India has increased petrol and diesel prices for the first time in four years, as tightening global crude supplies and rising import costs forced state-owned refiners to pass on higher expenses to consumers.

The retail price hike, equivalent to about $0.031 per litre, marks a rise of more than 3 percent. Authorities had delayed any adjustment for years due to the political and economic sensitivity of fuel costs for Indian households, even as refiners absorbed mounting losses.

Wholesale fuel prices had already surged sharply in recent months. Gasoline prices jumped 32.4 percent in April, while diesel climbed 25.19 percent, accelerating from comparatively modest increases recorded in March, according to local market data.

The pressure intensified after conflict in the Middle East disrupted oil flows passing through the Strait of Hormuz, a key route supplying a large portion of India’s crude imports. The supply shock pushed up the country’s oil import bill, weakened investor confidence, and drove the rupee to record lows against the U.S. dollar.

Rising fuel costs have begun feeding into broader inflation. Wholesale inflation accelerated to 8.3 percent year-on-year in April, sharply higher than 3.88 percent recorded a month earlier.

Despite maintaining strategic oil reserves, New Delhi has urged fuel conservation measures and is seeking an extension from Washington on sanctions waivers allowing continued purchases of Russian crude. The existing waiver is set to expire soon, adding uncertainty to India’s energy outlook.

Meanwhile, Indian imports of Russian oil have surged, doubling between February and March and reaching a record 2.3 million barrels per day earlier this month, according to tanker-tracking data.