15 May,2026 08:15 AM IST | New Delhi | mid-day online correspondent
Representational Image. Pic/Pexels
Petrol and diesel prices were increased by more than Rs 3 per litre across the country on Friday as state-run oil marketing companies (OMCs) struggled with rising losses amid the ongoing crisis in West Asia and a sharp surge in global crude oil prices, reported IANS.
The revised fuel prices came into effect immediately. In Delhi, petrol prices rose by Rs 3.14 per litre, taking the retail rate to Rs 97.77 per litre. Diesel prices were also raised by Rs 3.11 per litre, reported IANS.
The latest hike marks one of the sharpest increases in retail fuel prices in recent months and comes as crude oil prices continue to remain above the USD 100 per barrel mark due to fears of prolonged supply disruptions linked to tensions involving Iran and the United States.
Apart from petrol and diesel, compressed natural gas (CNG) prices were also increased. Oil companies raised CNG rates by Rs 2 per kilogram with effect from Friday, reported IANS.
Following the revision, the price of CNG in Delhi now stands at Rs 79.09 per kilogram.
The increase in CNG prices is expected to impact public transport operators, commercial vehicle owners and daily commuters who rely on gas-powered vehicles as a more affordable fuel alternative, reported IANS.
According to officials in the Petroleum Ministry, OMCs have been under severe financial pressure because retail fuel prices had remained largely unchanged despite the sharp rise in global crude oil rates, reported IANS.
Sujata Sharma, Joint Secretary in the Union Petroleum Ministry, said the combined under-recovery on petrol, diesel and LPG has reached nearly Rs 30,000 crore every month, reported IANS.
She said state-run fuel retailers were purchasing crude oil at significantly higher rates but were unable to fully pass on the burden to consumers, resulting in widening financial losses, reported IANS.
Sharma also noted that the Centre had earlier reduced excise duties on petrol and diesel, leading to an estimated monthly revenue sacrifice of nearly Rs 14,000 crore. Despite the tax cuts, under-recoveries for oil companies have continued to rise, reported IANS.
Petroleum Minister Hardeep Singh Puri recently warned that India's major oil marketing companies could see their entire FY26 profits wiped out if crude oil prices remain elevated for an extended period, reported IANS.
Speaking during the CII Annual Business Summit 2026 earlier this week, the minister said the ongoing Middle East crisis has significantly increased pressure on fuel retailers, with oil companies currently losing close to Rs 1,000 crore every day, reported IANS.
He estimated that combined quarterly losses for the sector could touch nearly Rs 1 lakh crore if current market conditions continue.
Industry estimates cited during the summit suggested that the country's three major public sector fuel retailers - Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum - could report combined losses of nearly Rs 1.2 lakh crore in the first quarter of FY27 alone.
The sustained rise in crude oil prices has raised concerns over inflationary pressure in the broader economy, with higher transportation and fuel costs expected to impact household expenses as well as industrial operations in the coming months.
(With inputs from IANS)
