BIG Fuel Price Alert! Petrol, Diesel Price Hike Likely Soon As Indian Oil, BPCL, HPCL Face Rs 30,000 Cr Losses

Petrol, Diesel Price in India: As the global crude oil price remains higher, oil marketing companies (OMCs) are incurring huge losses of nearly Rs 30,000 crore every month. Amid mounting losses, OMCs are reportedly planning to increase petrol and diesel prices in India next week.

Petrol and diesel prices in India are expected to rise by May 15, reported India Today citing sources. Petrol and diesel prices can surge by Rs 4-5 per litre next week, and there are chances that domestic LPG prices may also spike, as per India Today report. Goodreturns couldn't independently verify the news.

Will Petrol, Diesel Price Hike In India Next Week?

There has been no official confirmation regarding petrol diesel price hike in coming week. However, media reports suggest that a revision of around Rs 4-5 litre is under discussion. Domestic LPG prices are also expected to get costlier.

OMCs Facing Heavy Loss Due To Crude Oil Price Hike

The crude oil price has seen a sharp jump in the last three months as the commodity, which was once trading close to $75 per barrel is now above $100 per barrel. As per officials, the industry players have been incurring the additional cost so far and had not increased the petrol diesel price so far. The excise duty cut on petrol and diesel offered some short-term relief to OMCs from the crude oil price shock. However, these firms are still facing massive loss on a daily basis.

The Centre aims to share the burden between consumers, the exchequer and companies, while trying to avoid any sharp shock to household budgets and transport costs across the country.

Indian Oil, Bharat Petroleum, Hindustan Petroleum Facing Huge Losses

The petrol pricing pressure is growing day by day as top OMCs (including Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum) are estimated to be losing nearly Rs 30,000 crore every month. "OMCs are facing under-recoveries of nearly 30,000 crore per month," India Today quoted a source. The mounting loss due to widening gap between controlled pump prices and surging import costs has built up over recent months.

Crude Oil Price Rally

The strain became much deeper after global crude oil moved from about USD 70 per barrel to around USD 126 per barrel. This jump followed the escalation of conflict in West Asia, which disrupted key shipping routes and raised fears of sustained supply restrictions and higher freight risks.

The Strait of Hormuz, which handles nearly 20 per cent of the world's oil flows, has seen major disruptions since the Middle East war intensified. Tanker traffic has faced delays and security risks, feeding into higher global crude prices. Analysts said these conditions have created a broader energy shock that is now feeding into domestic fuel economics.