A hike in petrol and diesel prices cannot be ruled out in the near future as losses continue to mount due to a four-year cap on retail rates amid a surge in global oil prices, PTI said on Friday, citing government sources.
International oil prices rose sharply this week, briefly touching a four-year high of $126 a barrel before falling slightly, though remaining above $110. The sustained rise was driven by restricted shipping through the Strait of Hormuz and heightened tensions between the United States and Iran, with the two sides exchanging sharp remarks amid stalled peace talks.
On behalf of the industry, the Indian Oil Corporation (IOC) said prices of petrol, diesel and domestic LPG will remain unchanged despite rising global energy costs.
However, state-owned oil companies have increased rates for commercial LPG, industrial diesel, 5kg LPG cylinders and jet fuel supplied to international airlines in line with higher input costs.
Analysts have previously warned that fuel prices could rise ₹25-28 per liter after the end of polls for the West Bengal Assembly elections on April 29.
PIB verifies government’s claim of ‘increase in petrol and diesel prices’ order
The Press Information Bureau (PIB) published a post on Wednesday about X verified claims about a government order to “increase petrol and diesel prices by ₹10 a ₹12.50 respectively”.
“The order circulating on social media claims to have been issued by the Ministry of Petroleum and Natural Gas stating that petrol and diesel prices have been increased by ₹10 a ₹12.50 respectively,” PIB said on X. adding, “This order is #FAKE. No such order has been issued by Govt of India.”
Global oil prices jumped after the US and Israel launched strikes on Iran on February 28, followed by a sweeping retaliation by Tehran that effectively closed the Strait of Hormuz – one of the world’s most important energy routes linking the Persian Gulf to global markets and carrying about a fifth of the world’s oil trade, along with significant volumes of liquefied natural gas.
A senior petroleum ministry official said during a press conference last week that the state-run fuel retailers were facing losses of about ₹20 per liter for petrol and almost ₹100 per liter of diesel as retail prices remained flat for nearly four years despite a rise in international oil rates. However, she noted that there are currently no plans to revise fuel prices.
Oil, which hovered around $70 a barrel last year, has averaged more than $114 a barrel this month.
Retail petrol and diesel prices have been unchanged since the start of April 2022, although global oil rates have fluctuated over the period. When oil prices fell, state-owned oil companies made substantial profits, which helped offset losses during periods of rising prices.
Currently, the price of petrol in Delhi is for ₹94.77 per liter while diesel costs ₹87.67 per litre.
