Oil Companies Bleed ₹20 on Petrol and ₹100 on Diesel; Govt Says No Plans to Raise Prices

 The Government of India has maintained a steady retail fuel pricing policy even as international crude oil markets have seen sharp volatility. This has resulted in significant cost pressures for state-owned oil marketing companies. 

Fuel Price Freeze and Government Clarification 

According to the Ministry of Petroleum and Natural Gas, there is no proposal under consideration to increase petrol or diesel prices.  

The statement was issued in response to reports suggesting a possible ₹25–28 per litre hike after assembly elections, which the ministry described as misleading and aimed at creating panic. 

Retail prices of petrol and diesel have remained unchanged since early April 2022. In Delhi, petrol is priced at ₹94.77 per litre, while diesel costs ₹87.67 per litre.  

The government stated that India is among the few countries where fuel prices have not been increased over the past 4 years. 

Crude Oil Surge and Under-Recoveries 

Global crude oil prices have risen sharply, increasing from about $70 per barrel last year to an average of over $113 recently.  

Following geopolitical tensions, prices surged up to nearly $119 per barrel before moderating. Currently, Brent crude is trading in the range of $103–106 per barrel. 

Sujata Sharma, Joint Secretary in MoPNG, stated that due to this rise, oil marketing companies are facing under-recoveries of around ₹20 per litre on petrol and approximately ₹100 per litre on diesel.  

These losses represent the gap between domestic retail prices and import-linked pricing, and they vary on a daily basis. 

India depends on imports for around 88% of its crude oil requirements, making it highly exposed to global price fluctuations. Despite a more than 50% increase in crude prices, domestic fuel prices have not been revised upward. 

Policy Measures and LPG Pricing Trends 

To shield consumers from rising global prices, the government reduced excise duty on petrol and diesel by ₹10 per litre last month. Additionally, it imposed a tax on fuel exports to encourage refiners to prioritise domestic supply. 

On liquefied petroleum gas (LPG), the Saudi CP benchmark, which is used for pricing, has risen by 102% between July 2023 and April 2026. However, domestic LPG prices have declined by 17% during the same period. 

Officials stated that the government’s consistent approach has been to maintain price stability and prevent the burden of rising global energy costs from being passed on to consumers. 

Read More: Fake News Alert: MoPNG Denies Reports of Petrol and Diesel Price Hike! 

Conclusion 

The government has prioritised price stability in the domestic market, even as global crude oil prices have risen significantly. This approach has resulted in substantial under-recoveries for oil companies, while insulating consumers from volatility in international energy markets. 

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