Oil marketing companies on Tuesday raised petrol and diesel prices by nearly 90 paise per litre, marking the second revision in less than a week, as mounting losses from a surge in global crude oil rates continue to impact their operations. According to reports, petrol now costs Rs 98.64 per litre in Delhi, while diesel is priced at Rs 91.58. Prices vary across states due to different value-added tax structures.
Continuing Losses Despite Price Hikes
Despite the two revisions totaling nearly Rs 4 per litre, oil company executives stated that they were still incurring losses, although they declined to provide specific numbers. The fuel price hike came as it emerged that state-run IndianOil was losing Rs 617 on each cooking gas cylinder sold for domestic use, up from Rs 100 in February.
Government Keeps LPG Prices Unchanged
For the time being, prices of the 14.2 kg cylinders have been left untouched at Rs 913.5 in the capital, with the government likely to bear a significant part of the burden. While commercial liquefied petroleum gas prices are revised on the first of every month, oil companies kept domestic LPG prices—used for cooking by more than 33 crore households—largely stable, except for a one-time increase of Rs 60 per cylinder in March.
Diversification of Sourcing
IndianOil’s director (finance) Anuj Jain said, “Because of this disruption, we have diversified our crude and LPG sourcing. We have changed our refinery diet.” Jain added that the company had also diversified its liquefied natural gas sourcing and bought gas from Indonesia, Nigeria, Oman, and Angola after suppliers in West Asia declared force majeure.
Impact of Global Crude Prices
Last week, state-run oil retailers had increased fuel prices by nearly Rs 3 per litre for the first time in four years, which the government claimed had brought down their daily losses from Rs 1,000 crore to Rs 750 crore on the sale of petrol, diesel, and domestic LPG below market rates. Following last week’s revision, ratings agency Crisil estimated losses on petrol and diesel at Rs 10 and Rs 13 per litre, respectively.
Global crude prices have risen more than 50% since the war broke out in West Asia on February 28, disrupting flows through the Strait of Hormuz. Officials said the government initially tried to shield consumers from the price shock, but mounting losses were no longer sustainable for oil marketing companies.
Fuel Prices Across Major Cities
- Mumbai: Petrol costs Rs 107.59 per litre, diesel Rs 94.08.
- Chennai: Petrol costs Rs 104.49 per litre, diesel Rs 96.11.
- Kolkata: Petrol costs Rs 109.70 per litre, diesel Rs 96.07.
About the Author: Atul Mathur is a Senior Assistant Editor at The Times of India with over 27 years of experience in journalism. Based in Delhi, he has spent much of his career reporting on governance, public policy, and politics, churning out researched, data-driven stories that impact daily lives. Atul is known for investigative depth and strong human-interest narratives as he strives to bring clarity and context to complex issues. He currently tracks the energy sector, writing on power, renewable energy, coal, and mines.
