Petroleum Prices Set to Rise in India Amid Soaring Crude Oil Costs

With global crude oil prices soaring, Indian oil marketing companies face severe financial losses, prompting imminent price hikes for petrol and diesel. Petrol and diesel prices in India are likely to increase by ₹2 to ₹4 per litre soon.

Brent crude oil prices have reached $108 per barrel. Oil marketing companies (OMCs) are currently losing ₹24 per litre on petrol and ₹30 per litre on diesel. They cannot maintain current pricing levels due to these losses.

Key facts:

• LPG consumption in India decreased by 16.16% in April 2026.
• LPG consumption fell to 2.2 million tonnes in April 2026.
• The government previously reduced excise duty by ₹10 per litre, resulting in a revenue loss of ₹1.7 lakh crore annually.
• The average price of a 19-kg LPG cylinder in Delhi has reached ₹3,071.50.

Officials have stated that OMCs are under significant financial pressure because of rising crude oil prices. A senior official noted, “We cannot keep prices unchanged when there are supply issues. At some point, we have to make adjustments according to market conditions.” The government believes that a price adjustment is unavoidable due to the financial strain on OMCs.

Petrol and diesel prices in India have remained stable since April 2022 despite rising global crude oil prices. This stability may soon change as the government is expected to announce a price increase for petrol and diesel soon after the election results.