With global crude oil prices soaring, Indian oil marketing companies are facing severe financial losses that will likely lead to an increase in petrol and diesel prices. The anticipated hike ranges from ₹2 to ₹4 per litre, a direct response to the current economic pressures.
Brent crude oil prices have reached an alarming $108 per barrel, causing oil marketing companies (OMCs) to incur losses of ₹24 per litre on petrol and ₹30 per litre on diesel. This situation has forced OMCs to reconsider their pricing strategies in light of these unsustainable losses.
The backdrop of this crisis is rooted in the stability of petrol and diesel prices in India since April 2022. Despite rising global crude oil prices, the Indian government previously reduced excise duty by ₹10 per litre, which has led to a significant revenue loss of approximately ₹1.7 lakh crore annually. This decision was aimed at cushioning consumers from the shocks of inflation but has now put OMCs in a precarious position.
Key statistics:
- Petrol and diesel prices are expected to rise by ₹2 to ₹4 per litre soon.
- Brent crude oil is currently priced at $108 per barrel.
- OMCs are losing ₹24 per litre on petrol and ₹30 per litre on diesel.
- LPG consumption in India fell by 16.16% in April 2026, totaling 2.2 million tonnes.
The decline in LPG demand—down by over 16%—adds another layer of complexity for OMCs as they navigate this turbulent market. A senior official remarked, “We cannot keep prices unchanged when there are supply issues. At some point, we have to make adjustments according to market conditions.” This sentiment echoes the broader understanding that price adjustments are inevitable given the financial strain on OMCs.
The government is poised to announce these price increases shortly after the election results, making it a critical moment for consumers and stakeholders alike. As officials prepare for this change, no specific timeline has been shared regarding when exactly these adjustments will take effect.
The average price of a 19-kg LPG cylinder in Delhi has skyrocketed to ₹3,071.50, further illustrating the impact of rising fuel costs on everyday life. With inflation already a concern, these impending increases could exacerbate financial pressures for many households across India.
