The Centre on Friday increased petrol and diesel prices by Rs 3 per litre each across the country.
With the latest revision, petrol prices in New Delhi rose from Rs 94.77 to Rs 97.77 per litre, while diesel prices increased from Rs 87.67 to Rs 90.67 per litre.
The hike comes after state-run fuel retailers kept pump prices unchanged for months despite a sharp rise in international crude oil rates triggered by the ongoing West Asia conflict.
Global crude prices have surged following the closure of the Strait of Hormuz, a critical maritime chokepoint through which nearly one-fifth of the world’s oil supply passes, amid escalating tensions involving the US, Israel and Iran. Brent crude prices have remained above the USD 100-per-barrel mark as diplomatic efforts continue to secure a long-term ceasefire in the region.
According to Sujata Sharma, Joint Secretary in the Union Petroleum Ministry, the combined under-recovery on petrol, diesel and LPG borne by the oil marketing companies (OMCs) has touched nearly Rs 30,000 crore per month.
“Our OMCs are procuring crude oil at significantly higher prices but are not passing on the full burden to consumers. This is severely impacting their financial health,” Sharma said at a press briefing.
She added that the Centre had already reduced excise duties on petrol and diesel, resulting in a monthly revenue sacrifice of nearly Rs 14,000 crore, but losses continued to widen due to elevated crude prices.
Earlier this week, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said India had managed to maintain stable fuel supplies and avoid shortages despite global energy disruptions and rising crude oil prices.
Addressing the CII Annual Business Summit 2026 on Tuesday, Puri highlighted India’s resilience in handling global energy shocks through coordinated policymaking and efficient supply management.
“At a time of global supply shocks and rising crude prices, India ensured seamless availability of petrol, diesel and LPG across the country, with no reports of shortages. Despite sharp global volatility, fuel prices have largely remained unchanged since 2022, reflecting strong policy coordination and effective supply management,” the minister said.
However, Puri warned that persistently elevated crude prices could wipe out the entire FY26 profits of public sector oil retailers.
He estimated that the combined quarterly losses of OMCs could reach nearly Rs 1 lakh crore if current trends continue.
Industry estimates discussed during the summit projected that the three state-run fuel retailers, Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd, could together post losses of nearly Rs 1.2 lakh crore in the first quarter of FY27 alone.
(With inputs from agencies)
