Petrol and Diesel Become Costlier Across Major Cities
Petrol and diesel prices were increased across the country on Friday as oil marketing companies (OMCs) announced a hike of around Rs 3 per litre amid mounting pressure from soaring global crude oil prices linked to the escalating West Asia crisis.
With the revised rates taking immediate effect, petrol prices in Delhi climbed by Rs 3.14 per litre to Rs 97.77, while diesel prices increased by Rs 3.11 per litre. Similar price hikes were implemented in multiple cities across the country.
The latest revision comes as international crude oil prices crossed the $100 per barrel mark due to fears of prolonged supply disruptions triggered by tensions in the Middle East.
Oil Companies Facing Mounting Financial Pressure
Officials from the Petroleum Ministry said state-run fuel retailers have been facing heavy under-recoveries after continuing to shield consumers from the full impact of rising crude oil prices.
According to Sujata Sharma, Joint Secretary in the Union Petroleum Ministry, the combined under-recovery on petrol, diesel and LPG has touched nearly Rs 30,000 crore every month at current crude price levels.
“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 also stated that the Centre had already reduced excise duties on petrol and diesel, sacrificing nearly Rs 14,000 crore in monthly revenue, but losses faced by oil companies continue to widen.
Hardeep Singh Puri Warns of Profit Wipeout
Union Petroleum Minister Hardeep Singh Puri warned that prolonged elevated crude oil prices could wipe out the entire FY26 profits of state-run oil marketing companies.
Speaking at the CII Annual Business Summit 2026, the minister said oil retailers are currently losing close to Rs 1,000 crore every day because of rising import costs and controlled retail pricing.
“The financial stress on state-run fuel retailers has become so severe that a single quarter of losses at prevailing crude price levels could potentially erase their entire profit after tax for FY26,” Puri said.
He added that combined quarterly losses could touch nearly Rs 1 lakh crore if current global oil market conditions continue.
PSU Fuel Retailers May Face Huge Quarterly Losses
Industry estimates suggest that the country’s three major public sector fuel retailers — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum — could together report losses of nearly Rs 1.2 lakh crore in the first quarter of FY27 if crude oil prices remain elevated.
Analysts believe additional fuel price hikes may become unavoidable if geopolitical tensions in West Asia continue to disrupt global energy supplies.
