Crude oil, which was priced at around $70 per barrel last year, has averaged more than $114 per barrel in late April. Will this lead to a petrol price hike in India?
Global oil prices jumped sharply after the US and Israel launched strikes on Iran on February 28, followed by Tehran’s extensive retaliation that effectively closed the Strait of Hormuz. Crude oil, which was priced at around $70 per barrel last year, has averaged more than $114 per barrel in late April.
But the Indian government said that the retail prices of petrol and diesel have remained unchanged since early April 2022.
Last week, a senior oil ministry official said that state-run fuel retailers were facing losses of around ₹20 per litre on petrol and nearly ₹100 per litre on diesel because of unchanged retail prices for almost four years, despite the rise in international oil rates.
Notably, state-run oil companies earned significant profits when global crude prices were largely subdued in the past couple of years, and retail fuel prices remained largely stagnant.
On Friday, Indian Oil Corporation (IOC), speaking on behalf of the industry, said that prices of petrol and diesel would remain unchanged despite rising global energy costs.
However, government sources told PTI that a rise in petrol and diesel prices cannot be ruled out in the near term.
Hike in petrol and diesel prices?
On Wednesday, a Press Information Bureau (PIB) post dismissed social media claims of an alleged government-issued order for a “hike in petrol and diesel prices by ₹10 and ₹12.50, respectively”.
“An order circulating on social media claims to be issued by the Ministry of Petroleum and Natural Gas, stating that petrol and diesel prices have been increased by ₹10 and ₹12.50, respectively,” PIB said on X., adding, “This order is #FAKE. The Government of India has NOT issued any such Order.”
Check the petrol price today in your city
| City | Price | Price Change |
|---|---|---|
| New Delhi | ₹94.77 | 0.00 |
| Kolkata | ₹105.41 | -0.04 |
| Mumbai | ₹103.54 | 0.00 |
| Chennai | ₹101.06 | +0.26 |
| Gurugram | ₹95.30 | -0.27 |
| Noida | ₹94.77 | -0.03 |
| Bengaluru | ₹102.96 | 0.00 |
| Bhubaneswar | ₹101.03 | +0.05 |
| Chandigarh | ₹94.30 | 0.00 |
| Hyderabad | ₹107.46 | 0.00 |
| Jaipur | ₹105.03 | -0.37 |
| Lucknow | ₹94.73 | -0.04 |
| Patna | ₹105.23 | 0.00 |
| Thiruvananthapuram | ₹107.48 | 0.00 |
‘When crude prices moved up sharply…’
Hardeep Singh Puri, Union Minister for Petroleum and Natural Gas, said on Friday that India expanded its crude oil sourcing base to 41 countries from 27 earlier, as part of efforts to strengthen energy security during the global energy crisis.
He said that this long-term planning played a key role in managing the crisis.
“Because preparations made over the last 10 years, the decade, came into play exactly when they were needed. We diversified our sources; crude sourcing has now expanded from 27 countries to 41,” he said.
Puri also highlighted steps taken to shield consumers from rising global prices.
“When crude prices moved up sharply, our oil marketing companies carried under recoveries that would normally have translated into a direct retail increase. Excise duty was cut, export levies were used to keep Indian products in Indian markets,” he said.
Citing current fuel prices, he added, “The consequence is visible. As of late April, petrol in Delhi remains at ₹94.77 per litre and diesel at ₹87.67 per litre.”
