Oil marketing companies (OMCs) have raised petrol and diesel prices by Rs 3 per litre each due to mounting losses amidst the West Asia crisis. The new rates are now in effect nationwide. In Delhi, petrol prices have gone up by Rs 3.14 per litre to Rs 97.77, while diesel prices have increased by Rs 3.11 per litre.
Amid the Middle East crisis, OMCs have also hiked CNG prices by Rs 2 per kilogram, with the new rate in Delhi set at Rs 79.09 per kilogram. The companies are facing significant financial losses by not adjusting retail fuel prices despite the surge in crude oil prices. Sujata Sharma, Joint Secretary in the Union Petroleum Ministry, mentioned that the combined under-recovery on petrol, diesel, and LPG has reached nearly Rs 30,000 crore monthly.
The Centre has reduced excise duties on petrol and diesel, sacrificing around Rs 14,000 crore in monthly revenue. However, under-recoveries are still increasing. Petroleum Minister Hardeep Singh Puri warned that if crude oil prices remain high, state-run OMCs could lose their entire FY26 profits. He highlighted that the ongoing energy crisis from the Middle East conflict is adding immense pressure on Indian fuel retailers, with daily losses nearing Rs 1,000 crore.
Puri estimated that quarterly losses for OMCs could reach approximately Rs 1 lakh crore if the current situation persists. The global crude oil prices have crossed $100 per barrel due to concerns about prolonged supply disruptions linked to the US-Iran conflict. The financial strain on state-run fuel retailers is severe, with potential losses erasing their entire profit after tax for FY26 in just one quarter.
