With global crude oil prices soaring, Indian oil marketing companies (OMCs) face severe financial losses, prompting imminent price hikes for petrol and diesel. Brent crude oil prices have reached $108 per barrel, leading OMCs to lose ₹24 per litre on petrol and ₹30 per litre on diesel.
This situation arises after a period of stability for petrol and diesel prices in India since April 2022. Despite rising global crude oil costs, the government had previously reduced excise duty by ₹10 per litre, resulting in a revenue loss of ₹1.7 lakh crore annually for the state.
Expected price adjustments:
- Petrol and diesel prices are likely to increase by ₹2 to ₹4 per litre soon.
- OMCs are currently losing ₹24 per litre on petrol and ₹30 per litre on diesel.
- The average price of a 19-kg LPG cylinder in Delhi has reached ₹3,071.50.
Meanwhile, LPG demand has also taken a hit; consumption fell by 16.16% in April 2026, dropping to 2.2 million tonnes. This decline in LPG usage reflects broader economic challenges as inflation continues to affect consumer behavior.
A senior official noted, “We cannot keep prices unchanged when there are supply issues. At some point, we have to make adjustments according to market conditions.” The government acknowledges that a price adjustment is unavoidable given the financial strain on OMCs.
Looking ahead, the government is expected to announce a price increase for petrol and diesel soon after the election results. This decision will likely impact consumers across India as they grapple with rising costs amidst ongoing inflationary pressures.
