasisht said, as quoted by PTI in ABP Live’s report on ICRA’s estimate. Counting under-recoveries of about ₹300 per domestic LPG cylinder as well, ICRA put the daily loss to Indian Oil, BPCL and HPCL at ₹530 crore.
| Item | ICRA estimate (September 2026) |
|---|---|
| Marketing margin on petrol | −₹8 per litre |
| Marketing margin on diesel | −₹9 per litre |
| Under-recovery on domestic LPG | About ₹300 per cylinder |
| Daily loss to the three OMCs (all three products) | ₹530 crore |
| Indian crude basket, 21 September | $117.4 per barrel |
In a Business Standard poll of economists published on 2 October, ICRA chief economist Aditi Nayar said retail petrol and diesel prices “may need to be raised by as much as ₹8-9 per litre at current crude prices”, which she said would make inflationary pressures more broad-based. That is an economist’s estimate of the gap, and neither the government nor the oil companies have indicated a revision.
ICRA also noted that refining margins have stayed relatively strong, with Singapore gross refining margins above $10 a barrel since the crisis began, which partly offsets the marketing losses for companies that both refine and sell fuel.
ATF price hike and LPG on 1 October
The ATF price hike on 1 October took the rate for domestic airlines in Delhi to ₹137 a litre from ₹121, Hindustan Times reported, citing the oil companies. It followed an increase of ₹6.28 a litre in September and ₹5 in August. HT noted that fuel accounts for as much as 40% of an airline’s operating costs, so a sustained ATF price hike tends to feed into air fares.
Commercial LPG went up by ₹62.50 to ₹2,810 per 19-kg cylinder in Delhi, from ₹2,747.50 in September, according to Indian Oil’s price pages, while the 14.2-kg domestic cylinder stayed at ₹942. ATF and LPG prices are revised on the first day of each month, HT noted, while petrol and diesel prices can change on any day.
What would a hike of ₹8–9 mean at the pump?
The figures below show what a petrol diesel price hike of ₹8–9 would look like if it were added to Delhi prices; they are arithmetic only, based on Nayar’s range. The actual increase at the pump could be different, because state VAT is charged on top of the base price and the government could also adjust excise duty instead of passing the full amount on.
| Scenario (Delhi) | Current price | After a ₹8 rise | After a ₹9 rise |
|---|---|---|---|
| Petrol, per litre | ₹102.12 | ₹110.12 | ₹111.12 |
| Diesel, per litre | ₹95.20 | ₹103.20 | ₹104.20 |
| Two-wheeler using 30 litres of petrol a month | ₹3,063.60 | ₹3,303.60 | ₹3,333.60 |
| Car using 60 litres of petrol a month | ₹6,127.20 | ₹6,607.20 | ₹6,667.20 |
Higher diesel prices would also raise freight costs. Crude-oil derivatives are already among the reasons appliance makers gave for the AC and TV price increases from October.
Link with inflation and the RBI meeting
Fuel prices sit at the centre of the inflation debate ahead of the RBI’s Monetary Policy Committee meeting on 5–7 October. Retail inflation rose to 4.82% in August from 4.45% in July, and economists in the Business Standard poll cited the risk of costlier fuel among the reasons they expect a repo rate increase; the details are in our RBI policy preview. Fuel imports are paid in dollars, so the rupee’s slide to 96.31 on 1 October also raises the cost of each barrel, as explained in our dollar to rupee report. Auto stocks were the biggest losers on the Sensex that day, according to our market report for 1 October.
FAQ: petrol diesel price hike
Has a petrol diesel price hike been announced for October 2026?
No. As of 2 October, the petrol price in Delhi is ₹102.12 a litre and diesel costs ₹95.20, both unchanged since 25 May.
How much are oil companies losing on fuel?
ICRA estimated in September that they lose about ₹8 a litre on petrol and ₹9 on diesel. Including domestic LPG, the daily loss was put at ₹530 crore.
Why did ATF prices go up but not petrol?
ATF is revised every month in line with international prices, and it rose ₹16 a litre on 1 October. Petrol and diesel prices have been held since 25 May despite the losses ICRA has flagged.
Disclaimer: Prices are from PPAC and Indian Oil as of 1 October 2026, and loss estimates are ICRA’s. Fuel prices can change at short notice; check the latest rate at your local outlet.
