Fuel Prices Hiked Across India as Global Oil Crisis Deepens

New Delhi: Petrol, diesel and CNG prices have been increased across the country after state-run oil marketing companies (OMCs) came under severe financial pressure due to soaring global crude oil prices amid the ongoing West Asia crisis.

The revised fuel prices came into effect from Friday, with petrol and diesel becoming costlier by around Rs 3 per litre each.

In Delhi, petrol prices have risen by Rs 3.14 per litre to Rs 97.77, while diesel prices increased by Rs 3.11 per litre.

Compressed Natural Gas (CNG) has also become more expensive, with oil companies raising rates by Rs 2 per kilogram. Following the hike, CNG in Delhi now costs Rs 79.09 per kg.

The price revision comes as OMCs continue to absorb heavy losses despite the sharp rise in international crude oil prices.

According to Sujata Sharma, Joint Secretary in the Union Petroleum Ministry, the combined under-recovery on petrol, diesel and LPG has reached nearly Rs 30,000 crore every month.

“Our OMCs are buying crude oil at higher rates but are not selling at corresponding rates to protect consumers. This is affecting their finances,” Sharma said.

She added that the Centre had already reduced excise duty on petrol and diesel, resulting in a monthly revenue sacrifice of nearly Rs 14,000 crore, but losses continue to mount.

Union Petroleum Minister Hardeep Singh Puri recently warned that if crude oil prices remain elevated, state-run fuel retailers could see their entire FY26 profits wiped out.

Speaking at the CII Annual Business Summit 2026 earlier this week, Puri said the ongoing Middle East conflict has intensified pressure on Indian oil companies, which are currently losing nearly Rs 1,000 crore every day.

He estimated that combined quarterly losses could reach nearly Rs 1 lakh crore if crude oil prices continue at current levels.

Global crude oil prices have surged beyond the crucial $100 per barrel mark due to fears of prolonged supply disruptions linked to tensions involving the US and Iran.

“The financial stress on state-run fuel retailers has become so severe that one quarter of losses at current crude price levels could wipe out their entire FY26 profit after tax,” the minister said.

Industry estimates suggest that the country’s three major public sector fuel retailers — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum — may report combined losses of nearly Rs 1.2 lakh crore in the first quarter of FY27 alone if the crisis persists.

With inputs from IANS