As of May 30, fuel prices across India remained stable following a recent increase on May 25, when petrol prices rose by ₹2.61 per litre and diesel by ₹2.71 per litre. This increase was a response to surging international crude prices, influenced by ongoing conflicts in the Middle East, particularly the US-Iran tensions that began in late February. The Strait of Hormuz, a vital energy passage, has faced disruptions, contributing to rising oil prices. Analysts suggest that the current cycle of price hikes by state-owned oil marketing companies (OMCs) is likely to continue as they recover revenue losses from previous under-recoveries on fuel. The finance ministry's Monthly Economic Review for May 2026 indicates that these fuel price increases could lead to both direct and indirect inflation, especially if energy prices continue to rise. Additionally, a deficient monsoon could exacerbate food price inflation, compounding the effects of rising energy costs. Despite the geopolitical challenges, India has managed to meet its crude oil needs through diversified sourcing arrangements, reducing reliance on any single supply route.