However, the government has assured that this is limited to premium variants only and that the prices of regular petrol and diesel remain unchanged. | Photo credit: Muthuganesapandy. M
In what could be the first sign of cracks due to fiscal stress caused by skyrocketing global oil prices, Indian oil companies on Friday (March 20, 2026) hiked the price of premium variant petrol and diesel by around ₹2-3 and ₹22 per litre, respectively.
However, the government has assured that this is limited to premium variants only and that the prices of regular petrol and diesel remain unchanged.
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In a social media post on Friday (March 20, 2026) evening, state-run IndianOil confirmed the price of its premium XP-95 petrol, which has increased by ₹2 per liter from ₹99.87 to ₹101.89. Hindustan Petroleum also announced a similar increase.
“IndianOil has not ensured any increase in current fuel prices in India, even in the face of rising international costs,” the post said. “The limited revision applies only to XP-95 Premium Gasoline with minimal impact on overall consumption.”
The refiner said the premium variant of gasoline accounts for about 5% of total gasoline sales. Apart from auto fuel, the price of industrial diesel has been revised upwards from ₹87.67 to ₹109.59 per litre.
The hike in premium petrol and diesel prices contrasts with OMC’s moves when oil prices were low. A previous analysis by The Hindu found that OMCs had not cut the price of any form of petrol or diesel in the last two-and-a-half years, even as oil prices fell to an average of $64 per barrel.
On Friday (March 20, 2026) evening, Brent crude futures traded at $108.1 per barrel, continuing their upward trajectory as tensions in West Asia continue to rise. Further, India’s crude oil basket – the average price at which India imports oil – averaged $117.09 per barrel in the current month, according to data from the Petroleum and Planning Analysis Cell.
Responding to queries on the hike in petrol prices, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said that the increase will not affect the common man.
“That means (the premium variant) barely represents 2-4% of the petrol sold in the country every day,” she said. “It’s not like the price of petrol has gone up (which would affect) the common man.”
The increase in the price of premium fuels also brought barbs from the opposition. “While people are already facing problems of gas shortage, now they will have to pay for petrol,” the Indian National Congress said in a post on social media.
(With inputs from Sandeep Phukan)
Published – 20 March 2026 22:22 IST
