As oil marketing companies (OMCs) continue to face mounting losses amid the ongoing West Asia crisis, petrol and diesel prices were raised by Rs 3 per litre each on Friday.
The revised rates came into effect immediately across the country.
In Delhi, petrol prices increased by Rs 3.14 per litre to Rs 97.77, while diesel prices rose by Rs 3.11 per litre.
Meanwhile, amid the continuing Middle East crisis, oil companies have also increased CNG prices. Effective Friday, the price of CNG has been raised by Rs 2 per kilogram, taking the new rate in Delhi to Rs 79.09 per kilogram.
OMCs have been facing mounting financial pressure after keeping retail fuel prices unchanged despite a sharp rise in global crude oil prices.
The combined under-recovery on petrol, diesel and LPG has reached nearly Rs 30,000 crore per month, according to Sujata Sharma, Joint Secretary in the Union Petroleum Ministry.
“Our OMCs are buying crude oil at higher rates but are not selling at corresponding prices in order to protect consumers. This is affecting their finances,” Sharma said.
She added that the Centre had already reduced excise duties on petrol and diesel, resulting in a monthly revenue sacrifice of nearly Rs 14,000 crore, but under-recoveries continue to widen.
India’s state-run oil marketing companies could see their entire FY26 profits wiped out if crude oil prices remain elevated, Petroleum Minister Hardeep Singh Puri warned amid escalating tensions in the Middle East.
Speaking at the CII Annual Business Summit 2026 this week, Puri said the ongoing energy crisis triggered by the conflict in the Middle East has sharply increased pressure on Indian fuel retailers, with OMCs currently losing nearly Rs 1,000 crore every day.
He estimated that their combined quarterly losses could touch around Rs 1 lakh crore if current trends continue.
The warning comes as global crude oil prices have surged past the psychologically important USD 100 per barrel mark amid fears of prolonged supply disruptions linked to the US-Iran conflict.
“The financial stress on state-run fuel retailers has become so severe that a single quarter of losses at prevailing crude price levels could potentially erase their entire profit after tax for FY26,” the minister said.
The three major public sector oil retailers — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum — are projected to report combined losses of nearly Rs 1.2 lakh crore in the first quarter of FY27 alone, according to industry estimates cited during the discussion.
—IANS
