India raises fuel prices as oil shock pressures rupee and reserves

India raised gasoline and diesel prices by 3 rupees, or $0.03, per liter on May 15, 2026, passing higher global crude costs to consumers as the Iran war and the closure of the Strait of Hormuz strain its economy. In New Delhi, gasoline rose to 97.77 rupees, or $1.17, per liter, while diesel climbed to 90.67 rupees, or $1.09. India imports about 90% of its oil and had delayed retail fuel increases despite rising import costs, adding pressure on foreign exchange reserves and pushing the rupee to record lows. Prime Minister Narendra Modi on May 10 urged voluntary austerity measures, including work-from-home arrangements, reduced foreign travel, lower gold purchases, public transit use and carpooling. India also raised import duties on gold and silver to 15% this week to curb demand for foreign exchange-draining imports. New Delhi on May 14 announced a 90-day fuel-saving campaign requiring some government employees to work remotely two days a week.