Petrol, diesel price hike
If approved, this would mark the first increase in petrol and diesel prices in nearly four years. The proposed hike could see rates rise by around Rs 4–5 per litre, with domestic LPG cylinders potentially increasing by Rs 40–50.
Retail fuel prices have remained unchanged since 2022—despite significant fluctuations in global crude oil prices. This stagnation has left state-owned fuel retailers incurring losses of about Rs 20 per litre on petrol and roughly Rs 100 per litre on diesel.
The increase is primarily driven by a sharp rise in global crude oil prices due to ongoing conflicts in West Asia. Oil marketing companies have absorbed these losses as they maintained retail pump prices, but the financial strain may soon force their hand.
Key facts:
- Petrol and diesel prices may increase by around Rs 4–5 per litre.
- Domestic LPG cylinders could see a hike of about Rs 40–50.
- State-owned fuel retailers are currently losing approximately Rs 20 on petrol and Rs 100 on diesel per litre.
The government is expected to make a decision regarding this price hike within the next week. Government sources indicate they are closely monitoring the evolving situation in West Asia and its impact on global energy markets.
However, no final decision has been announced yet regarding the price hike. The uncertainty surrounding both global oil dynamics and domestic economic conditions leaves many wondering how this will affect inflation concerns across India.
