With global crude oil prices soaring, Indian oil marketing companies (OMCs) face severe financial losses, prompting imminent price hikes for petrol and diesel. Recent reports indicate that petrol and diesel prices in India are likely to increase by ₹2 to ₹4 per litre soon, as OMCs currently endure substantial losses of ₹24 per litre on petrol and ₹30 per litre on diesel.
The surge in Brent crude oil prices, which have now reached $108 per barrel, has placed immense pressure on OMCs. Despite these challenges, petrol and diesel prices have remained stable since April 2022, largely due to government interventions. However, sources indicate that the government believes a price adjustment is unavoidable due to the financial strain on OMCs.
Key facts:
- OMCs are currently losing ₹24 per litre on petrol and ₹30 per litre on diesel.
- Brent crude oil prices have reached $108 per barrel.
- Petrol and diesel prices in India are likely to increase by ₹2 to ₹4 per litre soon.
- The average price of a 19-kg LPG cylinder in Delhi has risen to ₹3,071.50.
Furthermore, LPG consumption in India has shown a significant decline of 16.16% in April 2026, falling to 2.2 million tonnes. This decrease may be linked to rising costs impacting household budgets amid ongoing inflationary pressures.
The government previously reduced excise duty by ₹10 per litre, resulting in a revenue loss of approximately ₹1.7 lakh crore annually. This reduction aimed to cushion consumers from the impact of rising global oil prices but has further strained OMC finances. 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.”
Looking ahead, the government is expected to announce a price increase for petrol and diesel soon after the election results are finalized. The exact timing and magnitude of these increases remain uncertain; however, it is clear that OMCs face mounting pressures that could lead to further adjustments in fuel pricing.
