Government sources have indicated that an increase in petrol and diesel prices cannot be ruled out in the near future, following a prolonged freeze in retail rates amid rising global crude oil prices. The international crude oil price surged to a four-year high of $126 per barrel this week before slightly retreating, maintaining levels above $110 per barrel. This volatility is attributed to restricted shipping through the Strait of Hormuz and escalating tensions between US and Iranian leaders amid stalled peace negotiations.
Despite the rise in global energy costs, Indian Oil Corporation (IOC) announced earlier in the day that there would be no immediate increase in the prices of petrol, diesel, or domestic LPG. State-owned oil firms have, however, raised prices for commercial LPG, industrial diesel, 5-kg LPG, and jet fuel supplied to international airlines, in line with increased costs.
Analysts have previously predicted potential price hikes of ₹25 to ₹28 per litre following the conclusion of assembly elections in West Bengal on April 29.
International oil prices escalated after the attack by the US and Israel on Iran on February 28, leading to a retaliatory response from Tehran that effectively disrupted operations in the Strait of Hormuz, a crucial energy conduit responsible for about 20% of global oil trade and significant volumes of liquefied natural gas.
A senior official from the oil ministry reported last week that state-owned fuel retailers were incurring losses of approximately ₹20 per litre on petrol and around ₹100 per litre on diesel, as prices have remained unchanged for nearly four years despite fluctuations in global oil prices. However, the official stated that there are no current plans to increase prices.
Crude oil, which was priced at $70 per barrel last year, has averaged over $114 this month. Retail prices for petrol and diesel in Delhi have been held steady since early April 2022, allowing state-owned oil companies to record profits during periods of declining prices to offset losses when prices rose. Currently, petrol is priced at ₹94.77 per litre, while diesel costs ₹87.67.
The article was published on May 1, 2026.
