With global crude oil prices soaring, Indian oil marketing companies (OMCs) face severe financial losses, prompting imminent price hikes for petrol and diesel. A ₹2 to ₹4 increase per litre is likely soon, as OMCs are losing approximately ₹24 on petrol and ₹30 on diesel.
The current situation stems from Brent crude oil prices reaching an alarming $108 per barrel. This surge has put immense pressure on OMCs, who have been trying to maintain stable fuel prices since April 2022. However, the reality of the market is catching up with them — they can’t absorb these losses indefinitely.
Interestingly, this price hike comes at a time when LPG demand is also waning. In April 2026, LPG consumption in India fell by 16.16%, dropping to 2.2 million tonnes. This decline raises questions about consumer behavior in response to rising costs and the overall impact of inflation.
Key facts:
- The government previously reduced excise duty by ₹10 per litre, leading to a revenue loss of ₹1.7 lakh crore annually.
- The average price of a 19-kg LPG cylinder in Delhi has now reached ₹3,071.50.
- 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.”
The government seems aware of the financial strain on OMCs. An unnamed source indicated that a price adjustment is unavoidable due to their mounting losses. It’s a delicate balance — how will consumers react when faced with higher fuel costs? Will they adapt or resist?
No timeline has been shared regarding when the government will officially announce the price hikes, but it’s expected soon after the election results. This uncertainty adds another layer of tension as consumers brace themselves for potential increases in transportation costs.
The ripple effects of these changes could extend beyond just fuel prices. With inflation already a concern, how will these hikes affect everyday expenses? The interconnectedness of energy costs with broader economic factors complicates the picture further.
