Oil companies raised petrol, diesel and CNG prices as mounting crude oil costs and the West Asia conflict intensified pressure on India’s fuel retailers.
Govt expands GATC verification ambit to cover CNG, LNG and hydrogen dispensers to boost clean fuel infra and consumer trust
Petrol and diesel prices were hiked by Rs 3 per litre across the country on Friday, marking the first major fuel price increase in recent years as the ongoing West Asia conflict continues to disrupt global energy markets and push crude oil prices higher.
The increase comes at a time when the Centre has repeatedly maintained that India has adequate fuel reserves and no immediate supply concerns despite mounting geopolitical tensions involving Iran, Israel and the United States. The conflict has triggered fears over disruptions in the Strait of Hormuz, a crucial global oil shipping route, sending Brent crude prices above the $100 per barrel mark.
Advertisement
In Delhi, petrol prices rose from Rs 94.77 per litre to Rs 97.77, while diesel rates increased from Rs 87.67 to Rs 90.67 per litre. Oil companies also raised compressed natural gas (CNG) prices by Rs 2 per kilogram, taking the new rate in the national capital to Rs 79.09 per kg.
Advertisement
The revised fuel prices came into effect immediately.
Public sector oil marketing companies have been under pressure for months as they continued to shield consumers from global crude price volatility. According to Sujata Sharma, Joint Secretary in the Union Petroleum Ministry, the combined under-recovery on petrol, diesel and LPG has reached nearly Rs 30,000 crore every month.
“Our OMCs are buying crude oil at higher rates but are not selling at corresponding rates to protect our consumers. This impacts their finances,” Sharma said.
She added that the Centre had already reduced excise duties on petrol and diesel earlier, resulting in a monthly revenue sacrifice of nearly Rs 14,000 crore.
Global oil prices have remained volatile since tensions escalated in West Asia earlier this year. The widening conflict involving Iran and Israel, along with concerns around shipping movement through the Strait of Hormuz, has intensified fears of prolonged supply disruptions.
The region remains critical for global energy supplies, with several major oil-producing countries located in West Asia.
Industry estimates cited during discussions at the CII Annual Business Summit 2026 suggest that Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited could together report losses nearing Rs 1.2 lakh crore in the first quarter of FY27 if crude prices remain elevated.
Union Petroleum and Natural Gas Minister Hardeep Singh Puri earlier this week said India had managed to maintain uninterrupted fuel supplies despite global shocks and rising crude oil prices.
Addressing the CII Annual Business Summit 2026, Puri said the country had ensured seamless availability of petrol, diesel and LPG with no reported shortages.
“At a time of global supply shocks and rising crude prices, India ensured seamless availability of petrol, diesel, and LPG across the country, with no reports of shortages,” the minister said.
However, he also warned that if crude prices remain at current levels, the financial stress on state-run fuel retailers could wipe out their FY26 profits.
According to Puri, oil marketing companies are currently losing nearly Rs 1,000 crore every day amid the ongoing energy crisis.
The Ministry of Petroleum and Natural Gas has also stated that crude inventories remain stable, refineries are operating at optimum levels, and adequate fuel stocks are available across the country.
Advertisement
