Petrol, Diesel Prices May Rise Before May 15 Amid Surge In Crude Oil Costs

Petrol and diesel prices in India are likely to be increased before May 15 as state-owned oil marketing companies continue to face heavy financial pressure due to elevated global crude oil prices, according to news reports.

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Oil marketing companies are currently facing under-recoveries of nearly ₹30,000 crore per month as retail fuel prices remain largely unchanged despite a sharp rise in global crude oil prices.

Global crude oil prices have climbed from nearly $70 per barrel to around $126 per barrel in recent weeks amid continuing tensions in the Middle East and concerns over supply disruptions.

Fuel Prices May Increase By ₹4-5 Per Litre

According to sources, petrol and diesel prices in India could be increased by around ₹4-5 per litre if the government approves a price revision. Domestic LPG cylinder prices may also rise by ₹40-50.

If implemented, this would mark the first major revision in petrol and diesel prices in almost four years, with retail fuel rates remaining mostly unchanged since 2022.

As per reports, the government and oil marketing companies are currently absorbing a significant portion of the increase in global energy costs. Industry estimates suggest that nearly ₹24 per litre on petrol and ₹30 per litre on diesel are being absorbed at peak crude price levels.

Middle East Conflict Affects Oil Supply

The rising crude oil prices are said to be fueled by the ongoing West Asia conflicts and disruptions along the Strait of Hormuz, a key global oil transit route.

Nearly 20% of global oil supplies pass through the Strait of Hormuz, making the region critical for international energy markets.

Despite higher global oil prices, India has so far avoided fuel shortages and supply disruptions. Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation have continued fuel supply operations without rationing.

Government Expands Energy Measures

As per reports, India increased domestic LPG production from 36,000 tonnes per day to 54,000 tonnes per day after the crisis intensified.

The government also reduced excise duties on petrol and diesel earlier to limit the impact of rising crude oil prices on consumers.

Officials said India diversified crude oil imports by increasing purchases from Russia, the U.S., West Africa and other regions. Refinery utilisation levels were also reportedly increased to ensure uninterrupted fuel availability.

Infrastructure Expansion Supports Supply

Officials said India’s energy infrastructure expansion over the past decade helped manage the pressure from rising global energy prices.

According to sources, LPG terminals in the country have doubled since 2014, while crude sourcing has expanded from 27 countries to 40 countries. Ethanol blending in petrol has increased from 1.5% to 20%.

Government officials said developments in West Asia and crude oil prices continue to be monitored while discussions on the timing and extent of any fuel price revision remain ongoing.