- By Shubham Bajpai
- Mon, 11 May 2026 06:09 PM (IST)
- Source:JND
The central government is likely to increase the fuel prices in India as oil marketing companies face difficulty due to rising crude prices.
According to a report by Money Control, citing sources, Prime Minister Narendra Modi's austerity appeal to citizens to curb dependence on petrol, diesel and gas could be an indication of that hike, which has been delayed for a long time.
In case of a hike, its extent would depend on global crude trends and the government's approach to balancing inflation, fiscal pressures and energy pricing, the report added.
The report suggests that the discussions are underway among the Ministry of Finance, the Ministry of Petroleum and Natural Gas, and oil marketing companies (OMCs).
Hardeep Puri highlights losses after PM Modi's appeal
On May 10, Hardeep Singh Puri, the Minister of Petroleum and Natural Gas, took to LinkedIn soon after PM Modi's appeal and highlighted the losses incurred by the OMCs in India. He said that OMCs are under pressure as under-recoveries are projected to be Rs 2 lakh crore this quarter, with losses estimated at around Rs 1 lakh crore.
Puri added that the public OMCs are buying LPG, crude and gas at higher prices due to the West Asia crisis but selling final products like petrol, diesel, etc at a pre-conflict price to protect consumers. This, according to Puri, has incurred losses of up to Rs 1,000 crores.
Prices rise globally, stable in India
According to the data from the Petroleum Planning and Analysis Cell, the average oil import price for refiners in February was $69.01, which jumped to $104.68 in May. On Feb 28, when the US and Israel attacked Iran, the benchmark Brent was trading at around $72.50. During the conflict, the prices went up to $120. On May 11, prices were at $105 after a brief respite.
However, the prices in Indian markets remained the same. "We have managed to protect the more than 60 million consumers who visit the retail stations every day. Still further, the Modi government reduced excise duties on retail fuel and saw revenue losses of Rs 14,000 crore in a month," the minister noted.
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The report by the aforementioned media outlet suggests that the public OMCs may increase the prices of petrol and diesel in the coming days to offset the rising losses.