Petroleum Prices Set to Rise in India Amid Soaring Crude Oil Costs
With global crude oil prices soaring, Indian oil marketing companies (OMCs) face severe financial losses, prompting imminent price hikes for petrol and diesel. Petrol and diesel prices in India are likely to increase by ₹2 to ₹4 per litre soon. The Brent crude oil price has reached $108 per barrel, significantly impacting the financial stability of OMCs.
Currently, OMCs are losing ₹24 per litre on petrol and ₹30 per litre on diesel. A senior official stated, “We cannot keep prices unchanged when there are supply issues. At some point, we have to make adjustments according to market conditions.” This situation has resulted in substantial pressure on these companies as they grapple with the consequences of rising crude oil costs.
The backdrop of this crisis dates back to April 2022 when petrol and diesel prices remained stable despite increasing global crude oil prices. However, the recent surge has forced the government to consider a price adjustment. A government official noted that a price adjustment is unavoidable due to the financial strain on OMCs.
Interestingly, while petrol and diesel prices are set to rise, LPG demand is also declining. In April 2026 alone, LPG consumption in India decreased by 16.16%, falling to 2.2 million tonnes. The average price of a 19-kg LPG cylinder in Delhi has reached ₹3,071.50. This decline in demand could further complicate the economic landscape as inflation looms.
The government previously reduced excise duty by ₹10 per litre on fuels, resulting in a revenue loss of ₹1.7 lakh crore annually. As OMCs continue to face significant financial pressure due to rising crude oil prices, officials have not disclosed any timeline for when the price adjustments will be implemented.
As we look ahead, the government is expected to announce a price increase for petrol and diesel soon after the election results. The impact of these changes on everyday consumers remains uncertain but is likely to be felt across various sectors.
