Fuel prices in India have been increased, with petrol now costing Rs 97.77 per litre, up from Rs 94.77, while diesel prices have risen from Rs 87.67 to Rs 90.67 per litre, as reported by news agency ANI.
Background of the Price Hike
India had so far avoided increases in petrol and diesel prices, choosing instead to absorb the pressure through state-run oil marketing companies (OMCs), tax adjustments, and supply management measures. The Centre has repeatedly asserted that there is no fuel shortage in the country and no plan to introduce rationing of petrol, diesel, or LPG despite disruptions in global energy shipments linked to the Iran conflict and the Strait of Hormuz crisis.
"There is no need to panic. There are sufficient supplies. There is no rationing in place. It's not going to happen," Oil Secretary Neeraj Mittal said recently at the CII Annual Business Summit.
Fuel Stock and Supply Situation
Officials said India currently maintains around 60 days of fuel stocks and nearly 45 days of LPG inventories despite continuing volatility in global energy markets. According to official discussions reviewed during recent government briefings, OMCs are estimated to be losing between Rs 1,000 crore and Rs 1,200 crore every day because of elevated crude prices and unchanged pump rates. Under-recoveries are estimated to have approached nearly Rs 2 lakh crore during the first quarter of 2026.
India imports nearly 90 per cent of its crude oil requirements, making the economy highly vulnerable to global energy price shocks.
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