With global crude oil prices soaring—now at $108 per barrel—Indian oil marketing companies (OMCs) are bracing for significant financial losses, leading to expected price hikes for petrol and diesel. Soon, consumers might see an increase of ₹2 to ₹4 per litre.
Currently, OMCs are losing ₹24 per litre on petrol and ₹30 per litre on diesel. This is unsustainable. 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.” These losses stem from a combination of rising crude oil costs and the government’s previous reduction of excise duty by ₹10 per litre—an action that has resulted in a staggering revenue loss of ₹1.7 lakh crore annually.
Key statistics:
- Brent crude oil prices have reached $108 per barrel.
- Petrol prices are expected to rise by ₹2 to ₹4 per litre soon.
- OMCs are currently losing ₹24 per litre on petrol and ₹30 per litre on diesel.
- LPG consumption in India decreased by 16.16% in April 2026.
This situation has also affected the demand for LPG. In April 2026, LPG consumption fell to 2.2 million tonnes—down 16.16% from previous months. The rising costs of petroleum products have put immense pressure on households already grappling with inflation.
The government acknowledges the urgency of addressing these financial strains on OMCs. A spokesperson commented, “The government believes that a price adjustment is unavoidable due to the financial strain on OMCs.” As the nation awaits election results, an announcement regarding the price increase for petrol and diesel is anticipated shortly thereafter.
While officials have not confirmed specific timelines for these adjustments, the implications for consumers are clear: higher transportation and fuel costs will ripple through every sector of the economy. As families prepare for these changes, many wonder how this will affect their daily lives and budgets in the coming weeks.
