Petrol and diesel prices in India are expected to increase before May 15 as oil marketing companies continue to face heavy financial pressure due to rising global crude oil prices. According to sources, public sector oil firms are currently suffering under-recoveries of nearly 30,000 crore every month because retail fuel prices have remained largely unchanged despite sharp increases in international crude rates.
The crisis intensified after crude oil prices surged from nearly USD 70 per barrel to around USD 126 per barrel amid the ongoing conflict in the Middle East. Supply disruptions and instability in the Strait of Hormuz, a key global oil transit route, have further added to global energy concerns.
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Sources said the government and oil companies are together absorbing nearly Rs 24 per litre on petrol and up to Rs 30 per litre on diesel to shield consumers from the sudden price shock. However, continued losses have reportedly forced authorities to consider revising retail fuel prices.
If approved, petrol and diesel prices could rise by Rs 4 to 5 per litre, while domestic LPG cylinder rates may increase by Rs 40 to 50. This would be the first major fuel price hike in almost four years, with prices having remained mostly stable since 2022.
Despite the global crisis, India has so far managed to avoid fuel shortages and rationing by increasing LPG production, diversifying crude imports from countries including Russia and the United States, and operating refineries at maximum capacity.
