Petrol, Diesel Prices May Rise Before May 15 Amid Crude Oil Surge: Sources 

Government and oil companies are reportedly under severe financial pressure as global crude oil prices spike due to the ongoing West Asia conflict

Petrol and diesel prices in India are likely to be increased before May 15 as state-run oil marketing companies continue to face mounting losses due to soaring global crude oil prices, according to government and industry sources.

The sharp rise in crude oil prices has been triggered by the ongoing conflict in West Asia and disruptions around the Strait of Hormuz, a critical global shipping route through which nearly 20% of the world’s oil supply passes.

Global crude prices have reportedly jumped from around USD 70 per barrel to nearly USD 126 per barrel in recent weeks. Despite this surge, fuel prices in India have remained largely unchanged since 2022, with petrol still retailing around ₹95 per litre in many cities.

Sources said public sector oil marketing companies including Indian Oil, Bharat Petroleum and Hindustan Petroleum are currently facing under-recoveries estimated at nearly ₹30,000 crore per month.

If approved, petrol and diesel prices in India could increase by around ₹4 to ₹5 per litre, while domestic LPG cylinder prices may rise by ₹40 to ₹50.

Officials said both the government and oil companies have so far absorbed a major portion of the burden in an attempt to shield consumers from global fuel shocks. Industry estimates suggest that at peak crude prices, nearly ₹24 per litre on petrol and ₹30 per litre on diesel were being absorbed through a combination of excise duty cuts and oil company losses.

Several countries have already introduced emergency measures to deal with the fuel crisis. Bangladesh has imposed fuel rationing, Sri Lanka introduced a four-day work week, Pakistan reduced working days for government offices, while South Korea implemented fuel price caps.

India, however, has managed to avoid shortages, long queues or rationing despite the global crisis.

According to sources, India responded quickly after tensions escalated in West Asia by ramping up domestic LPG production from 36,000 tonnes per day to 54,000 tonnes per day. The country also diversified crude imports by increasing purchases from Russia, the United States, West Africa and other regions.

Refineries have reportedly been operating at more than 100% capacity to maintain uninterrupted fuel supply across the country.

Officials also credited India’s expanded energy infrastructure for helping manage the crisis better. Over the past decade, LPG terminals have doubled, crude sourcing has expanded from 27 countries to 40, ethanol blending has risen from 1.5% to 20%, and strategic petroleum reserves have been strengthened.

Government sources said authorities are closely monitoring the situation in West Asia and evaluating different options regarding the timing and extent of any fuel price hike. The focus remains on balancing the financial stress faced by oil companies while ensuring that inflationary pressure on consumers remains under control.

Disclaimer: Fuel price revisions depend on international crude oil markets, government taxes and policy decisions. Final rates may vary based on official announcements and regional pricing.