If approved, this would mark the first increase in petrol and diesel prices in nearly four years, with potential hikes of around Rs 4–5 per litre expected. The government is anticipated to make a decision on this matter within the next few days amid rising inflation concerns.
The proposed increase follows a prolonged period during which retail fuel prices have largely remained frozen since 2022, despite significant fluctuations in global crude oil prices. Sources indicate that the current situation is largely driven by a sharp rise in these prices due to ongoing conflicts in West Asia.
The ramifications of such an increase could be substantial; state-owned oil marketing companies are currently facing losses of approximately Rs 20 per litre on petrol and around Rs 100 per litre on diesel. This financial strain has compelled them to advocate for adjustments in retail pricing to alleviate their losses.
Key facts:
- Petrol and diesel prices may rise by Rs 4–5 per litre.
- Domestic LPG cylinders could see a price increase of about Rs 40–50.
- This would be the first increase since retail rates were frozen in 2022.
The Ministry of Petroleum and Natural Gas has stated that retail pump prices have been kept unchanged, indicating a careful monitoring of the evolving situation. Government sources further noted that they are closely observing how developments in West Asia impact global energy markets.
However, no final decision regarding the price hike has been announced yet, leaving consumers and market analysts awaiting clarity on how these changes might unfold. The upcoming days will likely be crucial as the government deliberates on this pressing issue affecting millions across India.
